Overnight Snapshot

The Day Ahead

0800hrs UK         EU ECB Governing Council Member Philip Lane speaks in SIntra, Portugal
0830hrs UK         SW Swedish Unemployment Rate (est 6.5% vs previous 6.8%)
0900hrs UK         EU Current Account (previous €40.6bln)
0900hrs UK         EU ECB President Mario Draghi speaks in Sintra
0930hrs UK         EU ECB Executive Board Member Peter Praet speaks in Sintra
1200hrs UK         EU St Louis Fed President James Bullard speaks in Sintra
1215hrs UK         EU Swedish PM Lofven and European Council President Donald Tusk hold press conference in Stockholm
1330hrs UK         US Housing Starts (est 1314K vs previous 1287K)

Earnings from the US today include AXA Equitable Holdings, Oracle and FedEx
No major UK or European earnings

HEADLINE NEWS
: AUDI BOSS STADLER ARRESTED OVER EMISSIONS MANIPULATION
: ROCHE BUYS FOUNDATION MEDICINE FOR $2.4BLN
: UK PM THERESA MAY LOSES KEY HOUSE OF LORDS BREXIT VOTE

The Day So Far….

STOCKS: The S&P500 and Nasdaq100 registered modest falls yesterday, with the Dow falling a little further in percentage terms. However losses were well off the session lows as gains in energy shares helped stem the trade war concernsover the broader market. US President Trump said last week he was pushing ahead with tariffs on $50bln of Chinese imports, prompting a response from China who said they would impose tariffs on US goods. Boeing, a trade war proxy, fell 0.9% and was the main drag on the Dow, which closed 103.01 easier at 24987.47. Chipmakers, which rely on China for a large portion of their revenue, also lost ground as the semiconductor index lost 0.99%, its worst daily performance in a month. Intel dropped 3.4% causing the biggest drag on the S&P500 which closed down 5.91 points at 2773.75 whilst the Nasdaq100 closed 4.348 softer at 7251.41, while the broader based Nasdaq Composite tech index managed to close positive.
Global stocks were roiled amid risk-off flows as US President Trump ordered the US Trade Rep to identify an additional $200bln in Chinese goods for tariffs at a rate of 10%, this is a larger nominal amount than had been expected. A second bout of risk off flows hit after China vowed to take strong countermeasures if the US issues a new sanctions list.  The Nikkei, along with the returning Hang Seng & Shanghai Composite experienced broad losses, as did US index futures, however, Australia's ASX 200 outperformed and managed to close almost unchanged.

US TREASURYS: US Tsys have traded on the front foot amid risk-off flows as US President Trump ordered the US Trade Rep to identify an additional $200bln in Chinese goods for tariffs at a rate of 10%, this is a larger nominal amount than had been expected. - These comments had T-Notes (TYU8) testing Friday's high of 129.27+, which broke after China vowed to take strong countermeasures if the US issues a new sanctions list. Although the contract failed to test resistance at 120-00+ (High June 7).  The belly of the curve has experienced some slight outperformance.

OIL: The major oil benchmarks printed modest losses, with traders focused on the upcoming OPEC+ summit & the trade war situation. WTI futures currently 60c softer while Brent trades down 67c, at $65.25 and $74.67 respectively
Rumours continue to do the rounds regarding the size and longevity of the crude production boost that Saudi & Russia will suggest at the meeting later this week.

GOLD: Gold benefitted from the safe haven bid as US President Trump ordered the US Trade Rep to identify an additional $200bln in Chinese goods for tariffs at a rate of 10%, this is a larger nominal amount than had been expected. A second bout of risk off flows hit after China vowed to take strong countermeasures if the US issues a new sanctions list.

FOREX: - Safe havens garnered a bid as Trump upped the ante in the trade war. - USD/JPY trades below its 200-DMA, and now eyes Y109.11 (55-DMA). - AUD/USD has managed to print fresh YtD lows owing to Australia's sensitivity to China, with $0.7368 (June 2017 low) providing the next level of downside interest, although option-linked interest is noted at $0.7470-75 (A$1.63bn set to roll off at today's 10AM NY cut). The release of the RBA's June meeting minutes had no effect on the currency. - NZD/USD never threatened to challenge $0.6880 (Low May 30). - Elsewhere EUR & GBP outperformed the greenback.

Please contact ITI Capital London trading desk on [email protected] for further information or updates

For information on contact Elio Manca

For institutional sales & trading please contact Steve Farrell

For all dealing enquiries please contact our Trading Desk

Отдел аналитики