New York: 00:37 || London: 05:37 || Mumbai: 11:07 || Singapore: 13:37

Reports UK

UK stock market commentary (July 07, 2014): Markets on pause

July 7, 2014, Monday, 07:19 GMT | 02:19 EST | 11:49 IST | 14:19 SGT
Contributed by Capital Spreads

European equities are set to open flat on a lack of catalyst over the weekend. With the US out of action on Friday it was a pretty lacklustre session to end what was actually a pretty solid week of gains to kick of July leaving markets perched just below key levels and the question on traders minds is will they bust higher or crash and burn?

For the fourth day in a row, the shared currency dropped against the greenback, this time losing 17 pips to finish the week at 1.3593. Prospects of the ECB keeping interest rates near zero for a prolonged period is undoubtedly putting increasing pressure on the EUR/USD pair especially when the economic recovery across the Atlantic is much better defined.

Ongoing strength for the US dollar continued to put downside pressure on the WTI crude prices which Friday lost another 30 cents to $103.77 a barrel. At the same time energy investors have been slowly unwinding the Middle Eastern premium once has become clear that oil output disruptions were minimal.

Gold prices were largely in check on Friday, closing rather unchanged at $1321 as investors were reluctant to commit too much in either direction. On one hand a fall in Germany’s factory orders provided some support but on the other hand a strong dollar counterbalanced that.

Stock Market Forum