Europe Summary and Highlights 11 Jun
Oil off the highs, hopes still pinned to ongoing diplomatic talks
Stocks also holding the recent lows and trying to steady
Limited net moves, ECB next focus
European morning session
Another waiting morning overall ahead of the ECB with sentiment firming from overnight jitters – the market tending to take a glass half full read on the latest military exchanges (i.e at least they didn’t radically escalate after the heated Trump comments). Not helpful of course, but the market hopes still rest on the previous reported diplomatic progress.
On that front, Reuters sources say both sides still exchanging messages over details on the MoU, with wrangling focusing on frozen funds.
Oil now -1% and -$4.5 off the highs. Likewise, equity futures come off the re-test of lows overnight and S&P future now around +0.8% for instance.
FX tending to see smaller gyrations to the noise at present and still pretty flat and wait and see in consolidation of recent action.
NOK the only real net mover, giving back yesterday’s ground on the independent gains seen after it’s CPI print (and the pullback from failed initial 11 test on EUR/NOK for instance).
Asia Session
We are still seeing missiles flying in the Middle East in the later half of the week. Trump's optimistic words earlier in the week seems to be empty air as the latest development feels more than escalation than a deal closing soon. U.S. major equity indexes are recouping partial overnight losses but regional equities are bleeding. AUD/USD is trading 0.009% higher at 0.7003. NZD/USD is trading 0.07% lower while USD/CAD rises 0.03%.
After all the bombings, Trump ordered a halt and said the coming 24 hours would be decisive for any agreement. It will be keeping market participants on their toes as such conflict remains critical in the global market. USD/JPY continues its slow grind above 160 and is trading 0.01% higher at 160.55. Else, EUR/USD and GBP/USD are up 0.07%.