Equity markets in Europe are trading a little mixed on Tuesday, offering little direction for US futures ahead of the open on Wall Street, while commodities are broadly in the green as oil looks to extend its winning run to five straight sessions. There have been some interesting moves in currency markets this morning, with sterling being particularly volatile on the back of some interesting inflation data.
New highs for this uptrend were seen for the July and the August hogs on Monday. The July is currently the dominant contract due to the higher open interest numbers. rallying 23% since the start of the year for choice.
When will the global oil market get in balance? It already has and according to the International Energy Agency, that process is accelerating. The global oil market has achieved so-called market balance but much work remains to reduce excess global oil supply.
While valuations for U.S. stocks are unambiguously stretched across a variety of measures, but it's hard to see the case for a big bearish reversal as long as corporate earnings continue to accelerate. In other words, turn off the TV, set your newspaper on fire and focus on the fundamentals!
The euro continues to defy gravity. The single currency is up sharply against all of its major rivals, including the pound which took a beating despite stronger UK inflation figures released this morning. The euro/U.S. dollar (EUR/USD) currency pair has broken well past the 1.10 handle, to achieve its best level since early November.