investingLive European markets wrap: Calm after the storm | investingLive
Headlines:
Markets:
- GBP leads, CHF lags on the day
- European equities higher; S&P 500 futures up 0.6%
- US 10-year yields up 1 bps to 4.226%
- Gold up 0.1% to $3,367.74
- WTI crude down 1.8% to $66.10
- Bitcoin up 0.25 to $114,431
After the chaotic mess on Friday, markets are seeking a bit of a breather and calm air to start the new week.
Fed rate cut odds have repriced and settled down now while equities are looking to turn the mood from “terrible jobs data means the economy is in trouble” to “terrible jobs data means the Fed will cut rates soon”. The latter said with some elation of course.
That’s putting stocks in a good mood in Europe with major indices in the region bouncing back by over 1%. This comes as US futures are also seen paring declines, with S&P 500 futures now up 0.6% as tech shares lead the charge. All of the Magnificent 7 shares are up in pre-market as investors are sticking with the dip buying mentality it would seem.
In FX, things were more muted as the dollar keeps a little steadier after being washed out on Friday. EUR/USD is marginally lower by 0.1% to 1.1568 as large option expiries keep price action intact for today. Meanwhile, USD/JPY bounced around but is now back near flat levels at 147.45 with the high earlier briefly clipping the 148.00 mark.
The commodity currencies are flattish, so there’s not much in it. The laggard on the day though is the franc as Swiss markets return following the long weekend. USD/CHF is up 0.4% to 0.8075 on the day.
Elsewhere, bond yields are also keeping steadier but have largely pared the early move up today. 10-year yields are now just up 1 bps to 4.225% after having extended to as high as 4.257% earlier in the day. That’s keeping broader sentiment in check for a bit, especially USD/JPY.
Besides that, gold is holding steadier as well after the jump on Friday as the bulls look interested to try and make another run at the June and July highs above $3,400 before the end of summer.