European Close Market Briefing – 19/06/2017 – by Arjun Lakhanpal

June 19, 2017 by

In European Equity Markets French stocks outperformed upbeat European indices on Monday following a convincing parliamentary victory for President Emmanuel Macron, while banks rebounded following upgrades and retailers recovered from last week’s losses. France’s blue-chips gained nearly 1 percent after President Emmanuel Macron cemented an overwhelming parliamentary majority, further increasing his party’s capacity to push through reforms. Euro zone blue-chips closed 0.9 percent higher, as did the pan-European STOXX 600. Dutch healthcare technology firm Philips jumped to a 15-year high after The Times reported activist hedge fund Third Point was building a stake in the company.

In Currency Markets the dollar nudged higher on Monday as an influential U.S. Federal Reserve official expressed confidence rising wages would help revive domestic inflation which has shown signs of softening recently.  The euro was down 0.2 percent versus the greenback to $1.1174, while the dollar gained 0.4 percent against the yen at 111.32 yen. The single currency was up 0.2 percent at 124.39 yen. Sterling was 0.1 percent lower at $1.2761 higher ahead of the formal start of negotiations on Britain’s planned exit from the European Union. An index, which gauges the dollar against six other currencies, was up 0.15 percent at 97.310.

In Commodities Markets oil prices were flat on Monday after diving 13 percent since late May as rising production in the United States, Libya and Nigeria have foiled an OPEC-led effort to support the market by cutting production. Brent futures for August were down 0.1 percent, at $47.33 a barrel, while U.S. crude for July was down 0.2 percent, at $44.65 per barrel the day before the July contract expires. Spot gold was down 0.3 percent at $1,248.7 an ounce up from an earlier $1,247.41, its lowest since May 24.  Silver lost 0.1 percent to $16.56 an ounce and platinum slid 0.5 percent to $919.5 an ounce. Palladium was down 0.1 percent at $860.3 an ounce.

In US Equity Markets  stocks were higher in late morning trading on Monday, with the S&P 500 and Dow Jones Industrial Average hitting yet another record high, as technology stocks rebounded after recent losses. The Dow Jones Industrial Average was up 0.5 percent, at 21,491.9, the S&P 500 was up 0.65 percent, at 2,449.07. The Nasdaq Composite was up 1.17 percent, at 6,223.88. The tech sector’s 1.37 percent rise led the gainers on the S&P 500, putting it on track for its biggest one-day percentage rise since March. Leading the recovery, Apple rose 2.6 percent, providing the biggest boost to the three major sectors. Microsoft and Alphabet were also up.

In Bond Markets U.S. Treasury yields jumped to session highs on Monday after New York Federal Reserve President William Dudley struck a hawkish tone on monetary policy, raising expectations that the U.S. central bank will continue tightening. Benchmark 10-year note yields jumped to as high as 2.18 percent on Dudley’s comments, up from a low of 2.14 percent overnight. France’s 10-year government bond yield was within sight of seven-month lows and South European government bond yields fell on Monday after this Sunday’s second round vote.