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Daily Markets Update, 3 July

 

 

 

 

  • European equities rise with technology and industrial stocks leading
  • U.S. Stocks mixed 
  • Dollar strengthens before July 4 holiday; gold declines
  • Oil rebound takes Brent above $49 a barrel
  • Gold at 7-week low

 

The Stoxx Europe 600 was up 0.6% in recent trading Monday, on track to snap a four-session losing streak. Asian markets mostly ended slightly higher, while the S&P 500 and Dow Jones Industrial Average were  up 0.3% after closing out their seventh consecutive quarters of gains.

As investors favored risk assets, gold fell 0.7% to $1,233 an ounce, around its lowest since May, while the dollar rose 0.6% against the yen.

The euro fell 0.5% to $1.1386. The wider WSJ Dollar Index edged up 0.4% after its worst quarter since the start of 2016.

The dollar strengthened the most in two weeks after American factories powered up in June at the fastest pace in nearly three years. Crude climbed after industry data Friday showed active U.S. rigs declined for the first time in 24 weeks.

 

Tech stocks:  when  the cash market opened and selling started in both bonds and stocks, slamming both to 2-month lows…

 

And the bond bloodbath continues…

 

 

  • The New York Stock Exchange closes early on Monday, at 1 p.m. local time, ahead of the Independence Day holiday on July 4. The bond market shuts at 2 p.m.
  • The Federal Reserve on Wednesday releases the minutes from its June 13-14 policy meeting, at which officials raised interest rates.
  • German Chancellor Angela Merkel hosts a two-day G-20 summit in Hamburg beginning Friday. President Donald Trump will attend and is expected to hold his first meeting with Russia’s Vladimir Putin on the sidelines.
  • American employers probably added around 175,000 workers in June and wage growth probably strengthened, consistent with a solid labor market, economists project the U.S. Labor Department to report on Friday.

Main moves in Markets:

Stocks

  • The S&P 500 advanced 0.4 percent to 2,431.94 as of 12:28 p.m. in New York. The gauge rose 0.2 percent on Friday to round out its worst week since April.
  • The Stoxx Europe 600 Index increased 1.1 percent, with miners jumping 2.1 percent and banks and oil companies rising 1.8 percent and 1.3 percent, respectively

Currencies

  • The Bloomberg Dollar Spot Index rose 0.5 percent after dropping 1 percent last week and touching the lowest level since October.
  • The pound fell 0.4 percent to $1.2969 after an eight-day rally.
  • The euro slipped 0.5 percent to $1.1365.
  • The yen fell 0.9 percent to 113.34 per dollar, after erasing an earlier advance of as much as 0.4 percent.

Bonds

  • The yield on 10-year Treasuries rose four basis points to 2.33 percent after surging 16 basis points last week.
  • French and German 10-year yields both rose one basis point.

Commodities

  • Wheat jumped to a two-year high on the Chicago Board of Trade as agriculture markets soared on an expanding drought in the U.S. and disappointing data on sowed acreage.
  • West Texas crude rose 1.6 percent to $46.79 a barrel. WTI has rallied more than 8 percent over eight days, after tumbling from the year’s peak to enter a bear market.
  • Gold futures slipped 1.6 percent to $1,222.40 an ounce.
  • Most industrial metals rose after a private gauge of China’s manufacturing exceeded estimates in June.

Asia

  • Japan’s Topix rose as a survey showed confidence grew among manufacturers.
  • Hong Kong’s Hang Seng and the Shanghai Composite climbed 0.1 percent.
  • China’s bond connect program with Hong Kong will give offshore investors another way to access the mainland’s $10 trillion debt market.

 

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