- FOMC Minutes point out that tapering may begin at the end of the year
- European bourses finished session mostly higher
- US crude inventories fell more than expected
Most of the major European indices finished today's session in green thanks to good performance of travel and defensive stocks. On the data front, consumer price inflation rate in the Euro Area was confirmed at 2.2 % year-on-year in July , the highest since October 2018 and above the European Central Bank's target of 2.0%. The UK inflation rate slowed more than expected in July, mainly due to the base effects, but is likely to trend higher again in the next few months. On the corporate front, Carlsberg reported strong sales figures in the Q2 and lifted its full-year guidance.
US indices are trading lower following the release of the Fed meeting minutes which showed that central bankers at their July gathering made plans to pull back the pace of their monthly bond purchases likely before the end of the year. Now market attention will focus on next week's Jackson Hole Symposium during which more details may be revealed. On the earnings front, Target stock fell more than 1.5% despite strong quarterly figures, while Lowe posted better than expected quarterly earnings and raised its full-year guidance.
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Create account Try a demo Download mobile app Download mobile appWTI crude fell more than 1.5% and is trading slightly above $65.53 a barrel, while Brent is trading 1.10% lower around $68.25 a barrel despite the fact that EIA report showed US crude inventories fell by a more than expected 3.2 million barrels last week to 435.5 million barrels, their lowest since January; while gasoline stockpiles increased by 0.696 million barrels. Elsewhere gold fell 0.15% and is trading slightly above $ 1,1782.00 / oz, while silver is trading 0.75 % lower, around $ 23.45 / oz.
GBPUSD rose early in the session however buyers failed to break above local resistance at 1.3775 which coincides with earlier broken lower limit of the descending channel and pair pulled back. If current sentiment prevails, then the downward move may be extended to the support at 1.3720 or even 1.3570 level where July lows are located. Source: xStation5
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