Daily summary: Global stocks rebound from Monday's slump

7:20 PM July 20, 2021
  • Indices rebound after yesterday’s rout
  • US 10Y Treasury yield hit fresh 5-month low
  • Bitcoin fell below $30,000

European indices finished today's session in green, rebounding from yesterday's steep sell-off. Investors digested a batch of earnings reports while recent data showed the sharpest increase in German producer prices since 1982, adding to concerns about rising inflation. On the earnings front, UBS posted strong quarterly profit and Alfa Laval's core profit topped analysts' estimates while home appliances maker Electrolux posted disappointing second quarter figures. 

US indices also moved sharply higher as investors stepped in to buy the dip from the Dow Jones Industrial average’s worst day in eight months. The yield on the benchmark US 10-year Treasury note briefly touched a new 5-month low of 1.13% as concerns are mounting over rising inflation and slowing global growth as the coronavirus delta variant spreads rapidly and countries tighten restrictions. Earnings from IBM and Philip Morris beat market expectations while Netflix Inc, United Airlines and Chipotle will provide their quarterly figures after market close. Meanwhile, a gauge of housing starts in the US showed a 6.3% increase in June while building permits declined 5.1%.

WTI crude rose more than 1.00% and is trading above $67.00 a barrel, while Brent is trading  0.90% higher around $69.25 a barrel. Elsewhere gold erased most of the early gains and is trading flat around $ 1,810.00 / oz, while silver lost 1.00 %. Bitcoin dropped below major support at $30,000 for the first time since June 22nd amid growing tensions between the US and China on cyber-crime.

Gold jumped above $1820, early in the session however buyers failed to uphold momentum and price fell again below the lower limit of the ascending channel and two moving averages. If current sentiment prevails, then support at $1800 may be at risk. Source: xStation5

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