Stocks Bounce, Making Yen The Weakest

Market Reviews

Stocks have recoiled, subduing the Japanese Yen, which now trades as the softest. DOW rose 302.11 points (1.31%) at 24776.59. S&P 500 grew 24.35 points (0.88%) at 2784.17. NASDAQ increased 67.81 points (0.88%) at 7756.20. Nikkei was up 1.0%. Singapore Strait Times rose 0.95%. China SSE lowered -0.15%. The Pound turned the second softest after Brexit Minister David Davis and Foreign Minister Boris Johnson resigned. Aussie trades as the firmest. Kiwi is strong as well.

At their yesterday’s meeting, Angela Merkel and Li Keqiang (Chinese Premier) expressed mutual commitment to maintaining multilateral rules-based trading system. A signed agreement suggested BASF SE opening an 100% owned chemical complex in Guangdong. German Chancellor said “this shows that China’s market opening in these areas isn’t just talk, but action.”

Mario Draghi delivered his speech at ECON committee of the European Parliament. The ECB President claimed the monetary policy steps “have been very effective”. He added members need to be “patient, persistent and prudent” to make sure inflation remains on a “sustained adjustment path”. Draghi mentioned the impact of the US trade policy, saying that downside risks to outlook “mainly relate to the threat of increased protectionism”.

Suhail al-Mazrouei, OPEC and UAE Energy Minister president stated that blaming OPEC for issues with the oil prices was “unfair”. He said: “OPEC alone cannot be blamed for all the problems that are happening in the oil industry, but at the same time we were responsive in terms of the measures we took in our latest meeting in June.” And, “there are things outside of our hand, the geopolitics as well as how much production is coming from the shale oil and Canadian sands.”

Australian NAB Business Condition increased 1 point to 15 in June. British BRC retail sales monitor was up 1.1% yoy. Japanese M2 lifted 3.2% yoy. Chinese PPI hit the 6-month maximum of 4.7% yoy and CPI grew to 1.9% yoy. Today, Britain will release the first monthly GDP report. It will additionally feature trade balance and productions. Germany will publish ZEW economic sentiment. Canada will present housing starts and building permits.