Red bags, the euro is at a 20-year low. Gas above 170 euros with Norwegian strikes

(Il Sole 24 Ore Radiocor) – European stock exchanges lost their initial momentum and turned red, with continued concerns about growth and inflation: sales on mining companies, insurance companies and cars, but also on banks led to the decline of all listings. The euro, which touched its lowest level since the end of 2001, fell just above $1.03. Assumptions about the will of the United States to support the lists are not enough Reducing import tariffs on some Chinese goods in order to contain inflation. The tariff issue, according to reports from Xinhua, was among those discussed in the phone call between Chinese Vice Premier Liu He and US Secretary of State Janet Yellen. In the markets, uncertainty prevails over the macroeconomic situation, exacerbation of inflation and possible stagnation also caused by the restrictive measures of central banks.

The euro fell below $1.03, to its lowest level since the end of 2002

The euro slips to a 20-year low against the dollar. After holding 1.04 at the opening of the continental markets, the single currency gradually declined until it broke through the $1.03 threshold, the lowest level since Christmas 2002.

The data confirmed the slowdown in the economy European SMEs. Eurozone services fell to 53 points, an indication of expansion, however, it slowed compared to the previous month. The composite index also fell to 52 points, marking the slowest rate of expansion in 16 months.

Awaiting Fed Minutes (Wednesday) and Jobs Data (Friday)

In this regard, attention is likely to be focused Minutes of the last meeting of the Federal Reserve (As the cost of US funds increased by 75 basis points) expected for Wednesday, July 6th. The market is allocating an approximately 85% chance of squeezing another 75 points this month and expects interest rates in the US to be in the range of 3.25-3.5% by the end of the year. And on Friday, July 8, will come the turn of employment data in the United States, where looming in June a slowdown in job growth to 270 thousand.

Watch out for Energy raw material prices Which in Monday’s session, July 4th, represented the main supportive factor for stock prices: natural gas still extends and exceeds 170 euros per megawatt-hour on the TTF platform, also thanks to the strikes in Norway that could lead to a reduction in production. to 25% between now and Saturday.