FTSE

We’re watching how the DAX holds up for today’s IFO report – given it saw ‘no signs of a recession’ in May and markets now fear a global recession.

The Japanese yen was broadly higher overnight on comments from a former FX and a report showing foreign investors fled the bond market last week.

FTSE falls as UK inflation rises, Where next for the FTSE?, Oil tumbles ahead of Powell, Where next for WTI oil?

How hot was inflation in May?

US traders are to return to their desks today after a 3-day weekend. And the biggest question we have is whether we can see some sort of relief rally, after the recent drubbing.

The FTSE fell 4.1% last week, tumbling to a three and a half month low. Today risk sentiment has improved and banks do the heavy lifting.

With the US on public holiday we could be in for a quieter session, although with sentiment remaining fragile then we see the potential for DAX to fall further.

The yen continued to weaken overnight and WTI is back at around $120 after a solid rebound from $117 yesterday.

The RBA didn’t hold back and opted for a 50-bps hike at today’s meeting, which is a first since February 2000.

The 4-day weekend has come to an end and the FTSE will reopen today. Yet take note of public holidays across Europe so liquidity should be lower than usual.

The collection of PMI data also includes the ISM manufacturing report for the US, alongside the BOC’s meeting.

European index futures have opened higher, suggesting sentiment remains buoyant after Friday’s rally. And that could bode well for a potential breakout on AUD/JPY.

After a couple of false starts, the DAX is showing a greater appetite for some sort of lift of (should sentiment allow).

With sentiment remaining fragile and futures pointing lower, we suspect the past of least resistance could point lower for the FTSE today.

RBNZ came out swinging again with a 50-bps hike and upgraded forecast for the speed and level of their cash rate.