AUS
NZ
UK
CA
USA
IND
Summary
- FTSE 100 opened in red, tracking the mixed Asian market cues.
- Great Britain pound was trading higher against the United States dollar on Tuesday morning.
FTSE 100 has started in red on Tuesday, tailing mixed trading in the Asian markets. The UK index closed at 41 points higher in the last session,
The UK blue-chip index closed at 7164 on Monday, which is still 600 points away from its all-time high. Although the new wave of coronavirus is still a worrying sign for the economy, the new wave impact could be specific to few sectors like travel and tourism rather than impacting the whole economy.
Meanwhile, Tuesday morning pound was up by 0.33% at 1.3891 against the dollar. The GBP/EUR currency pair traded at 0.8557, down by 0.09%.
Economy
Multiple leading indicators like manufacturing activity and retail sales are pointing to a recovery in the economy and projects solid growth in the second half of the year. Government initial monetary and fiscal stimulus along with excess household savings during lockdown could result in a demand-side upswing, which could push the UK economy beyond pre-pandemic levels.
European markets
European markets, Germany’s DAX index and France CAC40 are in the red as well after a spike in the crude oil prices, as OPEC and its allies could not agree upon the proposal to increase crude oil production in the second half of the year. Without the deal, oil prices could see volatility in the near term, which could impact the economic recovery after the pandemic and add to the inflationary concerns worldwide.
Asia Pacific stocks market saw a mixed bag of trade with Australia’s ASX200 at 7261, down by 0.73%. Nikkei 225 of Japan at 28643, slightly up by 0.16%, Hang Seng index of Hong Kong down by 0.26% at 28092. Shanghai Composite of China was in red, down by 0.11% at 3530, while India’s Nifty50 was up by 0.32% at 15885.
Commodities
Brent crude futures traded above USD 77 for the first time since 2018 at USD 77.81, while the WTI crude oil in August future traded at USD 76.85.
The gold future contract traded at USD 1,805 per ounce, up by 1.27%, which is the fifth consecutive daily gain in the yellow metal prices, taking it to two weeks’ high. On Wednesday, Fed meetings minutes will be released, which could give hints about the interest rate hike. Meanwhile, the US market will open today after the extended Independence Day weekend break.
