Sterling riding a wave of good press [Video]

The global economy is settling into a newfound stability and central banks can continue to cautiously cut rates, said the OECD yesterday, but warned that the major central banks should maintain their data-dependent approach and be ‘prudent’ while cutting their rates. The UK economy will do particularly fine they said, despite the sticky core inflation on the island.

Alas, the upbeat outlook from the OECD, the rising tensions in the Middle East, the 4.5-mio barrel dive in US oil inventories last week (that pushed the US oil inventories to the lowest levels in 2.5 years) and the big stimulus measures from China did little to cheer oil investors up. US crude slipped below the $70pb again. Investors are waiting for the US GDP update, expected to confirm a 3% growth in Q2.

The S&P500 and Nasdaq consolidate near ATH levels, as Micron rallies 15% on the back of strong outlook on AI demand. The US Dollar reverses yesterday’s gains and the USDCHF consolidates near 0.85 before the Swiss National Bank (SNB) decision.