Europe Summary and Highlights 7 Jul
USD/JPY sees a little profit-taking on the post holiday bounce
Generally quiet, tech stocks a little lower following Kospi, oil a touch higher on hazards
European morning session
Marginal risk-off skew if anything, but largely a quiet, sideways morning. USD/JPY drifts off its post-holiday recovery highs to be consolidating below 162 and inside Monday’s bar.
Tech stocks off modestly, Nasdaq future -0.9%, following a lively session for the Kospi, selling off with the strong Samsung guidance.
Front month oil up around $1 as it consolidates clear of $70, slightly lifted by the frictions after Iran reportedly fired missiles at a couple of tankers last night.
UK Halifax house prices 0.2%m/m (mkt 0.1%), 0.6y/y from 0.5 (mkt 0.8%).
German industrial production 0.9%m/m from 0.4% vs mkt 0.2%, pulling the yr/yr rate positive.
Asia Session
There is no boring day in the Strait of Hormuz as we heard Iranian forces strike LNG tanker and commercial ships within the Strait. It is a gesture to show Iranians exerting further control over the Strait of key oil traffic. Major equity indexes slips while oil is upbeat. AUD/USD is trading 0.3% lower at 0.6936. NZD/USD is trading 0.24% lower while USD/CAD rises 0.11%.
The May Labor Cash Earnings continue to grow steadily at +3.2% y/y. It stays solid above 2% but missed estimate. Household spending on the other hand, rebounded strongly to 3.7% m/m, a good sign for private consumption. USD/JPY is trading 0.15% lower at 161.83. Else, EUR/USD is down 0.09% and GBP/USD is down 0.07%.