ActivTrades’ Market Analysts have prepared for Leaprate their daily commentary on traditional markets for July 2, 2019. See details below:
Currently trading just above $1.26, the British Pound is losing ground against all major currencies, as the effects of Brexit-driven economic uncertainty and a slowdown in internal demand and exports, start to be felt. Yesterday’s publication of economic data, including industrial PMI’s, pointed to a decline in manufacturing activity, which happened for the third time in a row. The release of this latest set of data accentuated the gloomy outlook for the British economy and the Pound’s decline could become even more pronounced if investors keep turning their backs to Sterling, put off by Brexit-related uncertainty.
Ricardo Evangelista – Senior Analyst, ActivTrades
Stock markets posted small gains everywhere in Europe today. Even though talks are well underway between Washington and Beijing, the effect of the trade truce is slowly fading. On top of that, the US Trade Representative Office proposed increased tariffs on $4 billion of EU products. This tariff hike may be modest for now but it certainly underlies the impact of Donald Trump’s trade strategies all around the world.
Investors have now switched back their focus to data and will be waiting for the EU PMI release due on Wednesday, prior to Independence Day in the U.S. on Thursday. Investors are also already pricing a better than expected non-farm payroll on Friday as projections show it rose by 164,000 for June from 75,000 in May.
In London, stocks remains steady, the FTSE-100 index is struggling to clear its 7,470.0pts resistance level as Boris Johnson and Jeremy Hunt continue their campaign to be the next British Prime Minister. Shares in Geneva show a similar technical configuration with the SMI-20 still trading right below a major resistance placed towards 9,980.0pts. The market is mixed as 9 out of 20 shares are trading lower. Lonza Group AG remains one of the most shorted stocks while the best performances are being registered by SWISS RE AG, SWISS LIFE HOLDING AG, SGS SA and NOVARTIS.
Pierre Veyret– Technical analyst, ActivTrades
After another quick test to the support area of $1,382, gold is rebounding to $1,390/1,395, confirming that, so far, the bulls are still trying to keep the control of the market. A fall below the support areas of $1,383 and $1,370 could make space for further declines, otherwise a breakup of the maximum levels seen in the last 36h at $1,395 would push gold up, increasing the chances of seeing the closure of the gap left open at the beginning of this week.
Carlo Alberto De Casa – Chief Analyst, ActivTrades