A strong rally for global equities ahead of crucial EU emergency summit

Monday, June 22, 2015

Asian equity markets rebounded strongly overnight and posted strong gains. The Nikkei index surged over 250 points (+1.26%) above 20,400 and the Hang Seng index gained almost 200 points (+0.70%) towards 26,950. The upside momentum continued in European equities this morning which opened higher and recovered from sharp losses last week. The CAC, DAX, IBEX and London equity benchmark indices rallied between 1.2% and 2.6% in early trade, verifying positive signs of recovery across the global equity markets.


EUR Curncy (Euro Spot )  Daily 19 2015-06-19 16-03-38

The euro hovered around 1.1350 against the USD, while investors remain cautious ahead of the crucial Emergency Summit in Brussels today regarding Greece’s debt issues. Greek Prime Minister Alexis Tsipras presented a new plan over the weekend. In phone calls yesterday, Tsipras briefed German Chancellor Angela Merkel, French President Francois Hollande and European Commission President Jean-Claude Juncker on Greece’s proposal in order to unlock bailout funds, according to a separate statement from his office. European Commission spokesman, Martin Selmayr, reported that the new offer “was a good basis for progress at tomorrow’s Euro summit”.

The USD index remains under pressure after hovering around 94.20 against a basket of currencies due to renewed rumours of a possible US interest rate rise in September. Today, the main focus will turn to the US Chicago Fed business index as well as existing home sales data.

USD index

DXY Curncy (DOLLAR INDEX SPOT)   2015-06-22 08-49-25

The softer USD has provided strong support to most commodity prices this morning. Crude oil prices rebounded and climbed higher with WTI front month futures increasing above $60 per barrel. Brent front month futures rallied towards $64 per barrel. Copper edged higher towards $5680 this morning.  

WTI front month futures break above $60/barrel

CLN5 Comdty (WTI CRUDE FUTURE  J 2015-06-22 08-50-31


Events for today:

CN Market Holiday




Chicago Fed




Existing Homes Sales




Consumer Confidence


All times UK Local Time

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