OF Morning Newsletter

European equity markets expected in scattered order ahead of American tech earnings. The Eurostoxx 50 opened at 4,102.59 points, down 0.16%, the CAC 40 at 6,578.60 points (+0.15%), the DAX 30 at 15,618.98 points (-0.32%), the FTSE 100 at 7,025.43 points (-0.03%), the SMI at 12,049.63 points (-0.67%), the AEX at 745.10 points (-0.67%), the AEX at 745.10 points (-0.10%) 0.58%), the BEL 20 at 4,237.31 points (+0.16%), the IBEX 35 at 8,775.20 points (+0.67%), the DJIA at 35,144.31 points (+0.24%), the Nasdaq at 14,840.71 points (+0.03%), the S&P 500 at 4,422.30 points (+0.24%) and the Nikkei 225 to 27,983.11 points, an increase

On the currency side, the change compared to the close in New York indicates that EUR/USD remained stable at 1.1803 while EUR/JPY opened at 130.09 (-0.15%), USD/JPY at 110.23 (-0.15%).

European equity markets are expected to present a mixed picture at the opening on Tuesday, as investors await the results of American tech giants Apple, Microsoft, and Alphabet, to be released after the Wall Street close, and the Federal Reserve (Fed) begins two days of meetings of monetary policy. At 7:25am, the CAC 40 futures contract gained 4 points, or 0.06%, according to data from the broker IG Markets. The DAX 30 contract lost 21 points, or 0.1%, and the FTSE 100 contract lost 9 points, or 0.1%. In terms of economic indicators, investors will monitor the figures for durable goods orders in the United States in June. American and Chinese officials compared their views on Covid-19, human rights, and cybersecurity during a tense exchange on Monday in the port city of Tianjin. In this context, Wall Street reached new record highs at the close on Monday. The Dow Jones Index (DJIA) rose 0.2% to 35,144.12 points. The expanded S&P 500 index also gained 0.2%, to 4,422.32 points. The Nasdaq Composite picked up 0.03% to 14,840.71 points. In Asia, the main indices moved in scattered order on Tuesday. In Tokyo, the Nikkei index gained 0.5% at the end of the session. In contrast, the Shanghai Composite lost 0.1% and the Hang Seng on the Hong Kong Stock Exchange fell by 1.6%.

The yield on the ten-year U.S. Treasury note fell to 1.282% on Tuesday morning, from 1.297% on Monday evening, while investors remain focused on upcoming Fed announcements. According to economists, the US central bank should leave the target range of the federal funds rate unchanged, at a level close to zero, and keep its monthly asset purchases at $120 billion. The yield on the inflation-linked Treasury bond, or TIPS, fell to an all-time low on Monday. Considered as an indicator of real return, which measures what investors receive from their bonds after compensation for inflation, the YIELD OF TIPS reached -1.120% in session, according to Tradeweb data

The euro was stable on Tuesday morning against the dollar, just above the 1.1800 threshold, as investors await the results of major American technology companies and the Fed's monetary policy announcements. The good start to the earnings season and improved economic indicators offset concerns about the Delta variant of the coronavirus and possible new lockdowns. The fact that the Federal Reserve raised expectations for the first interest rate hike in the United States in June likely prompted some investors to bet on the dollar strengthening rather than weakening during the week ending July 20, according to ING. This week's CFTC data shows net long dollar positions for the first time since March 2020. Long positions are bets on an increase in the price of an asset, while short positions are preferred if investors expect the price to fall

Oil contracts are progressing on Tuesday morning, but their rise may be limited by current concerns about the Delta variant. This mutation of the virus responsible for Covid-19 continues to spread globally and travel restrictions are not easing, Oanda points out. The whole world is asking how it will live with Covid-19 and concerns about short-term oil demand could prevent any sharp rise in oil prices despite supply tensions, adds Oanda. At 7:15am, the September North Sea Brent contract earned 29 cents, at $74.79 per barrel. The price of light sweet crude oil (WTI) traded on Nymex rose by 18 cents to $72.09