European stock indices extended their selloff on Tuesday, driving benchmarks such as the Euro Stoxx 50 to a two-week low, and wiping out all this month's gains for the French CAC. The German DAX has proved a touch more resilient. But it fell to a 10-day low this morning as investors responded to higher bond yields and crude oil prices, as the ceasefire between the US and Iran formally ended.
Reports suggest that Iran has now pivoted to a fully offensive military posture. Yesterday President Trump said he saw no need to extend the ceasefire. He then lashed out at Oman, an ally of the US in the region, threatening to 'bomb the shit' out of them if they got in his way. The Strait of Hormuz remains effectively closed with nothing passing through, following a brief uptick in traffic after the US-Iran memorandum of understanding was signed in mid-June.
Meanwhile, and despite gains for oil giants like BP and Shell, the UK's FTSE 100 looks weaker than most European, or US, stock indices. As the chart shows, the index has fallen steadily since the end of last month, having failed to break above resistance around 11,000, and is now retesting support around 10,700 and at lows last seen on the 24th of July.
Source: TN Trader
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