European Markets Open Higher as Italy Bails Out Two Banks

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European Markets Open Higher

29/6 U.S. GDP to Affect the USD

30/6 German Unemployment Change to Affect the EUR

 

 

Last Week’s Recap – Markets Focus on Brexit Talks and Wobbling Oil Prices

The pound stabilised last week as markets showed confidence in Theresa May’s statement in the EU summit, in Brussels. May indicatively stated, that the UK’s position represents a fair and serious offer aimed at giving as much certainty as possible to citizens who have settled in the UK. In other news, oil prices wobbled this week on a fluctuating dollar and worries over a global oversupply glut but edged higher today as the greenback weakened.*

 

Monday Morning Briefing – European Markets Edge Higher

European bourses started the day higher on Monday, after Italian authorities announced plans to wind up two more embattled banks at a cost of up to 17 billion euros. The move comes two days after the European Central Bank warned Italy that Banca Popolare di Vicenza and Veneto Banca were likely to fail. In the energy markets, oil prices rose more than 1 percent on Monday as the dollar weakened. Specifically, Crude Oil WTI was last seen trading 1.2% higher at $43.53 while Brent Oil added 1.2 percent at $46.30 as of 6:45 GMT. Note however, that another recent rise in U.S. drilling activity capped earnings and raised concerns that a global supply glut will continue to persist despite OPEC efforts to curb output.**

 

Important Events and News Releases that will Define this Week’s Markets:

THU 29/6: U.S. GDP to Affect the USD

The United States Gross Domestic Product came in higher than expected back in May at 1.2% versus a previous reading of 0.7%. This Thursday at 12:30 GMT, investors will be looking closely at June’s Q1 third data release as another stronger than expected reading could push USD pairs higher!***

 

FRI 30/6: German Unemployment Change to Affect the EUR

Germany’s unemployment change came in higher than expected in May at -9K versus a previous -15K. This Friday at 8:00 GMT, investors will be looking closely at June’s data which will help them assess the health of Europe’s largest economy. It should be noted that a higher than expected reading should be taken as negative for the EUR pairs.***

 

*Source: Reuters
**Source: CNBC
***Source: Investing.com

 

View all Important economic releases & events this week:
https://www.bdswiss.com/economic-calendar/ 

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