Another day another deal

14 July, 2015

As far as the single currency was concerned, the celebrations were all too brief after the Greek deal yesterday. The lifting of the near-term uncertainty allowed stocks indices to gain in Europe by 1-2%, but the impact on bond yields in other peripheral markets (e.g. Italy) was more transitory, with the initial declines having been unwound by midday. You can read more on our take on the deal in our blog, Greece will be back. We start today with a different deal, this time with regards to Iran and the talks that have been over-shadowed by Greece for the past 2 weeks. Iran has agreed to halt its nuclear program in return for the lifting of sanctions. As news emerged of this at the start of the European session, the oil price fell, by around 2% on the front Brent crude contract as the market anticipates more supply ahead. At the margins, this news will prove to be dis-inflationary, so putting less pressure on the Fed to tighten rates this year.

Elsewhere, the UK inflation data today will be a welcome distraction, with the headline rate seen falling back down to 0.0%. Cable has softened from the highs close to 1.56 seen yesterday, but there is little expectation that stronger numbers could shift the thinking of the Bank of England, with rates seen on hold for the remainder of the year. Later on, there is some interest with the ZEW survey, released at 09:00 GMT. US retail sales data are seen rising a modest 0.3% when the June data is released at 12:30 GMT. Looking ahead, there is a raft of China data released overnight, including GDP, industrial production and retail sales, which will be closely against the backdrop of the recent fall in stocks.


Source link  
All Eyes on Central Banks

Markets were, for the most part, little changed on Wednesday as traders waited for today’s Bank of Japan and ECB rate decisions. Earlier today...

Dollar Bears

UK Consumer Price Index (CPI) data was released on Tuesday showing inflation easing for the first time in nearly 10 months, retreating from the near 4-year high touched in May...

More Record Highs for Equities?

Early indications from Asia this morning are pointing towards a strong day for global equities, continuing the momentum from last week...


US Data brings on USD bulls

U.S. job growth surged more than expected in June and employers increased hours for workers, with signs of a labor market strengthening that is likely...

Biggest Quarterly Drop in 7 Years

USD recovered marginally on Friday, but had its biggest quarterly decline against several currencies in nearly 7 years following hawkish signals...

Markets look to Central Bankers

Asian Equities traded higher on Tuesday approaching near two-year highs on Tuesday as USD strength helped exporters...


Global Economic Optimism Continues

Global equities moved higher on Monday as optimism continued to improve on global economic growth. However, USD...

BOJ Monetary Policy Remains Steady

The Bank of Japan maintained their monetary policy on Friday whilst upgrading their assessment of private consumption...

Final Confirmation for a June Rate Hike

The crucial US labour market data for May will be released today, June 2nd at 13:30 BST. It includes non-farm payrolls...

  


Share: