European stocks tread water at start of data rich week

European stock markets are showing barely any sign of life with the FTSE notching up 0.3% and the DAX sliding 0.4% this morning. Some of the malaise was created by the stronger than expected jobs report in the US Friday which doused hopes that the Fed would cut rates at some point in July. 

Imperial Brands rallied the most on the main index after the company decided to revise its dividend policy amid a GBP 200 million buyback.

Sterling barely in the black ahead of UK GDP data

Having declined for nine consecutive weeks the pound is starting the new week on an indecisive note, trading almost flat against both the dollar and the euro. 

German exports increased in May but this was not enough to lift the euro because the May uptick of 1.1% barely made a dent in the April exports decline of 3.4%. 

Sterling traders are now looking to Wednesday when the UK industrial production, manufacturing and most crucially monthly GDP data is expected to confirm the fragile state of the UK economy.

For the dollar Fed Chairman Jay Powell's testimony to Congress on Tuesday will be key, particularly after Friday’s stronger than expected jobs report quelled expectations that a Fed rate cut is imminent.

Now that OPEC has greenlighted the extension of the existing production cuts the oil market is beginning to turn lower with focus shifting back onto global trade risks.

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

The markets are moving. Stop missing out.

OPEN AN ACCOUNT