investingLive European markets wrap: Dollar breather as markets settle down after Friday | investingLive
Headlines:
Markets:
- AUD leads, JPY lags on the day
- European equities lower; S&P 500 futures down 0.2%
- US 10-year yields up 1.9 bps to 4.277%
- Gold down 0.1% to $3,369.57
- WTI crude up 0.6% to $64.15
- Bitcoin down 2.1% to 111,130
With it being a UK holiday, it was a quieter session in Europe as we traders and investors are not following through on the Friday moves.
Markets are still digesting a more dovish Fed Powell but have not gotten too carried away in running away with a rate cut for September. Fed funds futures show just ~83% odds of a 25 bps rate cut, with the US jobs report on 5 September set to be the be all and end all in confirming the central bank decision.
That is seeing the market action on Friday pull back just a slight bit to start the new week. The dollar is a little firmer with EUR/USD down 0.1% to 1.1698, hugging large option expiries at 1.1700. Meanwhile, USD/JPY is up 0.3% to 147.30 while GBP/USD is down 0.1% to 1.3513 on the day.
In the equities space, European stocks are looking a little sluggish with month-end just around the corner. That comes as US futures are also looking fairly tentative awaiting Wall Street’s return from the weekend. S&P 500 futures are down 0.2% following the stronger gains at the end of last week.
Elsewhere, Treasury yields are a little higher while gold is also not doing all too much and is trading flatter after being down a little earlier in the session. Cryptos are starting to intrigue further at least with Ethereum down nearly 4% in yet another rejection of the $4,800 level while Bitcoin is nearing $110,000 and threatening a drop below its 100-day moving average for the first time since April.