Market movers today

Markets will keep an eye on US-China headlines, after tensions between the two countries heated up again yesterday with China sanctioning some US officials in retaliation for the Hong Kong dispute. Investors also still await clarity on the timeline of the US stimulus package.

Today’s data highlight will be the German ZEW survey for August. The ZEW has staged a quick rebound in recent months and the widening current situation expectations spread bodes well for a continued recovery in economic activity in August. That said, there might be limited scope for a further uptick in the expectations component, given signs of plateauing in high frequency data and the latest rise in COVID-19 cases.

- advertisement -

Also on the calendar are the UK jobs report for June, while San Francisco Fed President Daly will take part in a virtual discussion late in the evening.

Selected market news

Positive risk sentiment has set the tone in markets to start the week. Equity and commodity markets gained on Monday, a move that largely continued overnight. Yields climbed higher, with the 10Y US yield rising to the highest level since late July. Finally, the US has seen a small rebound, taking EUR/USD below 1.18 again.

US President Donald Trump said overnight that he is “very seriously” considering a capital gains tax cut to help job creation. Another executive order, this time on capital taxation, would likely face legal challenges as it is pushing the boundaries of the President’s executive powers.

China said yesterday that it will sanction 11 Americans in retaliation for US sanctions announced on Friday, targeting “those individuals who behaved badly on Hong Kong related issues”. The list includes Senators Macro Rubio and Ted Cruz.

Property prices in Denmark continue to climb according to the latest data from House prices rose 1% m/m (3M m.a.) in July, taking them to a new all-time high, while apartment prices increased 2.3% m/m (3M m.a.), back above pre-corona crisis levels.

Previous articleRBNZ Decision Due On Wed
Next articleSterling Rises Even As UK And Japan Trade Talks Stall
This publication has been prepared by Danske Markets for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Markets´ research analysts are not permitted to invest in securities under coverage in their research sector. This publication is not intended for private customers in the UK or any person in the US. Danske Markets is a division of Danske Bank A/S, which is regulated by FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange. Copyright (©) Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.