DAX 30 higher, as EU business activity rebounds
As U.S. markets were closed due to the public holiday on Monday, attention shifted to Europe, with data released showing that business activity climbed by its fastest in 15 years.
The rise in business activity comes as many European countries reopened their economies as a result of increased vaccinations.
Data from IHS Markit showed that its Purchasing Managers Index jumped to 59.5 in June, up from May’s 57.1.
This was the Index’s highest level since June 2006 and comes as the EU begins to welcome fully vaccinated tourists into the continent as the summer season commences.
The DAX 30 was marginally higher as a result of the news.
Oil prices climb to multi-year highs on OPEC tensions
Crude oil prices rose to their highest level in the last few years on Monday, as tensions between the UAE and Saudi Arabia led to the policy meeting being postponed.
The tensions began last week during discussions, when the United Arab Emirates voted against a potential extension to production curbs.
Many in the cartel have remained cautious on increasing supply as a result of the Delta Variant of the COVID-19 vaccine.
This cautious approach has also led to crude oil prices climbing, with WTI trading at an intraday high of $76.42 in today’s session.
Monday’s high was the most a barrel has been prices of WTI since September 2018.
FTSE 100 rises as Boris confirms end of lockdown
The FTSE 100 closed higher in today’s session, as British Prime Minister Boris Johnson confirmed his plans to end all lockdown restrictions.
Speaking in front of the media, Johnson stated that, “We must be honest with ourselves that if we can’t reopen our society in the next few weeks, when we will be helped by the arrival of summer and by the school holidays, then we must ask ourselves when will we be able to return to normal?”.
Initially, all remaining restrictions were due to be removed on July 21st, however as a result of the rapid spread of the Delta variant, plans were postponed.
The PM later added that, “We will move away from legal restrictions and allow people to make their own informed decisions about how to manage the virus“.
Some have criticized Johnson’s handling of the matter; however, markets seem to have been boosted by the news, with the FTSE ending 0.58% higher.
Quote of the day – “The goal of a successful trader is to make the best trades. Money is secondary.”– Alexander Elder
Senior Market Analyst