Daily summary: Commodity markets slide, EURUSD at 4-month lows

• European and US stocks mixed

• Oil prices tumble amid further alarming headlines from China

• Gold and silver prices declining heavily

• EURUSD at 4-month lows

Monday’s session was relatively calm in terms of economic prints. However, inflation data from China turned out to be higher-than-expected, which is another worrying signal from the second-largest economy. Also, JOLTs report from the US topped expectations, indicating that the US economy faces significant labour supply constraints. 

Commodity markets tumbled as disturbing news have been mounting up recently. Oil and copper prices fell heavily amid weaker economic data from China and new Covid-19 restrictions in Beijing. Gold and silver prices experienced a flash crash and even though some losses have already been erased, both metals are trading significantly lower on the day. 

Meanwhile, global stock markets hold up pretty steadily. Major European indices finished the day mixed with the German DAX (DE30) declining by 0.10% and the British FTSE 100 (UK100) adding 0.13%. The pan-European STOXX 600 gained 0.21%. Equity benchmarks from the US are trading slightly lower except for Nasdaq100 (US100). US 10 year Treasury yield climbed towards 1.32% in the evening.

As far as FX markets are concerned, the US dollar is strengthening against its major peers. EURUSD fell to 1.1740, lowest levels since early-April. Cryptocurrencies are gaining momentum, with Bitcoin climbing above $45,000. Tomorrow investors are set to shift their attention towards ZEW indices from Germany for the month of August (10 am BST). 

The US dollar continues to strengthen against the euro. The main currency pair dropped below 1.1750 and fell to lowest levels since early-April. Should the current sentiment prevail, the pair could potentially tank towards 1.1700 mark. As a matter of fact, investors await one big release this week - CPI inflation for July from the US (Wednesday, 1:30 pm BST). The data could have a tremendous impact on the dollar. Source: xStation5