Equities shrug off weekend shock

Chris Beauchamp IG

Stocks remain remarkably calm despite the ongoing closure of Hormuz, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Stocks recover from Iran shock

Even the smallest dip continues to be an opportunity for buying it seems. What does it matter if the Straits of Hormuz remains closed, so long as the US and Iran are poised to begin talks again? Despite the gap down on the start of trading last night, equity markets continue to look towards a resolution of the conflict. This comes despite a surge in oil prices and a rise in the Vix that show market worries about the medium-term outlook refuse to go away.

UK poised for a rough week on economic data

UK unemployment is expected to rise tomorrow, and Wednesday’s inflation data is essentially a foregone conclusion. This reinforces the challenge for the Bank of England, which has to fight the urge to raise rates as the economy weathers the storm of higher prices. While the Westminster drama around Peter Mandelson might seem distant from the crisis looming over UK plc, political uncertainty could well make Threadneedle Street’s job even harder.

Author

Chris Beauchamp

Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.

GBP/USD: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

EUR/USD Price Forecast: Needs to take out 1.1600 decisively for fresh upside

The Euro (EUR) trades with caution at around Monday’s low of 1.1500 against the US Dollar (USD) during the European trading session on Tuesday. The major currency pair is expected to remain volatile as investors await key United States (US) economic release this week to get meaningful cues regarding the interest rate outlook.

Aave: Bearish RSI divergence risks a 20% drop despite steady DeFi deposits

Aave (AAVE) extends a mild near-term recovery on Tuesday, holding above its 50-day Exponential Moving Average at $90.80. Aave protocol’s V3 deployment on Monad blockchain recorded over $500 million in deposits over the last month, reflecting increased user adoption.

US JOLTs report in focus

In the US, the June JOLTs report will be in the spotlight. Job openings have increased modestly this year, which has historically predicted rising wage cost pressures ahead. June trade balance data will also be released in the afternoon and the preliminary reading pointed towards a stable trade deficit from May. The Fed's Schmid (non-voter, hawk) will be on the wires overnight.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.