European stock markets are narrowly mixed, after a largely weaker close across Asia. The FTSE 100 is up 0.1%, the DAX down -0.2%. German ZEW investor confidence came in much stronger than expected, which backed hopes of a strengthening recovery. However, that also suggests that the ECB will return to a wait and see stance after a June cut, and Eurozone yields jumped higher after the numbers, which kept a lid on stock markets. U.K. wage growth meanwhile came in higher than anticipated, but comments from BoE Chief Economist Pill leave the BoE on course to cut rates over the summer. That helped Gilts to outperform and the U.K. 10-year rate is currently unchanged at 4.172, while the 10-year Bund yield is up 1.5 bp at 2.52%. Treasuries are off early highs, but the U.S. 10-year rate is still down -0.6 bp as markets look ahead to the U.S. PPI report. The DXY dollar index off session highs at currently 105.201. The front end WTI contract has corrected to USD 78.88 per barrel, while the gold price has inched up to USD 2343.51 per ounce.
