Good macroeconomic data from Europe seems to balance out the negative overtones of what is happening in the US, especially between Washington and Beijing. We are talking about the ban on transactions with the Chinese technology group Tencent and ByteDance, owners of WeChat, and TikTok applications, introduced by President Donald Trump.
Economic data from Europe have exceeded market expectations. German exports increased by 14.9% month-on-month, the largest rebound since 1990. The market expected a 13.3% increase in industrial production in Germany, which rose by 8.9% in June compared to May. The market expected growth of 8.1 percent. The biggest rebound was recorded in the automotive industry, where growth was 54.7 percent.
As a consequence of rather contradictory information, together with the waiting for the next stimulus package for the American economy, stock exchange indices do not seem to be characterized by major changes this morning. The mood is subdued after the earlier Nasdaq 100 index record and the closed bearish gap from February by the S&P500 index. The German DAX, on the other hand, has a problem with breaking 13000 points. It is worth mentioning that officials in Washington are calling on Donald Trump to decide to remove from the US stock exchange Chinese companies that will not meet US audit requirements by January 2022.
New data from the World Gold Council has appeared on the hottest gold and silver markets this summer. These data show that in July global ETFs recorded the eighth month of capital inflow in a row. The volume of capital inflow amounted to nearly USD 10 billion, which corresponds to 166 tons of gold. As a result, a record of gold held physically by ETFs was recorded. This information may confirm that behind the huge gold boom, it is not so many institutions as individual investors who may find it difficult to maintain the rally observed in recent weeks.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
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