Summary:

• Euro gets boosted by accelerating inflation

• German DAX lags behind its Western European peers

• JPY sinks after BoJ reinforced its dovish stance

• Apple to announce earnings later today

Major European stock benchmarks are trading mostly higher on Tuesday being boosted by the accelerating inflation. However, it should be noted that the German DAX lags behind its Western European peers and is trading a notch below yesterday’s close. Japanese yen is the worst performing G10 currency after BoJ reinforced its dovish stance in the morning. On the other hand, AUD and EUR are subject to the biggest intraday advance. Taking a look at the commodity market one can observe broad gains among grains while precious metals and oil trade mixed. Data concerning the Canadian economic growth and the confidence of US consumers is scheduled for release in the afternoon.

The Bank of England meeting is decisively one of the most eagerly awaited events this week and taking a look at the market-implied probability one may realize that a 25 basis points rate increase is already a done deal. The odds hover around 90% this morning despite the latest disappointments in terms of inflation and retail sales figures.

The European economy expanded slower than expected during the three months through June according to preliminary data released by Eurostat on Tuesday. The separate reading showed that headline inflation climbed the highest since 2012 painting in a way stagflation signals, but the first glance could be tricky.

Commonwealth Bank of Australia, one of the four biggest Australian banks, has conducted a cross-border shipment of goods fully tracked by the blockchain technology. The bank has transported some 37,000 pounds of almond from Australia to Germany. The blockchain platform used in the process was developed on the Ethereum network.

We start our weekly analysis of the Top3 charts from the US500 as Wall Street is in focus amid mixed quarterly reports. We can see that US500 managed to break an upper limit of a triangle formation (greatly helped by the Trump-Juncker post meeting sentiment) but then reversed towards this limit in a dynamic fashion.

The carrier reported its second quarter earnings. Company’s profit declined as expected by the scale of a drop was smaller than the median estimate has suggested. The company assured investors that the step back in the Q2 2018 resulted from the employee strikes and weather disruption and, what is more important, that it is still capable of reaching its full-year goals.

As widely expected the Bank of Japan maintained its monetary policy unchanged offering some small changes elsewhere. The bank informed it will make its policy framework more flexible for the long-term yield target, but it was kept untouched at around 0%. Moreover, monetary authorities are to reduce the amount of bank reserves subject to its negative interest rate.