Geopolitics Dominate Market Sentiment
European markets are mostly higher this Monday, shrugging off geopolitics concerns which have been dominating the market sentiment.
Uncertainty over US President’s fire and fury threats towards North Korea has calmed after the National security adviser H. R. McMaster said over the weekend that “we’re not closer to war than a week ago.”
And China’s involvement in the recent spat has been one of the biggest calming influences, warning that it will stop importing North Korean coal, iron ore and fish.
Eurozone industrial production fell by 0.6pc in June, a softer reading than analyst expectations. Eurostat put the drop down to a drop in the production of capital goods and durable consumer goods while the energy sector saw a 1.8pc rise.
Japan's economy grew at its fastest pace for more than two years in the second quarter. With GDP growing annually by 4% in the April-to-June period as consumer spending and capital expenditure ramped up. Despite this the Japanese yen and Nikkei fell.
And another safe haven that saw was popular at the back end of last week is now selling off following on from a break below the crucial $1284 support level. A move below $1281 would provide a strong bearish signal from here.
--- Written by Katie Pilbeam, DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.