European stocks rise to 3-week highs

Resumen:

• Amplio margen de beneficios en el mercado de renta variable europea

• El EU50 toca la resistencia previa en los 3380 puntos

• La Primera Ministra británica, planeando reunirse con los líderes europeos

Se ha observado un amplio movimiento alcista en Europa con el Stoxx 50 alcanzando su punto máximo desde principios de mes. Tras su caída en la sesión de ayer, los mercados parecen haber pasado por alto el escenario de posible caos político en Italia, registrando un crecimiento aparentemente al margen de dicho riesgo. La rentabilidad de los bonos crece igualmente, mientras los metales preciosos retroceden con el oro cayendo hasta los 1500 dólares por onza una vez más. El FTSE 100 añade otros 70 puntos a su rally, con tan sólo cuatro de sus homónimos cotizando a la baja hoy.

European markets have moved above prior resistance at 3380 as they rally to their highest level in 3 weeks. Today’s closing level could be key, with a D1 candle confirmed above 3380 further supporting a break higher. Source: xStation  

Fed minutes in focus

The economic calendar is pretty sparse today with Canadian inflation data and US Oil inventories of interest to CAD and crude traders but unlikely to have an impact outside of this. This evening sees the release of the minutes from the last FOMC decision and this has the potential to cause some moves, given that the central bank cut rates for the first time in a decade at this meeting. The cut itself was well telegraphed but any insight into the discussion behind the decision and in particular the reasons for the 2 dissenters to vote against it are key aspects to watch. With the release coming less than 48 hours before the eagerly anticipated Jackson Hole speech from chair Powell, the markets will no doubt be keenly attuned to any hints as to what the next likely step will be from the Fed.    

Boris sets off on Euro trip

UK PM Boris Johnson has embarked on a trip around Europe where he will meet influential figures ahead of the G7 meeting in Biarritz this weekend. Despite the firm rebuttal of his open letter to Donald Tusk, reports of some conciliatory remarks from German chancellor Merkel has raised hopes that a way out of the current backstop quandary is possible. A swift move higher in the pound yesterday revealed just how sensitive the currency is to Brexit headlines at present and even though the move has subsequently faded, there at least seems to be the possibility of some good news in the coming days. 

The pound spiked higher by around 100 pips on Merkel’s remarks yesterday and whilst they don’t amount to a tangible breakthrough, the conciliatory tone at least seems to open up the possibility of further positive news in the coming days. Source: xStation