Sweden joins more hawkish chorus

Sweden joins more hawkish chorus

Mike van Dulken, Head of Research at Accendo Markets commented to clients this morning:

Equities are mixed on this US holiday-quietened session for Independence day. Oil and metals off their highs are hampering the commodity space, as USD extends its bounce. UK-focused financials are embracing potential for a UK rate rise and a takeover approach for Worldpay. GBP off its lows, however, driven by EUR weakness (disappointing EZ data) is holding back big-name defensives. On Germany’s DAX, Financials welcome yet more hawkish rhetoric (this time from Sweden’s Riksbank) but the weaker EUR is failing to help exporters. The FTSE 100 is just offside as losses for HSBC, VOD, BATS, BP, RIO, GLEN and AZN outweigh gains for WPG, LLOY, RBS, FRES and WPP. Germany’s DAX underperforms as Financials (Deutsche Bank, Allianz, Commerzbank, Munich Re) and HeidelbergCement fail to overcome broad-based weakness for two thirds of constituents, suggesting a more hawkish outlook (higher interest rates) outweighing the benefits of a EUR off its highs. The FTSE 100 remains hampered by 2-week falling highs resistance at 7370. The DAX 30 trades around 12450, consolidating a 2-day bounce. Dow Jones Futures are back from fresh record highs, but holding their rebound at 21490. Gold has bounced from 2-month lows and its channel floor at $1220.”

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