Europe catches a bid as tech worries resurface

Ipek Ozkardeskaya ipekScope

Oil prices continue to fall on the back of encouraging news regarding the peace deal that the US and Iran are trying to engineer. Encouraging, in the sense that Iran says it has made ‘major progress’ during the negotiations of the past few days.

As a result, US crude slipped below its 200-DMA (near $74.80) and continues to extend losses below this level this morning.

The latter pulled European yields lower on expectations that a sustainable decline in oil prices should tame inflationary pressures and reduce the need for further European Central Bank (ECB) tightening. ECB President Christine Lagarde also said that euro area inflation is expected to return toward the 2% target over the medium term, helping to temper fears that the ECB could enter a fresh tightening cycle that would hurt growth. The ECB is expected to hike once more this year, but that is already largely priced in.

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Author

Ipek Ozkardeskaya

ipekScope

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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