S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
ING’s Chris Turner notes Sterling has held up even as markets scale back Bank of England tightening expectations to just one 25bp hike this year, while ING expects no change in rates. Political scrutiny of Prime Minister Keir Starmer could weigh on sentiment. ING warns GBP/USD may surrender recent gains, eyeing 1.3380/1.3400 as an initial downside target.
Sterling resilience faces policy and politics
“Sterling has been performing reasonably well despite the market removing a lot of the expected Bank of England tightening this year. The market still prices one 25bp hike this year, while our team sees unchanged rates. That hike may not be priced out until oil prices drop, however.”
“There is also the small matter of politics in the UK. Prime Minister Keir Starmer will today make a statement in parliament to potentially correct the record on the approval process for the former UK ambassador to the US, Peter Mandelson.”
“This will be a tough session for PM Starmer and one which will extend into tomorrow, when the top civil servant involved in the approval process also appears at a parliamentary hearing.”
“GBP/USD could well hand back a big chunk of recent gains this week, with a first target being around the 1.3380/3400 area.”
