Summary:

  • Major European stock indices trade in a vicinity of yesterday’s closing price

  • FOMC minutes confirm rates to be gradually increase

  • Jobs reports from US and Canada in the spotlight today

The tariff theme once again stormed the financial markets as new US tariffs take full effect today. Beijing is said to have already retaliated but the details are not known yet. On the currency front we are observing Scandinavian currencies take a step back after few days of rally. On the other hand, both AUD and NZD are ranked as leaders among majors today. Equities in Europe trade mixed with major stock benchmarks from the region sitting in the vicinity of yesterday’s closing price. Precious metals are trading at small discount while oil prices pull back after surprise build in inventories signalled by DOE yesterday. In today’s calendar we have two major events – labour market reports from the US and Canada (both at 1:30 pm BST).

While this year is nothing like the previous one for the cryptocurrency market still there is money to be made in this sphere. Bitcoin bulls may be outraged by this statement given the fact that the most famous virtual currency slumped more than 60% since its peak in mid-December but we are not speaking about investors here. We are speaking about cryptocurrency exchanges.

European stock markets have opened higher, but those gains have not lasted too long. Moods have deteriorated following the Chinese announcement with regard to tariffs. Namely, according to the China’s foreign ministry levies on goods imported from the US have been implemented, but not details have been given so far.

Over the past hours we got a lot of crucial reports substantially impacting both currencies as well as stocks. Beginning with the FOMC minutes one may stress that we got a confirmation that the Committee should continue delivering gradual rate increases given that the economy remains very strong and inflation is estimated to run at 2% on a sustained basis over the medium term.

Expectations with regard to today’s release do not seem to be overstated, and the consensus suggests that the US economy added 195k new jobs last month in the non-farm sector compared to 223k observed in May. As usual the wage growth data should draw the most of attention as market participants keep looking for any signs of mounting inflationary pressures.