US stocks looking strong as Q2 comes to an end

Chris Beauchamp IG

European stocks have stumbled today but their US counterparts are holding up well on the final day of Q2 trading, Chief Market Analyst at online trading platform IG.

Europe falters but Wall Street keeps rallying

A wide gulf has opened between European stocks and their US counterparts today, as the final trading day of the quarter arrives. While US stocks have Fed cuts and the likely passage of the budget bill to look forward to, European names continue to fret about a possible trade showdown with the US. It’s never wise to read too much into the movements at quarter-end, and the lack of news flow only compounds the problem.

Stocks look back on a choppy quarter

Equity markets, and investors themselves, have been on a remarkable journey in Q2. From the terrifiying lows of April to the dizzying heights of the past week, the rebound has caught many by surprise. As we head into Q3, investors are still fretting about inflation and a possible recession, but these threats seem much less imposing than they did three months ago.

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Chris Beauchamp

EUR/USD turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.