Summary:
- US Stocks fall further after Friday’s losses
- SEK gains on better than expected growth data
- Has soybeans already bottomed out?
- German inflation matches forecasts
- Google bans crypto mining apps
There’s been more weakness seen in equities today, with US markets remaining vulnerable after Friday’s declines. The US100 printed a possible reversal signal on the weekly timeframe last time out and its already dropped below last week’s low on the first trading session of the week.
The Swedish economy expanded at a much quicker pace than anticipated in three months through June. Robust growth underpins the likelihood of a monetary tightening by the year end. Having said that, domestic inflationary pressures remain fairly contained looking at GDP deflator. Anyway, the SEK jumped immediately after the release reaching the highest level against the shared currency since 9 July.
Soybean prices have clearly underperformed lately on the back of trade frictions between the US and China – the two world’s largest economies. While China declared to buy almost all US grains available for exports some time ago, new tariffs being implemented by the US changed this view quite perceptibly. Over the recent weeks we have been offered quite promising informations for the US soybean market. However, will they be sufficient to boost soybean prices?
It’s a busy week ahead for economic releases, but today in comparison is relatively quiet with little of note due out this afternoon. The only real data of note is the latest German inflation figures, and in coming in inline with both the forecast and the prior they’ve failed to provide much of a market reaction. Specifically speaking the July preliminary HICP was +2.1% Y/Y – matching both the consensus forecast and the figures for June.
The end of the previous week did not bring any fireworks when it comes to the cryptocurrency market. Over the weekend major cryptocurrencies were trading rather flat. There’s been some small selling in the space today, with all 5 markets lower by around 1% on the European close. There’s nothing major in the newsflow, but Google has banned cryptocurrency mining apps from its mobile app store called Play Store in what is clearly not a positive development.