France June trade balance -€7.96 billion vs -€7.05 billion prior
*figures in million of euros
Making some sense of the GBP
The GBP has been a tricky currency to trade recently. Over the last few weeks the GBP has been moving higher with seemingly little reason. With the Bank of England meeting yesterday the main message seems to be continued uncertainty. In the COVID-19 induced crisis there is lack of certainty on forward guidance
UK finance minister Sunak: Furlough program is not sustainable in the long run
- It is one of the most difficult decisions
As mentioned before, the furlough program is masking a lot of the underlying damage and pain suffered by the UK economy over the last few months and we will
Tokyo reports 462 new coronavirus cases in latest update today
The figure is up from the 360 cases reported yesterday and is the first time that cases exceeded the 400 mark since the record 472 new cases on 1 August.
Eurostoxx futures -0.1% in early European trading
- German DAX futures flat
- UK FTSE futures -0.2%
- Spanish IBEX futures -0.1%
Despite European futures keeping closer to flat levels, the overall risk mood is more on the defensive side to start the session as US futures are seeing down ~0.3% now.
Nikkei 225 closes lower by 0.39% at 22,329.94
The risk mood in Asia was dampened by Trump's executive orders against ByteDance and Tencent earlier in the day, prompting a fall in equities as well as US futures. The declines have been pared back a little but the mood is still more defensive for now.
Germany June trade balance €15.6 billion vs €11.3 billion expected
Germany June industrial production +8.9% vs +8.2% m/m expected
Trade ideas thread - European session 7 August 2020
US futures are down ~0.5% while 10-year Treasury yields are lower by 1.5 bps to 0.52%. That is keeping markets on the defensive ahead of European morning trade.
Japan June preliminary leading indicator index 85.0 vs 84.9 expected
A modest improvement in leading indicators in the month of June but amid the resurgence of the virus across the country in July, that may dampen any prospects of a sustained and continued recovery in the Japanese economy.