{"id":433848,"date":"2026-07-16T11:37:20","date_gmt":"2026-07-16T04:37:20","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/a-more-pensive-mood-awaits-european-traders-in-the-day-ahead-433848\/"},"modified":"2026-07-16T11:37:20","modified_gmt":"2026-07-16T04:37:20","slug":"a-more-pensive-mood-awaits-european-traders-in-the-day-ahead","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/a-more-pensive-mood-awaits-european-traders-in-the-day-ahead-433848\/","title":{"rendered":"A more pensive mood awaits European traders in the day ahead"},"content":{"rendered":"
\n

\ufeffAfter a bit of a breather early yesterday, the US PPI numbers<\/a> for June also came in much softer than anticipated. So, that pretty much extended the relief for markets amid inflation fears creeping back in as the US-Iran conflict reignites again.<\/p>\n

That being said, there is a common theme to note between the two PPI and CPI reports this week.<\/p>\n

The headline readings are largely driven lower by falling gasoline prices. It is the energy component that pretty much contributed to the deflationary month-on-month readings. Even with the PPI data yesterday, gasoline prices showed a drop of 12%. Yes, food prices were also a softer component overall in both reports. However, it still doesn’t take away from the fact that energy prices were the main driver for the deflationary narrative for June. There’s not much more to say to that.<\/p>\n

When you look at core estimates instead, price pressures have not cooled all too significantly. And that’s a telling sign, especially when you compare the year-on-year readings.<\/p>\n

Higher producer prices will continue to feed into consumer prices as things remain sticky, and the situation will not be helped by the fact that the Strait of Hormuz remains in de facto closure. It’s not just a resurgence in oil prices, but the continued impact on supply chains and prices for raw materials as well.<\/p>\n

For now, markets are taking things one step at a time.<\/p>\n

The US and Iran continue to exchange strikes but Trump is still feeding hope that “Iran wants to meet and make a deal”. His pain threshold will very much depend on how the oil market and stocks continue to react to the headlines it would seem.<\/p>\n

And the “good news” in that sense for him is that there was quite a bit of buffer that was built over the past month or so.<\/p>\n

WTI crude is little changed today, still holding just below the $80 mark at $79.50 currently. Meanwhile, US stocks saw much pushing and pulling yesterday but ended up with modest gains. The S&P 500 closed up 0.4% with the Nasdaq up 0.6%. And for now, US futures are pointing to slight gains of 0.1% but the mood music remains pensive at best.<\/p>\n

The other positive point so far this week is that yields are also not breaking the boiling point just yet. 2-year Treasury yields have retreated back to 4.15% from a high near 4.30% while 10-year Treasury yields are settiling back to around 4.55% currently.<\/p>\n

Once again, that’s a signal that buys broader markets some breathing room. And as such, it is keeping things in check today as we look towards the European morning session ahead.<\/p>\n

But as the US-Iran war rages on, the path moving forward will surely still be paved with inflation worries.<\/p>\n

\ufeff<\/p>\n

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This article was written by Justin Low at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

\ufeffAfter a bit of a breather early yesterday, the US PPI numbers for June also came in much softer than anticipated. So, that pretty much extended the relief for markets amid inflation…<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-433848","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/433848","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=433848"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/433848\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=433848"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=433848"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=433848"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}