U.S. consumer confidence highest in over 1-year
Consumer confidence in the United States raced to its highest level in over a year on Tuesday, as the Conference Board released its latest report.
The CB report showed that its consumer confidence index climbed to a reading of 127.3 in the month of June, up from 120.0 in May.
Today’s reading was the highest level since February 2020, and easily blew past analyst expectations of a 119.0 increase.
As a result of today’s data, the S&P 500 hit a new all-time high earlier in the session, climbing to as high as 4300 points before ending the day up just 1.19 points or 0.03%.
Both the NASDAQ and Dow Jones were also marginally higher, up 0.19% and 0.03% respectively.
A rise in UK home prices sends FTSE 100 higher
The FTSE 100 rose for the first time this week, as it was announced that house prices in the United Kingdom rose by the most in 16 years.
Figures released showed that prices, on average rose by 13.4% from June last year, as a result of lower interest rates.
Mortgage lender Nationwide, who provided the data, expects demand to remain strong while current monetary policy incentives for the Bank of England stay in place.
The lender’s Chief Economist Robert Gardner stated that “While the strength is partly due to base effects, with June last year unusually weak due to the first lockdown, the market continues to show significant momentum“.
London’s FTSE 100 closed 0.21% higher on the news.
Oil prices fall as markets await OPEC+ decision
Oil prices traded lower on Tuesday, as markets anticipated this week’s OPEC+ meeting, where the cartel will decide its position on output for the month of July.
In a speech prior to Thursday’s meeting, the Secretary-General of OPEC Mohammad Barkindo, today stated that the Delta variant could play a part in the cartel’s decision.
Barkindo stated that, “The current ‘wild card’ factor is the ‘Delta Variant’ of the pandemic that is resulting in rising cases and renewed restrictions in many regions”.
Many still expect the demand from the United States, China as well as the UK and Europe to remain steady enough to meet the cartel’s targeted output of 6 million barrels per day by the end of the year.
WTI crude fell to an intraday low of $72.07 on the news, before climbing shortly after.
Quote of the day – “Losses are necessary, as long as they are associated with a technique to help you learn from them”– David Sikhosana
Senior Market Analyst