Friday 3rd July: European Open Briefing

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Global Markets:

  • Asian stock markets: Nikkei down 0.25 %, Shanghai Composite lost 3.25 %, Hang Seng fell 0.20 %, ASX declined 1.25 %
  • Commodities: Gold at $1166 (+0.25 %), Silver at $15.60 (+0.25 %), WTI Oil at $56.70 (-0.40 %), Brent Oil at $61.95 (+0.20 %)
  • Rates: US 10 year yield at 2.39, UK 10 year yield at 2.07, German 10 year yield at 0.85

News & Data:

  • China HSBC Services PMI 51.8, Expected: 53.8, Previous: 53.5
  • Australia Retail Sales 0.3 % m/m, Expected: 0.5 %, Previous: -0.1 %
  • Australia AIG Services Index 51.2, Previous: 49.6
  • Greek Banks Limp Until Vote In Hope For ECB Salvation On Monday, Liquidity Reserves Will Probably Only Last Until Monday — BBG
  • Eurogroup Plan Meeting On 7 Jul, Euro Area Leaders To Meet On 8 Jul — BBG
  • Asian stocks slip as China rout intensifies, dollar weak – RTRS
  • Oil prices drop on rising US rig count, China stock market probe – RTRS
  • IMF warns of huge financial hole as Greek vote looms – RTRS

Markets Update:

Overnight, the Australian Dollar declined from 0.7640 to a low of 0.7566 after disappointing Australian retail sales data, followed by a weaker than expected Chinese Services PMI print. The pair has bounced from there, but is still struggling to reach the 0.76 level. The Shanghai Composite Index had again a very volatile session and is currently down more than 3 %. Chinese authorities have announced that they will launch a stock market probe for possible market manipulation. The other major pairs were all stuck in a very tight range overnight. US markets will be closed for a holiday, so volatility could be lower than usual. If you are holding any EUR positions, keep in mind that there is the Greek referendum on Sunday and we might see again a large gap at the Sunday open.

Upcoming Events:

  • 08:45 BST – Italian Services PMI
  • 08:50 BST – French Services PMI
  • 08:55 BST – German Services PMI
  • 09:00 BST – Euro Zone Services PMI
  • 09:30 BST – UK Services PMI
  • 10:00 BST – Euro Zone Retail Sales


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