European stocks drop, Tech earnings in focus

Markets are mostly muted ahead of tech earnings

By Nadia Elbilassy | @Nadia Elbilassy | 5 July 2023

Midday Market update
  • Japan core CPI spikes at 2.9% vs 2.6% expected and 2.7% previous

  • US consumer confidence expected to decrease to 104.1 vs 104.2 previous

  • Swiss trade balance grows to 4.53B vs 4.20B expected

European Markets

European indices edge lower with Germany’s DAX (DE30) last seen near levels of $15,857 losing 0.20%. While the FTSE 100 declines near $7886 after reaching a higher top yesterday near $7927 and the French CAC index dropped to 7,532.

Markets are mostly muted ahead of tech earnings, after markets saw quite the volatile quarter for the banking sector following the collapse of two regional lenders in the United States last month, as well as the collapse of Credit Suisse.


Gold prices continue trading near $1981 falling almost 1% from last week, as markets price in another rate hike incoming. In addition to positive economic data from last week, including the Eurozone’s PMI Services sector all above 50.

Increasing concerns about the possibility of a recession especially after more and more interest rates are placing heavy pressure on the yellow metal as the strategy favors the USD.


The US dollar index began the second session of the week with a slight uptick, trading near 101.28 points, continuing a series of gains since last week's trading due to hawkish statements by several Fed officials as well as positive data from major sectors within the United States.

In this context, John Williams, a member of the Federal Reserve, stated that inflation is still too high and that the US central bank will take measures to reduce it.

Atlanta Federal Reserve President Raphael Bostic also stated that the US central bank still needs to raise interest rates by 25 basis points at the upcoming meeting.

On the data side, Japan’s core CPI saw a spike to 2.9% from last years 2.7% while Switzerland’s trade balance grew to 4.53B vs 4.20B expected. Focus tonight will be on US consumer confidence data with expectations of sharpened volatility on gold prices.