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European stock indices add gains
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US dollar stronger against its peers
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Better-than-expected University of Michigan report for June
European stock markets finished Friday’s session higher. The German DAX added 0.78%, the French CAC40 gained 0.83% while the British FTSE 100 was up by 0.65%. Trading has been rather mixed in the US so far. The Dow is trading slightly lower, the S&P 500 is trading flat while the Russell 2000 outperforms and gains 0.70% - to a certain extent the index is fueled by some meme stocks.
The attention is focused on the G-7 summit in Cornwall, UK. Most important headlines include a global minimum corporate tax or ending the pandemic. Today markets paid attention to a set of economic data from the UK, released in the morning European time. Industrial and manufacturing production for April came in below forecasts, while GDP figures for April were more or less in-line with expectations. UoM’s Consumer Sentiment from the US for June reached 86.4, above the consensus estimate and higher than in May. Interestingly, 1-year inflation expectations fell from 4.6% to 4.0%.
The US dollar is recovering against its peers today. The main currency pair fell towards 1.21 level while GBPUSD reached 1.41 mark. The price of gold slides amid stronger greenback. Brent and WTI push higher after IEA data showed that global oil demand may reach pre-pandemic levels in 2022. Also, Iran nuclear talks are set to resume over the weekend.
DE30 jumped during today’s session and the index is currently testing the 15,700 pts mark. Taking a look at recent price action, one can notice that the 15,515 pts level served as a support - the area coincides with the lower limit of the Overbalance structure. Breaking above the 15,611 area helped fuel the rally today. Obviously recent all-time highs may turn out to be a strong resistance. Source: xStation5
