Stocks in Europe recover as German migration agreement is reached
SEK surges as Riksbank members deliver a hawkish message
Oil moves higher ahead of the API reading
European stock markets advance significantly on Tuesday thanks to the German migration dispute being resolved. Most of the major stock benchmarks from the Western Europe post over 1% gains. Swedish krone is trading as the best currency in the G10 basket after Riksbank members delivered a hawkish message during its July’s meeting. On the other side of the table we have Swiss franc that trades at discount against all the majors. Commodities trade broadly higher with oil adding around 1% ahead of the API reading scheduled for evening.
The cryptocurrency market enjoyed another day of gains yesterday. Bitcoin price is now up 12% since the beginning of second half of the year and it has started just 3 days ago! Along with Bitcoin other noticeable coins surged and in turn we are observing some major changes in the technical outlook of Ethereum or Litecoin.
The Swedish monetary authorities decided to leave interest rates unchanged during their July meeting matching economists’ expectations. At the same time, the bank lifted its inflation projections thereby solidifying odds for a hike yet this year, and explicitly signalling rate increases may start toward the end of the year.
European stock markets have started Tuesday’s trading on the right foot partly on the back of upbeat revelations from Germany where Interior Minister Horst Seehofer and Chancellor Angela Merkel reached an agreement with respect to immigration. However, even as the German DE30 jumped immediately after the opening, it has already given back some of its gains.
This week has begun with a wave of uncertainties coming from Germany, but currently it looks that the internal political crisis has been resolved at least for the time being. During a meeting between Chancellor Angela Merkel and German Interior Minister Horst Seehofer a deal on migration was reached, and the CSU’s leader dropped his threat to quit from his posts.
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