📆 Friday, June 21
► European equity markets opened weaker on Friday, with the Stoxx 600 index currently trading 0.6% lower and losing much of yesterday's gains. Bonds were in higher demand after data showed that the early elections in France had a negative impact on the recovery of the private sector in the eurozone. German Bund yields, for example, fell below 2.4% and dropped by six basis points after data showed the impact of the early elections in France on the recovery in the manufacturing sector. Positive retail sales data in the UK, which rose at the fastest pace since January, briefly supported the GBP. The S&P Global UK Composite Purchasing Managers' Index fell to 50.8 in June, the worst reading of the year, while forecasts had predicted a rise to 52.5, which in turn created headwinds and worsened risk sentiment (also in the UK).
► Wall Street is preparing for the triple witching as derivative contracts linked to equities, index options and futures mature, forcing investors to roll over their existing positions or open new ones. This can lead to changes in portfolio allocation. About $5.5 trillion worth of options will mature on Friday. While the expiration doesn't take place until the last hour of regular U.S. trading today, it usually prompts investors to be more cautious, especially in a quarter where there have been significant moves in some assets.
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