- Qatar says Iran-Oman Hormuz agreement could clear path for broader US-Iran talks
- ECB policymaker Lane says inflation outlook is highly dependent on US-Iran war
- Germany August ZEW survey current conditions -61.1 vs -69.5 expected
- The bond market is one of the key spots to watch at the moment
- US futures nudge lower on the day, tech shares lead declines
- UK labour market shows further signs of cooling in June
- EUR/USD upside break may have to wait
It’s been a slow session with very limited action in the markets. The lack of notable data and news releases, coupled with the prolonged US-Iran stalemate, has certainly been a major contributor.
The UK labour market continued to lose momentum in June, with employment indicators pointing to weaker hiring conditions and a gradual cooling in wage growth. Private-sector wage growth slowed to 2.8%, its weakest pace since 2020, while unemployment remained at 4.9%. Vacancies also continued to decline, reinforcing the picture of a softer labour market. For the Bank of England, the data reinforces the neutral stance, as policymakers try to balance persistent inflation risks against a soft labour market.
Germany’s August ZEW survey showed investor sentiment improving further, with expectations becoming more optimistic across key sectors including autos, chemicals and engineering. However, the assessment of current economic conditions remained deeply negative at -61.1, although this was better than the -69.5 expected.
On the geopolitical front, Qatar said mediators are waiting for Iran and Oman to reach a bilateral agreement over the Strait of Hormuz before returning to broader US-Iran negotiations. What matters for markets is the prolonged US-Iran stalemate, which keeps inflation risks skewed to the upside and risk sentiment on the defensive.
This article was written by Giuseppe Dellamotta at investinglive.com.