On Monday, U.S. stocks and U.S. bonds were closed for a day due to the Independence Day public vacation. U.S. stock futures fluctuated slightly on the day and had fallen collectively during the day, signaling that U.S. stocks are likely to end their streak of gains on Tuesday.
Eurozone composite PMI final value in June hit a 15-year high and European stocks were led higher by the banking-led sector. Morrisons, the U.K. supermarket chain giant being vied for by more bidders, surged, pushing the U.K. mid-cap stock index to a record high. Market inflation expectations indicators moved higher as European bond yields rallied.
OPEC+ cancelled production increase talks scheduled for this Monday, with media saying Saudi Arabia and the UAE have still not resolved their differences. The unbroken impasse in the talks means OPEC+ may not continue to increase production next month. International crude oil refreshed to a nearly three-year high. In other commodities, most industrial metals, including precious metals gold and copper, are higher along with the dollar’s slight fluctuation off three-month highs.
U.S. stock futures edged lower during the session Pan-European stock indexes were up for the third straight time, led by the banking sector Morrisons powered U.K. mid-cap stocks to their biggest gain in two months
Dow futures turned up in the European stock market at lunchtime, to the European stock market has almost retracted all the gains; S&P 500 futures and Nasdaq 100 futures in the Asian and most of the time in the European market are slightly down, the largest intra-day decline of just over 0.2%.
Pan-European stock indexes rose for the third consecutive day. The Euro Stoxx 600 index closed up 0.34% at 458.36 points, a new high since June 17.
Stoke 600 sectors, only four closed down on Monday, down nearly 0.4% health care led the decline, media and technology were down more than 0.2%, food and beverage fell slightly. Up in 15 sectors, up more than 1.7% of the bank led, followed by 1.5% of basic resources and up 1.2% of travel and leisure, the bottom of the telecommunications, utilities and automotive and parts closed up less than 0.1%.
Major European stock indexes rose across the board on Monday, Britain, France, Italy and Western stocks rebounded, erasing Friday’s losses, the United Kingdom announced that it plans to end the mandatory requirement to wear masks and social isolation on July 19, the British stocks rose. German stocks closed slightly higher, the bottom of the gainers among countries, but rose for three consecutive days.
Among individual stocks, Morrisons, the fourth-largest supermarket chain in the U.K., closed up more than 11.5%, hitting a new eight-year high. Morrisons just agreed to a 6.3 billion pound takeover offer from a syndicate led by U.S. investment fund Fortress on Saturday, and private equity firm Apollo became the third interested bidder, saying on Monday it was considering a possible bid. Boosted by Morrisons, the FTSE 250, the U.K.’s mid-cap index, closed up about 1.2% on Monday, a record high and the biggest gain in two months.
European bond yields rebounded as market forward inflation expectations hit a seven-week high
Five-year forward inflation swaps, an indicator reflecting market expectations for five-year inflation in five years, rose to 1.606 percent on Monday, a new high since May 19.
European Treasuries retreated in price on Monday as yields recovered. British 10-year benchmark Treasury yields rose 1.1 basis points to 0.714% during the day; German bund yields rose 2.5 basis points to -0.210% during the same period; Italian bonds rose more than 3 basis points during the same period, leading the rise in the countries.
This is the European bond yields in the last week after a sharp decline back up. German bond yields fell by more than 8 basis points last week, the largest single-week drop since December last year. Analysts attributed the decline in yields to the threat of the Delta virus to the economic recovery and dovish expectations that the ECB will remain accommodative.
However, the commentary noted that analysts believe that last Friday’s U.S. non-farm payrolls report failed to move investors away from their preference for the safety of fixed-income products, and European bond yields are expected to resume their downward trend.
Brewer’s oil rises above $77 for the first time in nearly three years
International crude oil futures rose collectively. Brent crude oil rose above $77 for the first time since October 2018, extending intra-day gains to more than 1%, after news broke that OPEC+ cancelled Monday’s talks, during the European midday session; U.S. WTI crude oil regained $76, also setting a new high in almost three years, rising more than 1% intra-day.
Brent September crude oil futures closed up 1.30% at $77.16/barrel, with the main contract closing above $77 for the first time since October 29, 2018, following a rise above $76 on Friday to set a new closing high since late October 2018.
U.S. oil is expected to close Tuesday at a new high since early October 2018 set last Thursday.
Dollar index edges away from three-month highs Bitcoin pushes under $33,000 intraday Ether falls 10% at one point
The ICE Dollar Index (DXY), which tracks the exchange rate of a basket of six major currencies of the U.S. dollar, had risen above 92.30 to set a new daily high during the Asian session and before the European session, up more than 0.14% during the day, European shares turned lower in early trading, and had turned up briefly in the afternoon session, European shares fell slightly after the session and were above 92.20, clearly moving away from the new intraday high set since early April, which rose above 92.70 on Friday.
The Bloomberg Dollar Spot Index also fluctuated slightly on Monday, almost unchanged from its level at Friday’s close.
Bitcoin (BTC) continued its downward spiral, with European shares falling below $33,200 after the bell to a new three-day intraday low since Friday, down more than $2,000 from the early Asian intraday high, a percentage drop of nearly 8%, before the decline narrowed to nearly $34,000 at 4:00 BST when U.S. shares closed on the previous day, down more than 3% in the last 24 hours.
Ether (ETH), the second largest cryptocurrency after Bitcoin in terms of market capitalization, fell below $2,160 at one point in the European stock market after hours, also refreshing the intraday low in three days, calling the intraday high in the early Asian market down nearly 10%, and was above $2,200 at the close of the U.S. stock market, down more than 4% in 24 hours.
CoinMarketCap data shows that mainstream cryptocurrencies fell on Monday, and by the time U.S. stocks closed on previous days, Dogcoin (DOGE), the sixth largest cryptocurrency by market capitalization, had fallen more than 5% in the last 24 hours, while the seventh and 13th largest cryptocurrencies Ripple (XRP) and Litecoin (LTC) fell more than 4%, the 12th largest cryptocurrency Bitcoin Cash (BCH) fell nearly 4%, and the fourth and fifth largest cryptocurrencies, BNB and Cardano (ADA), fell more than 2%.
Copper hits $9,500 for the first time in nearly three weeks, tin hits a 10-year high, aluminum falls to more than three-year high, gold approaches $1,800 intraday
Most London base metal futures rose on Monday, with copper and nickel rising for two days in a row, with copper closing at $9,511 per tonne, the first time since June 16 to close above $9,500; nickel hit a one-week high. Lun tin rose for three days in a row, closing a new June 14 rose above $31,600 set a new ten-year high. Lunzinc ended a two-day losing streak. However, aluminum and lead fell, with aluminum falling off the more than three-year high set on Friday and lead falling slightly after approaching a nearly three-year high.
New York gold futures continued to move up, COMEX August gold futures in the European stock market had approached the $1,800 mark, up more than 0.7% during the day, Tuesday is expected to close up for the fourth consecutive session, and is expected to close on $1,800 for the first time since June 16.