Economic woes remain dominant; Dip-buying interest returns

📰 Global stock futures remain shaky, while demand for European bonds is low, showing that investors remain concerned about the slowdown pushing the global economy into recession and stubborn inflation that central banks around the world are trying to tame.

Wall Street stock futures ended last week in the red again – the eleventh negative week in the last 13 weeks. However, on Friday, the last day of the week and the first day of the third quarter, Wall Street was able to limit its losses and end the day in the green, with European stocks also rising today for the first time in four days. Markets in Asia are still struggling to find direction and remain mixed.

H1 saw one of the worst sell-offs in history and markets fear more pain is coming as sky-high inflation continues to put pressure on central banks, who have been instrumental in taming inflation by tightening monetary policy, with their ultra-cheap monetary policies. It is safe to say that the global economy is facing its greatest challenge since at least the 1970s, and possibly even since the end of World War II.

Producer inflation (PPI) in the Eurozone fell slightly in May, but the data is old and still very high (+36.3% year-over-year). The PPI continued to rise compared to the previous month. The very high producer price inflation, which rose mainly due to sky-high energy costs, will give a taste of how far inflation can rise in the Eurozone and other economies (like UK) that are heavily dependent on energy imports.

Trading volume remains light today at the start of the U.S. Independence Day. The dollar weakened slightly as safe haven demand weakened in the short term and the U.S. may ease its tariffs on China. Political tensions in Italy continue to weigh on the euro and Italian bonds. In China, the government is trying to get a handle on the renewed flare-up of COVID cases.

Oil and gas prices continue to rise, driving WTI back above $108/barrel, as we expected. Concerns about tight supply remain – especially given the high demand for travel during the summer season. 


👁 ROB'S MARKET OVERVIEW:

⚠️ Reduced volatility / trading volume due to Independence Day (US markets closed)*

🇺🇸 US Markets ➡️/↗️*

💱 Forex Markets
AUD, CAD ↗️
GBP ➡️/↗️
EUR ➡️
USD, CHF ➡️/↘️
JPY ↘️

⚒ Commodity Markets ➡️/↗️
Oil prices ↗️
Gas prices ➡️/↗️
Metal prices ➡️
Precious Metals ➡️

⚡️Crypto Market ➡️


(*↗️ bullish, ↘️ bearish, ➡️ sideways / stable, ↕️ mixed / volatile)

Yours, Robert 🇺🇸🎉😴📈🔍