Economic Data
- (PT) Portugal May Current Account Balance: -€409.4M v -€164.2M prior- (US) Jun Chicago Fed National Activity Index: 0.12 v 0.18e
- With little in the way of major earnings or economic data to distract markets, the situation in eastern Ukraine remains the major focus this morning. The western powers pushed their strong thesis that pro-Russia separatists shot down Malaysia Airlines flight MH17, while Moscow outlined data they said suggests Ukraine had a hand in shooting down the plane. Gold and commodities aren't moving too much on the tensions, but the 10-year UST yield has dropped to 2.450%, down 3 bps today. The DJIA is down 0.67%, the S&P500 is down 0.44% and the Nasdaq is down 0.54%.
- EUR/USD managed to hold above the January low of 1.3477 last week and during the European session the pair traded as high as 1.3550. Some FX analysts believe geopolitical tension could leave the EUR vulnerable, especially as EU foreign ministers prepare to meet on Tuesday to discuss and possibly decide on more sanctions against Russia. Yield differentials are also hinting that EUR could come under fresh pressure, given that the German 10-year yield is probing all-time lows.
- Oil services name Haliburton saw solid growth in its second quarter. Revenue topped expectations and earnings were in line. Halliburton said that its income from operations in the eastern hemisphere, which includes its Middle East/Asia and Europe/Africa/CIS groups, grew by 26% sequentially and the company expects full-year growth in the low double-digits. Shares of HAL are up 1%.
- Shares of utility Gas Natural are up sharply this morning. On Friday, the company disclosed that it had received three approaches from Algonquin Power & Utilities, which holds a 4.9% stake in the company. Gas Natural this morning rejected the final $13/shr offer from Algonquin and highlighted its statement from a week ago that the board is not actively engaged, nor plans to be, in a process to sell the Company.
Looking Ahead
- 11:30 (US) Treasury to sell $48B in 3-Month and 6-Month Bills- 19:25 (AU) RBA's Debelle speaks on panel in Sydney
- 23:00 (AU) RBA's Stevens speaks in Sydney
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Editors’ Picks
EUR/USD rises toward 1.0700 after Germany PMI data
EUR/USD gains traction and rises toward 1.0700 in the early European session on Monday. HCOB Composite PMI in Germany improved to 50.5 in April from 47.7 in March, providing a boost to the Euro. Focus shifts Eurozone and US PMI readings.
GBP/USD eases below 1.2350, UK PMIs eyed
GBP/USD is dropping below 1.2350 in the European session, as the US Dollar sees fresh buying interest on tepid risk sentiment. The further downside in the pair could remain capped, as traders await the UK PMI reports for fresh trading impetus.
Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets
Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.
PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange
Pendle is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin price.
Focus on April PMIs today
In the euro area, focus today will be on the euro area PMIs for April. The previous months' PMIs have shown a return of the two-speed economy with the service sector in expansionary territory and manufacturing sector stuck in contraction.