The market takes breath after the long rally. What opportunities do traders have today?
Euro zone corporate lending surge reaches post-crisis peak
In April, surge in bank loans to euro zone companies demonstrated a fresh post-crisis peak, high, even as a major money supply indicator that often predicts future economic activity, dived more than expected, according to Monday’s fresh data from the ECB.
In April, corporate lending in the 19-country currency bloc tacked on by 2.4%, which is above last month’s 2.3%, while being the highest rate since mid-2009.
While this tempo of surge turned to be less than half of the pre-crisis level, experts still suggest that the ECB's cheap cash was moving to the real economy, even if slower than the EU’s major financial institution previously expected.
Meanwhile, lending to households inched up by 2.4% in April, which is the same level as a month earlier, when it reached its highest value since early 2009.
The annual surge rate of the M3 measure of money, which circulates in the euro zone that often predicted economic activity in the past, demonstrated 4.9% the previous month, compared to 5.3% in March.
The United States will publish a weekly update on unemployment claims on July 9, at 15:30 MT time.
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.