{"id":108518,"date":"2017-07-05T07:15:55","date_gmt":"2017-07-05T11:15:55","guid":{"rendered":"http:\/\/countingpips.com\/?p=108518"},"modified":"2017-07-05T06:58:57","modified_gmt":"2017-07-05T10:58:57","slug":"geopolitical-tensions-dent-market-sentiment","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/07\/geopolitical-tensions-dent-market-sentiment\/","title":{"rendered":"Geopolitical tensions dent market sentiment"},"content":{"rendered":"
July 5, 2017<\/div>
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By IFCMarkets<\/a><\/p>\n

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Investors await Fed minutes<\/h2>\n<\/div>\n<\/div>\n

US markets\u00a0<\/b>will reopen today after Fourth of July holiday. The dollar was little changed: the\u00a0live dollar index<\/a>\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, inched 0.06% higher to 96.25. Investors await the Federal Reserve minutes due today at 20:00 CET for guidance on policy makers\u2019 positions on continuing interest rate hikes this year and more details on plans for reducing the Fed\u2019s holdings of US government bonds. US factory orders for May are due at 16:00 CET, outlook is negative for dollar.<\/p>\n

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The technology sector is experiencing a jump in volatility driven by concerns that large-cap technology stock valuations are overstretched. Financial sector posted 0.7% gains after 34 biggest US banks passed the Federal Reserve\u2019s stress test, with the Fed saying the country\u2019s biggest banks have \u201cstrong\u201d levels of capital and would be able to keep lending even during a severe recession. Bank shares were helped also by a rise in Treasury yields. The upgrade of the Q1 GDP to 1.4% from the second estimate of 1.2% didn\u2019t lift the sentiment sufficiently to turn the direction of trades.<\/p>\n<\/div>\n<\/div>\n

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European markets retreat<\/h2>\n<\/div>\n<\/div>\n

European stock indices\u00a0<\/b>ended lower on Tuesday as North Korea\u2019s missile launch undermined market sentiment. Both the\u00a0euro\u00a0<\/em>andBritish Pound\u00a0<\/em>extended losses against the dollar. The Stoxx Europe 600 fell 0.3%. Germany\u2019s\u00a0DAX 30\u00a0<\/a>lost 0.3% closing at 12437.13. France\u2019s\u00a0CAC 40<\/em>\u00a0retreated 0.4% and UK\u2019s\u00a0FTSE 100\u00a0<\/em>slipped 0.3% to 7357.23. Markets opened 0.1% lower today.<\/p>\n

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Trading was light as markets were closed in US for the Independence Day holiday. In economic news the 0.4% drop in euro-zone producer prices in May was bigger than an 0.2% expected decline. Growth in the UK construction sector slowed in June: the construction purchasing managers index fell to 54.8 from 56 in May. And Sweden\u2019s Riksbank said it\u2019s now \u201cless likely\u201d than previously to cut rates as inflation has been higher than expected.<\/p>\n<\/div>\n<\/div>\n

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Asian markets rise<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b>\u00a0are mostly higher today following a subdued session on Tuesday after North Korea missile test.\u00a0Nikkei\u00a0<\/em>gained 0.25% to 20081.63 despite a stronger yen against the dollar. Chinese stocks are up as investors shrugged off weaker than expected data: Caixin services purchasing managers’ index (PMI) fell to 51.6 in June from 52.8 in May, signaling slowing of services sector growth. TheShanghai Composite Index\u00a0<\/em>is 0.7% higher and Hong Kong\u2019s\u00a0Hang Seng Index\u00a0<\/em>is up 0.6%. Australia\u2019s All Ordinaries Index is down 0.3% as Australian dollar rebounded against the greenback.<\/p>\n

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Oil remains below $50<\/h2>\n<\/div>\n<\/div>\n

Oil futures prices\u00a0<\/b>are steady today, trading below $50 a barrel. Oil prices declined on Tuesday on expectations of a weekly drop in US crude oil inventories. A rise in OPEC supplies weigh on outlook after a report OPEC exported 25.92 million barrels per day (bpd) in June, 450 thousand bpd above May. Russia opposes any proposal to cut output further and wants to continue with the current deal with government officials saying any further supply curbs would send the wrong message to the market. September Brent crude fell 0.1% to $49.61 a barrel on London\u2019s ICE Futures exchange on Tuesday.<\/p>\n

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Note:
\nThis overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or \u0430 recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.<\/p>\n","protected":false},"excerpt":{"rendered":"

By IFCMarkets Investors await Fed minutes US markets\u00a0will reopen today after Fourth of July holiday. The dollar was little changed: the\u00a0live dollar index\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, inched 0.06% higher to 96.25. Investors await the Federal Reserve minutes due today […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-108518","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/108518","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=108518"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/108518\/revisions"}],"predecessor-version":[{"id":108523,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/108518\/revisions\/108523"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=108518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=108518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=108518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}