Summary:

• European stocks move significantly higher on Tuesday

• USD losses its morning shine

• European services PMI falls more than expected

• Gold stays muted to the advances of other precious metals

Following significant gains in Asia European equities have been marching higher since the beginning of today’s session. Gains accelerated following the release of the German PMIs that saw a noticeable advance of the manufacturing gauge. The US dollar has been one of the top performing G10 currencies in the morning but it has lost its shine later on. In turn we are observing the greenback as one of the biggest laggards. SEK and AUD outperform other majors while CHF is the weakest from the G10 basket. Grains take a step back while industrial metals push higher. Precious metals also advance but gold trades relatively flat.

Manufacturing PMIs saw a bounce in July following the latest losing streak nevertheless moods in services deteriorated to some extent and as a result composite releases slipped except for Germany. The euro was little changed immediately after the release. From a technical angle the common currency might pull back toward its short-term support.

BoE’s updated payments system will be compatible with a blockchain-based technologies. Bank of England is making efforts to modernize its payments system called Real-Time Gross Settlement. RTGS handles various financial transactions in the United Kingdom thus it is very important for the British banking system.

Volkswagen announced today that the BMW purchasing chief, Markus Duesmann, will join the company. Duesmann commitments to BMW prevent him from joining Volkswagen straight after he leaves his current employer at the end of the year. Nevertheless, Volkswagen has said that he will join the management board as soon as possible.

Beginning with equity markets one may notice than Asian shares are experiencing heavy gains during Tuesday’s session which might be related to overnight revelations coming from the China’s State Council. It signalled that it has a substantial toolbox containing various policies aimed at boosting domestic demand.