Market Headlines 14/7/2017
- US equities rose within touching distance of record highs amid renewed optimism that the Federal Reserve would maintain a gradual path of policy normalisation, while the dollar steadied and US treasuries gave back some of the previous sessions gains.
- Oil prices rose for a fourth consecutive session, with Brent closing up 1.4% at $48 per barrel. The Canadian dollar hovered around its 12-month high following the Bank of Canada’s decision to raise interest rates.
- US producer prices, a key measure of inflation, rose 0.1% in June (vs expectations of no change) as sustained increases in the cost of services offset declining energy prices. Consumer price inflation data is due to be released today.
- US earnings season starts to ramp up today with JP Morgan, Citigroup and Wells Fargo all scheduled to report either at or prior to the open of the US session.
- In Europe, the Euro Stoxx 50 index rose 0.4% while a move higher for sterling weighed on UK stocks, with the FTSE 100 closing broadly unchanged.
- In fixed income, European sovereign debt sold off, with the yield on 10-year German debt rising 2bps to 0.53%. Italian and Spanish yields rose 5bps and 7bps respectively.
Japanese stocks largely extended recent gains, rising 0.1% overnight, bringing the weekly gain to close to 1%. Energy and Industrial stocks were the leading gainers overnight, both rising 1.1%.