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investingLive European markets wrap: A mixed mood in quiet trading | investingLive

Headlines:

Markets:

  • AUD and NZD lead, USD lags on the day
  • European equities slightly higher; S&P 500 futures up 0.2%
  • US 10-year yields up 3.2 bps to 4.227%
  • Gold down 0.5% to $3,365.13
  • WTI crude up 1.5% to $66.13
  • Bitcoin up 0.5% to $114,215

It was a quiet session as markets look to be settling down and trying to digest all of the recent developments since the start of August.

We saw the US close out trade deals or should I say framework arrangements to start the month alongside a dismal US labour market report after. All that before some potential for a rebound on Monday that got dashed by the more disappointing US ISM services PMI on Tuesday. And so, that’s leaving market sentiment in a bit of a limbo again now.

With a lack of key risk events, that is not helping as we are seeing mixed moves across asset classes.

The dollar is a little lower on the day, with EUR/USD testing a push of 1.1600 on the session. Meanwhile, USD/JPY is little changed at 147.52 with GBP/USD also just marginally higher by 0.1% to 1.3313 currently.

The main movers are the antipodes with AUD/USD up 0.5% to nudge back up to 0.6500 while NZD/USD is also up 0.5% to 0.5930 on the day.

The overall risk mood was a bit better after the setback in Wall Street yesterday. However, the early optimism has been tempered with a fair bit as we look towards the US open later.

European indices opened higher but have given back a modest amount of the gains with the DAX now seen up just 0.1% and CAC 40 up just 0.2%. Meanwhile, S&P 500 futures are up 0.2% but were as high up as 0.5% earlier in the session.

In the bond market, 10-year Treasury yields are also holding higher near 4.23% as the July low near 4.20% is still holding for now.

As for commodities, gold is down 0.5% to $3,365 and that erases the gains seen on Monday and Tuesday. And we have WTI crude finding some support from its 100-day moving average of $64.97 in bouncing back to erase yesterday’s losses at least for now as it climbs back just above $66.

There won’t be anything notable on the data docket in US trading later as well, so markets will be left to fend for themselves as the focus slowly but surely turns towards the US CPI report next week. It will be a bit of a wait until we get there.