Summary:

  • Despite downbeat Asian session equities in Europe and US move higher

  • Scandinavian currencies advance strongly for another day

  • Non-manufacturing ISM moves to the highest level since March

  • Oil pulls back after DOE signalled decent build in inventories

  • Investors’ attention turns to FOMC minutes (7:00 pm BST)

This week’s DOE data on crude oil inventories came one day later than usual due to the Independence Day holiday in the US yesterday. The API data released on Tuesday showed a bigger-than-expect drop in oil inventories supporting prices of the “black gold”. However, data released today signalled a decent build.

The final PMI readings were neither surprise nor disappointment and therefore no major reaction was observed on the markets. The non-manufacturing ISM reading continued recovery in June moving to the highest level since March. Moderate gains are observed on Wall Street in the first trading hour.

While yesterday’s trading has been subdued due to the holiday in the United States today is a different day. US traders are returning after a day off and will be offered a vast array of data from the US economy today. The ADP labour market report launched the data marathon followed by weekly initial jobless claims reading.

The US labour market has been really strong – this is not questioned at all. Average employment growth in the past 12 months through May was at 197k, just a notch below a 200k figure for a previous such period. If anything, this suggests a great appetite for workers as you’d normally assume some employment growth deceleration as the unemployment rate goes down to 4%.

Speaking of stolen coins it is worth highlighting a report by the cryptocurrency start-up CipherTrace. According to the company around $761 million worth of digital assets have been stolen from the cryptocurrency exchanges so far this year.

Relative outperformance of German auto shares stems from the communique conveyed by the US ambassador to Germany suggesting that Washington would support lowering car tariffs to zero for US and European carmakers. The news is a result of a meeting between the US ambassador and the bosses of Volkswagen, Daimler and BMW as well as the head of parts maker Continental.