Just as nerves subsided from last week’s political controversies in Washington, investors were faced with a terror attack in Manchester. Safe-havens like the yen and gold rose as investors favoured a cautious approach.
Gold
Haven assets like gold are stronger as investors seek refuge in times of uncertainty. Gold is up 0.1%.
Currencies
EUR
The euro is flirting with its highest level since November as investors digest German GDP data, which grew 0.6% in the first quarter.
Flash manufacturing PMI came in at 57, surpassing expectations of 56.5. This leading indicator paints a picture of an expanding economy.
The euro is up 0.1% against the dollar. The currency pair is less than 60 pips away from the intraday high it touched back in November when Donald Trump was elected president.
USD
The greenback is suffering its eighth decline in nine sessions as investors fear the Federal Reserve may not raise rates as aggressively as previously thought.
The Fed will release the minutes of its latest meeting tomorrow.
JPY
The attack in Manchester has spurred a rally in safe-haven assets. The Japanese Yen has inched upwards as investors hedge their riskier bets. The yen is 0.2% firmer at ¥111.26 against the dollar.
Indices
DAX 30
Germany’s Dax 30 – the index known as Europe’s proxy – has been lifted by the positive economic data released earlier this morning.
US Equities
Investors are attempting to shrug off last week’s political controversies from Washington. Political turmoil has distracted investors from global economic growth.
The US president asked Director of National Security and NSA Director Michael Rogers to deny the existence of any affiliation between the Russian government and Trump’s campaign. As a result, investors grew wary of Trump’s possible impeachment.
This morning, US equities are taking ques from Europe, rising in this morning’s trading session. However, traders beware as sentiment could change once the US opening bell rings.
Commodities
Oil
After two weeks of gains, oil is pulling back.
Brent Oil
Russian and Saudi Arabian energy ministers advocated the extension of supply cuts lifting Brent oil to a four-week high of $54.37 dollars.
Now, the international benchmark has shed some of those gains, at $53.32 in the run up to OPEC’s meeting on Thursday.
Crude Oil
Similarly, crude oil has pared some of its gains at $50.67. However, still above that psychological of $50 as investors await confirmation from OPEC’s meeting.
