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- FTSE +0.12%
- Euro Stoxx +0.47%
- Italian FTSE +0.37%
- Dax +0.51%
- CAC +0.22%
- BTC: -9.49%
The risk tone started mixed today with equities lower, yields lower, and commodities mixed alongside safe havens. The JPY started the session strongest and in a calendar light session that mood continued until mid morning.
BTC saw some selling down to key support in the $30,000 region and it looks vulnerable to stops being tripped on the break. Mining in China is down due to increasing Gov’t crackdowns and further regulation looks inevitable. Also the PBoC has summoned some banks and payment institutions regarding cryptocurrency speculation, asking banks and Alipay not to involve themselves in crypto operations. All this weighed on BTC today. Watch out for that $30,000 level today.
Commodities are trading mixed with the oil complex supported on news the US Iran nuclear deal is hitting fresh roadblocks. Copper and Iron ore still pressured as the stronger USD and questions over the reflation trade continue to weigh.
The FTSE 100 fell into key support and was supported higher as Morrisons stare price rose 30% after a failed US takeover bid. Equity futures markets moved higher as the VIX was contained under the 20 level and the stronger risk off tones from Friday slowly dissipated. The VIX started the session above 20.00, but then drifted lower and this allowed the medium term buy bias for global stocks to return. Stocks are still a ‘buy’ , but just pick your levels.
The USD will be pushed and pulled around this week on 16 Fed speaking events and 10 FOMC members. First up of note will be John Williams in the US session. He is neutral, so a bullish shift like Bullard did on Friday, will give the USD another boost higher.