US tech stocks rallied

Market movers today

  • It is a relatively quiet day on the data front with the except ion of Sweden, where a host of different labour market indicators and new debt project ions by the debt office are due (see the Scandi sect ion next page).

  • In the US, the financial markets are cont inuing to absorb the Fed's rate hike decision last week. We will listen extra carefully to the speech by Evans (voter, dovish) today, as we think he may be one of the four FOMC members who does not expect any further hikes this year. See FOMC review: Hawkish Yellen ignores inflation and weaker data, 15 June 2017.


Selected market news

US tech stocks rallied yesterday with the Nasdaq 100 Index jumping the most since November, thereby rebounding from two weeks of declines, though not enough to recoup all of the losses that started on 9 June. Treasuries fell after William Dudley said halt ing the t ightening cycle now would imperil the US economy. The dollar rose to the highest versus the yen since 2 June, while gold slipped to a one-month low as haven demand ebbed. This morning, Asian equit ies are also higher.

Brent oil prices are more or less unchanged this morning and seem to have found a floor in recent days after a significant decline over the past month. We updated our views on the Commodit ies Market Guide yesterday.

In France, the financial markets are absorbing the strong parliamentary elect ion result for President Macron and his government , which gained absolute majority in the French Parliament on Sunday. Yesterday, stocks of French state-owned companies soared on speculat ion that Macron will seek a greater role for the private sector in these companies.

The negotiations between t he UK and t he EU's chief negot iat or kicked off yest erday. The UK seems to have lost its first bat t le with the European Union over the t imetable for Brexit talks, as the UK government gave in to EU demands to discuss the terms of its divorce – including the exit fee – before any considerat ion can begin on theIn France, the financial markets are future trade deal that Britain wants with Europe's common market . The UK government had originally hoped for parallel talks on both the ‘divorce' terms and a free trade agreement , but that demand has now been scrapped.

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