Overview
- Commodity stocks recover, supporting a bullish sentiment in global equities
- Brent oil tumbles below $62
- Dollar remains flat ahead of key monetary policy speakers
European Markets
European stocks grasp onto gains for the first time in eight sessions, led by advances in financial services and building stocks.
The recent correction in stocks can be pinned to investors rushing to take-profits amid a steady year of mostly uninterrupted advances. Stocks have been steadily rising this year coupled with historically low volatility measurements.
Energy stocks are finding momentum after a heavy sell off. The bullish tones have been inspired by a rebound in commodity prices.
The recovery in energies has eased investor anxiety, pushing global equities higher. Investors are searching for a reason to plunge more buy-side bets into stock markets, as a mixed European earnings season gave little cause for optimism.
The euro has shed some of yesterday’s gains, where the single currency was trading at $1.18. The shared currency left behind 0.19% of its gains so far as investors await tomorrow’s speech from European Central Bank leader Mario Draghi.
The pound is gaining traction after retail sales showed a 0.3% increase, beating forecasts of 0.1%.
Additionally, it has been reported that German chancellor, Angela Merkle, is wary of pushing British Prime Minister Theresa May too far in the Brexit negotiations.
London’s index, the FTSE 100, has added 0.18% to its value. Gains were capped for the index thanks to the stronger pound.
US Markets
The dollar is flat against a basket of its peers, as investors await clarity on US tax reform.
US investors will be watching the unemployment claims due out later today, and will be listening closely Fed members Kaplan and Brainard speeches which will take place later this evening.
Global growth remains strong while US earnings forecasts are robust, this is underpinning the resilience in US stocks.
Wall Street has added 0.34% to its gains as investors look onto today’s House leaders vote on their tax reform bill.
Commodity Markets
The overall improvement in stock market sentiment has weighed heavily on safe-haven assets, including gold. The precious metal has dropped to $1278, although inching slightly upwards thanks to the softer dollar.
Oil has been oscillating from gains to losses. Brent oil, the international benchmark, is trading under $62 per barrel, after losing 0.45% of its value so far today. The US benchmark, crude oil, has shed 0.18% of its gains, trading at $52.20 per barrel.
Natural gas storages are due out later today, which could give a fresh perspective to energy markets.
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