EU Bourses Advance, Oil Jumps

US yields ticked higher yesterday, undermining the mood during the US session, but US equity indices quickly recovered today, trying to catch up to their European peers.

German economy falls off the cliff

In Germany, consumer sentiment crashed to record lows in June. The GfK forward-looking barometer dropped to -27.4 points in July, its lowest level since the series 1991 debut. Consumers perceived a significant chance that the German economy would contract. Income anticipations are at a 20-year low. Nevertheless, the EURUSD pair remained in its slow and steady ascent. 

The GBPUSD pair remains stuck near 1.23 as market players continue to pay attention to the political situation in the UK. Such low volatility is somewhat unusual for this pair, likely leading to an explosive break above 1.23 or below 1.2160.

Meanwhile, "as expected, the Northern Ireland protocol bill passed its first hurdle, with MPs voting 295 to 221 in favor despite heavy criticism from some Conservative backbenchers, including former Prime Minister Theresa May, who said the move is illegal and unnecessary," The Guardian reported.

On their third day of talks in Germany, the heads of the Group of Seven major economies have vowed to support Ukraine "for as long as it takes" in the wake of Russia's invasion.
 

Oil rises again

The WTI oil rose notably on Tuesday as a few large producers signaled output reductions, escalating the supply crunch. As a result, oil jumped above 110 USD again, up more than 8% off its last week's lows in the 103 USD region.

Libya and Ecuador both hinted at a probable decrease in the global supply due to political issues in their nations. This comes before the OPEC meeting this week, which will probably lead to slight output hikes.