Market movers today
A light global calendar today with focus likely to remain on the geopolitical tensions. Both US and Europe are increasing the pressure on Russia following the MH17 crash. European leaders are calling for ‘immediate, unconditional and secure access for international experts’ to the plane wreckage and to begin the recovering of remains. The dispute on who was behind the downing of the MH17 is ongoing. Financial Times writes that intelligence information suggests it was pro-Russian separatists and Russian military personnel -and that it was by mistake. Further sanctions on Russia could follow this week, see Russian-Ukrainian crisis takes a tragic turn, 18 July.
The main releases in Europe this week are the flash PMIs on Thursday and Ifo on Friday. Leading indicators have recently been casting doubt on the strength of the recovery. Money supply and lending growth data from ECB will attract more than usual attention on Friday as the lending growth data will determine how much banks can take on the second stage of the TLTROs. For more on the technical details of the TLTROs see ECB research: Draghi reveals favourable TLTRO details, 4 July.
In the US the focal points this week are inflation data on Tuesday, new home sales data on Thursday and durable goods orders on Friday. The US labour market has been strengthening and with inflation on the rise, these prints will be increasingly in focus.
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