The US equity market rebounded yesterday

Jens Peter Sørensen Danske Bank A/S

Market movers today

Today, we have a very light data calendar with no global market movers being released.
ECB President Mario Draghi will be speaking again, followed by Bundesbank President Jens Weidmann later in the day. They are scheduled to deliver keynote addresses at the Frankfurt European Banking Congress and markets will again watch out for any clues about ECB policy during this otherwise relatively unevent ful day.
The Netherlands is up for review by S&P. The Netherlands is ‘AAA/stable' and we do not expect any change to either the rating or the out look.

Selected market news

The US equity market rebounded yesterday as the odds of a corporate tax cut are rising after the House of Representatives passed its version of the tax bill. This is a key milestone for President Trump in changing the tax code. There are still tough challenges ahead as it needs to pass in the Senate, where the Republicans only have a two-seat majority.

The 10Y US Treasuries came under pressure on the back of the tax plan and 10Y US Treasury yields rose more than 5bp, while the USD strengthened relative to EUR and JPY.

The positive sentiment in the equity market has continued in Asia this morning with a rise in stock prices across the region.

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Author

Jens Peter Sørensen

Danske Bank A/S

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GBP/USD softens to near 1.3600 as BoE hints further rate cuts

The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling softens against the Greenback amid growing expectations of the Bank of England’s interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.

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Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.