European markets progress with the return of American markets


It’s shaping up to be another positive session for European markets, with a modest rebound in copper prices and prices of other metals helping lift the basic resources sector.

The gains have been rather tepid in nature and are still far from reversing the losses we saw last Thursday, with the FTSE100 and DAX underperforming the CAC40, which outperformed after falling sharply yesterday on news that the reform program of French President Macron is probably dead in the water, after the result of the weekend’s French elections.

Nevertheless, we are seeing strong performances from Antofagasta, Rio Tinto and Glencore

Packaging company DS Smith is one of the top performers today after releasing a decent set of full year numbers. Full-year revenue rose 21% to a record £7.24bn, contributing to a 64% rise in pre-tax profits to £378m. It was only last week that stocks hit their lowest levels since October 2020, so today’s full-year numbers are a welcome tonic for a company whose stock price The stock has been down more than 30% in price since last September’s 2021 highs.

Shares of Ocado fell sharply after raising £578million in a cut price fundraising in a move announced late last night after the market closed. The company also announced that it had agreed a new £300m revolving credit facility. The money will be used to accelerate its investments in innovation and create solutions at a faster pace.

Airlines are also on the slide with easyJet among the worst performers after announcing that its Spanish cabin crew would seek a nine-day strike from July. The calls follow reports of similar industrial action by Ryanair staff based in Italy, France and Portugal.

With an eye to the future, easyJet has also announced plans to purchase 56 Airbus A320neos, as well as the conversion of 18 A320neos to 18 A321neos, as the airline seeks to modernize its fleet. That would be for delivery between 2026 and 2029, and would be under the terms of its existing contract, which was signed in 2013.


US markets recovered from their long weekend, opening higher largely on the rebound seen in Asian markets, as well as European markets this week.

In company news, Kellogg, the company that gave us cereal favorites Rice Krispies and Corn Flakes, announced it was splitting into three separate companies, splitting into the snacks, cereals and plant-based foods. The three companies, whose final names have yet to be decided, will be “Global Snacking” which will generate approximately $11.4 billion in sales. The “North American Cereal” company will focus on the United States, Canada and the Caribbean and “Plant Co” will be a plant-based food company. Unfortunately, there is no truth to the reports that they will be called Snap, Crackle, and Pop, as Snap is already taken.

Exxon Mobil shares are higher after it announced it was taking a $29 billion, 6.5% stake in the Qatar gas project, joining a host of other companies seeking a stake in non-Russian natural gas assets.

Tesla shares are also higher after CEO Elon Musk said he would cut 10% of its salaried workforce over the next 3 months.

Coinbase shares are also enjoying a welcome rally as bitcoin continues to pull away from its weekend lows.


The pound tried to climb higher today after Bank of England chief economist Huw Pill said the central bank would let growth weaken in order to help the bank achieve its target of 2% inflation, which sounds hawkish until you realize that in most cases what the central bank says rarely translates into what it ends up doing.

Pill cautioned his remarks that monetary policy could not solve all problems and that the exchange rate was not a goal, there seemed to be little recognition that the exchange rate was already causing currency effects. second round. With inflation set to hit 11% by autumn according to the Bank of England’s own estimates, you must be wondering what it would take for the MPC to break the habit of its life and rise by more than 25 basis points. If we’re not there now, you have to wonder if we ever will be, and that helps explain why the pound has struggled to rally. Frankly, markets have little faith in what Bank of England policymakers have to say in terms of forward guidance.

The Japanese Yen continued to weaken, hitting a new 24-year low against the US Dollar, and looks poised for further losses towards the 140.00 area. The market is clearly looking to test the BoJ’s resolve in terms of how prepared it is to tolerate further currency weakness. We have heard joint statements from the Bank of Japan and the Ministry of Finance that they are monitoring exchange rate developments, but in the absence of a change in monetary policy there will be little they can do to slow the decline. With the yen down 15% year-to-date, there is already a risk that the currency’s decline will generate momentum of its own and cause a surge in inflation that is difficult to control.


Crude oil prices continued to retreat from the month-long lows seen late last week after the latest data on overall air demand as well as U.S. road demand released. showed few signs of slowing down.

After hitting a one-year low yesterday, copper prices are enjoying a modest rebound, with a slight weakening in the US dollar helping to trigger a slight pullback.

Gold prices are treading water, with a slightly weaker US dollar mitigating the decline, while a continued rebound in US yields tempers the upside.


A profit warning on Monday saw shares of Rank Group tumble, with the underlying price falling almost 15% and the daily flight climbing to 381% as a result. That compares to 165% on the month, with the company reporting lower than expected visitor numbers to its UK sites.

Bargain hunting appears to be driving price action in at least some cryptocurrencies, with Litecoin notably standing out here. After trading at around 18-month lows, the underlying is now more than a quarter up from prices seen over the weekend, translating into Monday volume 283% versus 124% over the month.

Fiat currency markets are looking a little more normal after the exaggerated levels of movement we have seen in some of the more established pairs over the past week. Overall, the daily flight is printing below the monthly readings, with Dollar – Forint showing the most exaggerated level of activity with an 18.28% print on the day.

As for commodities, copper could be seen as something to watch as the metal rebounded from year-to-date lows yesterday amid growing recession concerns. Critically, there is also the risk of a miners’ strike in Chile, but that doesn’t seem to provide much support, at least for now, these fundamental drivers will likely still weigh on price action for some time. time. The daily theft stands at 30.19% against 24.01% over the month.