After selling off yesterday on renewed risk aversion, most major global equity indices managed to hold firm today, ending a week of sharp reversals. European benchmark indices were largely well supported around opening levels as investors bought into intraday declines, with many market participants wary of the recent sell-off which was potentially overdone. London’s blue chip index as well as France’s CAC spent much of the session in negative territory before firming up towards the close. Investors remain cautious to the tenuous relationship between Ukraine and Russia as well as the Israeli ground assault in Gaza with any escalation of violence potentially capping any upside momentum into the coming week.
After rallying higher yesterday, spot gold prices sold off sharply overnight, reversing the previous session’s gains despite the increased demand for safe haven assets. Prices tested levels just below $1,325/oz in early trade before pulling back towards the 100 day MA around $1,303/oz. Wall Street shares were trading higher at the open as signs of stability were returning to equity markets.
At the time of writing both the S&P 500 and DJIA were trading between 0.4-0.5% higher despite macro data coming in slightly below expectations. The preliminary reading for the University of Michigan confidence index came in at 81.3 in July, slightly below expectations of 83.0 while the Leading index posted a surprise fall in June to 0.3% from the previous months revised figure of 0.7%. For the week ahead, over in the US Monday sees the release of the Chicago Fed national activity index while on Tuesday CPI data is expected.