AUS
NZ
UK
CA
USA
IND
Summary
- FTSE100 traded in negative territory with concern over the recent rise in cases of delta variant.
- European Central Bank will update its guidance on monetary stimulus at the next meeting.
FTSE 100 started the week in red, with concern over the recent jump in delta variant cases in the UK. The index was being dragged down aviation stocks, airline engine maker, Rolls-Royce Holding Plc was down by 4.05% at GBX 96.91, and airlines passenger carrier stock, IAG Group which was down by 3.78% at GBX 177.86, after the market rumors that the European Union is considering introducing taxes on aviation kerosene. UK benchmark index, FTSE 100 was down by 0.68% at 7073, while the mid-cap focused FTSE 250 was down by 0.16% at 22873.
Major European indices were also trading in red, the German blue-chip DAX index at 15672, down by 0.12%, and the French index CAC40 at 6510, down by 0.29%. European Central Bank President Christine Lagarde said that the new guidance on monetary stimulus will be announced at the next meeting, indicating that the new Monetary Policy will replace the current Pandemic-led bond buying program. Last week ECB has changed its stance on inflation targeting a flat 2% in the medium term from the previous target of “below but close to 2%”.
Meanwhile, the pound was down by 0.35% at 1.3851 against the dollar. The GBP/EUR currency pair traded at 0.8553, up by 0.21%.
Futures tracking the US index Dow and S&P500 was in red on Monday morning ahead of key inflation data and second quarter earnings season.
Commodities:
WTI Crude oil August Future traded at USD 73.53, down by 1.35%, and Brent crude oil contract traded at USD 74.58, down by 1.26% after the fear of slow global economic recovery because of the recent spike in coronavirus cases worldwide. Last week OPEC nations abandoned the talks on increasing crude oil supply from August after the dispute between Saudi Arabia and the UAE.
Gold August contract traded at USD 1799 per ounce down by 0.62%, the gold prices were in red as investors are cautious ahead of important US inflation data for the month of June which will be announced tomorrow.
Asian Markets:
Major Asia Pacific indices closed the day in green with Australia’s ASX200 snapping the session at 7333, up by 0.83%. Nikkei 225 of Japan also closed in green, up by 2.25% at 28569. Hong Kong’s Hang Seng index up by 0.65% at 27451. Shanghai Composite of China closed in green, up by 0.67% at 3547, while India’s Nifty 50 closed at 15692, up by 0.02%. China will be releasing second quarter GDP numbers this week which will give further signs of post-pandemic economic progress.
