Market Update - September 19 - Slow markets before 5 Major CBs (Central Banks) decisions
📊 Significant divergence between EU and US indices yesterday, with Dax, Cac down >1% while US ended the day flat.
🌎APAC is down this morning, led by Nikkei. Futures fractionally negative (-0.1%/-0.2%)
📱Energy, Tech have been the best performers yesterday: the former one is widening its outperformance over SP500 in the last 3 months (+14.92% vs +1%).
📉 SocGen felt 12% on cutting costs plan
📈 RBA minutes show officials want to give time to tightening to flow into the economy, despite a ''too high inflation''. AUD little changed, USD strengthening vs EUR, GBP (+0.15%).
🛢Oil keeps pushing its 10m highs
🏦 GS thinks Fed is done, despite Dot Plot
🔜LATER TODAY: EU HICP, Core HICP, US Housing Starts, Cad CPI
👉INTERSTING MOVER: FRA40 -1.39% @7276 after testing the top of the channel with a perfect spinning top on high volumes, it fell hard yesterday led by the slump of one of the largest French bank (SocGen -12%)
China boosting further Stock market sentiment
📈Stocks are breathing a sigh of relief. The global equity market had one of its better days in weeks.
🏦ECB delivered a 25 bp hike & signaled that in the central scenario rates have now peaked.
🏛The ECB stance strengthened belief that the FED might be finished with rate hikes or have only one more planned this year.
🇨🇳China's economy picked up in August: Industrial production & retail sales exceeded expectations, boosting sentiment.
🇺🇸US economy remained resilient: sales report reinforced expectations of soft landing.
💱EURUSD is slightly higher after it slumped to a low of 1.061 from 1.0755, while GBPUSD slid to 1.2397, both the weakest since March.
🛢Oil spiked above $90, heading for 3rd consecutive weekly gain.
🔜Today: US Industrial Production, Empire Index & Prelim UoM Consumer Sentiment.
👉Key Movers: AUDJPY (+0.44%) up for 6 consecutive days, retesting upper trendline of 2-mth range
Market Update - September 12 - Greenback rebounds ahead of US Inflation
📈Wall Street closed slightly higher amid big tech strength. US100 rallied 1.14% on the back of a surge in big tech & JPN225 also jumped nearly 1%.
🚗Tesla climbed 10% after Morgan Stanley boosted its outlook based on expectations on the impacts of the "Dojo" computer.
🇪🇺Today, European futures are higher, US futures slightly lower, as markets await US inflation.
🇬🇧UK wage growth higher than expected - a bit of a negative surprise for the BoE.
💲USDIndex lost a little ground, albeit after 8 straight weeks of gains, currently at 104.63 lows from 104.37. USDJPY higher at 146.85 but Yen holds yesterday's gains.
🛢Commodities – USOil higher as attention shifts to outlook from OPEC & US.
🔜Today: Apple product event, German ZEW Economic Sentiment. OPEC and US EIA monthly market reports.
👉Key Movers: BTCUSD rallied by +2.77% today, after dropping to lowest since June on Monday.
Market Update – September 11 - BOJ & PBOC Caused Turmoil
📉 Verbal intervention from Japan and China helped bolster Yuan and Yen and saw Treasuries fall slightly across tenors Monday as traders await US inflation later this week.
🇯🇵 USDJPY turned around, with Yen rallies with Yields after BOJ Ueda comments on negative rates fueled rate hike speculations.
🇨🇳 USDCNH collapsed just before hitting last year's highs - Yuan off 16-year lows after PBOC sets strong reference rate and threatens to punish market disruption.
📈 Aussie and Kiwi among biggest beneficiaries, each rising close to 1% to hit roughly one-week highs.
🛢 USOil dips short lived after technical rally, however remains above key $84 level, extending gains above 11-month resistance. Currently settled at $86.56.
🧈 Gold retests $1930 once again.
👉 Today: European Commission to release summer interim economic forecast. The central bank’s chief economist Huw Pill speaks at Kent Invicta Chamber of Commerce.
Market Update - September 7 - Futures negative on Oil, rates rise; EU GDP ahead
📉 Another red day for Stocks/Indices: US500 -0.70%, US100 -0.88%, US30 -0.57%.
🏦 Fed's Collins comfortable at current rate levels, not sure if done yet. 2y @5.02%, 10y @4.296.
📘 Fed's Beige Book mentioned ''Recession'' 15 times, vs 3 in May.
🇪🇺 EU markets heading for a lower open Thursday, GDP, unemployment change ahead. DE Factory orders plunged again, EU Retail Sales -1% y/y.
🇨🇳 Chinese Imports, Exports soften less than expected, still show weak global demand.
💲 USD bid, index @104.87, EUR managing to stay above 1.0710, Cable heavier just above 1.25, USDJPY up to 147.87, USDCNY (onshore) gives up and breaks above recent highs.
🛢 USOIL +0.98%, UKOIL +0.67% yesterday.
🔜LATER TODAY: EU employment change, GDP, US Jobless claims, FED's Williams, Bostic, BOC's Governor speech.
👉 INTERESTING MOVER: GBPUSD (-0.57% @ 1.2498) remains heavier than other peers, has broken recent lows and heading toward 1.2440 support.
Market Update - September 5 - RBA on hold, Chinese services deteriorate after Monday without US lead
🏦RBA left cash rate at 4.1% as expected, on hold for 3 months now.
🇦🇺AUD is the weakest currency, dragging down first NZD, then other Asian currencies: USDJPY faces 147 (146.70), USDCNH 7.29. USDIndex @ 104.15.
🌏After some decent Manu PMIs, China Services shows lowest reading in 9 months. APAC down, Country Garden avoids default.
🇪🇺It has been a quiet session in Europe, missing Wall Street's lead: GER40 -0.1%, FRA40 -0.24% Trade Surplus in Germany fell 15% m/m.
📉UBS expects economy to show clear signs of slowing by November, putting an end to the FED tightening cycle.
🔜LATER TODAY: HCOB PMI Services & Composite in DE, FR, IT, SP, EU, EU PPI, US Redbook and Factory orders, Lagarde speech.
👉INTERESTING MOVER: BTCUSD -0.79% last 24h at 25726 keeps hovering around the crucial 25250 area that happens to also be the 200d MA.
Market Update – September 1 - The Calm Before the Storm?
📅 Month-end buying supported, markets on the last day of August, awaiting the key jobs report on Friday.
💲 Treasuries and the US Dollar firmer, but off their best levels. US data added further support for the USD as markets assess the interest rate outlook.
🌎Asian stock markets advance after a rise in Chinese manufacturing, with Nikkei and CSI 300 nudged higher.
🇪🇺 🇬🇧 EUR and Sterling corrected today as markets reined in tightening expectations for BoE and ECB, with yields dropping across the board and Eurozone spreads coming in.
💬 Villeroy says September decision is still wide open.
🏛 Swiss CPI inflation held steady at 1.6% y/y in August, a slightly higher than expected report.
👉 Key Movers: USOil & UKOIL have extended gains by 1.25% to 87.15 and 1.9% to $83.19 respectively as Bloomberg reported that Russia has agreed with OPEC+ to extend output cuts.
🏦Strong gains continue in Treasuries, Wall Street & Asian stock market today on speculation Fed is nearing the end of the tightening cycle.
🇺🇸USDIndex slumped on less hawkish Fed outlook. Treasuries outperformed and curve bull disinverted to -76 bps.
🇩🇪 German CPI helped bolster speculation of ECB pause, especially after dismal confidence.
📈 Mega-caps stocks climbed. Gains were broadbased but paced by communication services, consumer discretionary & IT. US500 rose for 3rd day and broke 4500 level.
🚀 Nvidia jumps by 4.16% as Google AI Alliance expands. Disney at 9-yr lows.
🛢USOil higher, rallying 1.3% to $81.33, the highest in over a week.
🧈 Gold spiked to $1,938 & likely to remain resilient.
₿ BTCUSD rose 5.32%, currently settled at 27,354.
🔜Today: US ADP and Preliminary GDP Price Index in focus.
👉 Key Mover: USOIL (+0.54%) extended more than 50% of August downleg, with next key resistance levels at 81.60 and 82.30.
🇨🇳 China bourses rallied after Beijing lowered stamp duty on stock traders for first time since the 2008 financial crisis and pledged to slow the pace of initial public offerings.
🏛Jackson Hole: Powell, Lagarde & Broadbent stressed determination to bring inflation down, that will warrant keeping rates restrictive for some time, if not call for additional rate hikes down the road.
📈 Stocks - Hang Seng & CSI 300 up 0.4% and 1.5%. JPN225 & ASX gained 1.7% and 0.6%. EU & US futures rallied on open. 💻 NVIDIA -2.43%, TESLA +3.72%, China Evergrande Group -87% early today adding to the uncertainty over one of China’s biggest restructurings ever.
⛽️USOil held at $80 as China's measures helping offset concerns about increased supply and monetary tightening in US & Europe.
₿ BTCUSD -0.47% at 25,872.63, ETHUSD -0.45% at 1638.50.
🔜Today: German Buba President Nagel, ECB Guindos and Schnabel are set to speak.
👉 Interesting Mover: GBPUSD held below $1.2600, forming interesting possible head and shoulder formation.
Market Update - August 24 - NVDA posts stellar Q2 results; Stocks, Bonds, Metals rally on eve of Jackson Hole.
🚀NVDA posted stellar Q2 results, topping expectations both on Revenues ($13.51b) and EPS ($2.70) and raising Q3 forecast. Up 6.57% after-market.
💻Semiconductors stocks benefit around the world, from AMD to TSMC; China50 +1.48%.
📊PMI data moved FX: in the morning EUR and GBP tumbled, worse than expected US data weakened USD. EURUSD rebounded on its 200MA @1.0802.
📈Bonds rallied, Gilt +2.13%, Bund +1.11%, US 10Y +0.77% after almost testing last October's lows.
⛽️A bigger than expected drain from Crude Oil stocks failed to boost USOil.
🏠US mortgage applications fell to an almost 3-decade low.
📈Indices added to this week's rally.
🧈Gold @ $1920, Silver +3.80% yesterday.
🔜LATER TODAY: US Durable Goods Orders, Jobless Claims, JACKSON HOLE kicks off.
👉INTERESTING FX MOVER: USDIndex pulled back after rising as high as 103.90, possibly testing the upper bound of a channel. Above LT MAs.
Market Update - August 22 - US 10 year yield hits decades-long high, Tech rallies
🇺🇸US 10Y yield rose to the highest level since 2007, 4.342%; 2Y trades >5%, 10Y real rates briefly exceeded 2%
💻Despite that, Tech rallied: US100 (+1.65%) had its best advance of the month; US500 +0.69%, US30 -0.11%
🚀HSBC's upgrade boosted NVDA +8.47% before tomorrow's earnings; TSLA +7.33%, META +2.35%. ZOOM jumped 4% after market
👩💻Softbank's (+3.36%) chip unit ARM is set to list at Nasdaq, becoming the largest IPO of 2023. JPN225 +0.9%, China down again (-0.46%)
💵 USDIndex is steady at 103.14, EURUSD north of 1.09, GBPUSD at 1.2772: both are trading between the respective 50- and 200-day MAs. USDJPY is above 146.
🔜TODAY: Richmond Fed Index, speeches from Fed’s Barkin, Bowman & Goolsbee
📈MOVER OF THE DAY: Nvidia rose 8.47% to $469.67, jumping above its 50-day MA and putting its recent highs ($480) in sight. HSBC raised its target price to $780.
The 15th BRICS summit is set to unfold from August 22 to 24, 2023, with Sandton, South Africa’s iconic skyline, painting the backdrop. At the epicentre of this summit rests a notion that could potentially recalibrate the global financial paradigm: the inception of a unified BRICS currency.
Read the full analysis for more➡️ https://bit.ly/marketupdate_gl
#HFM #marketupdate #brics
📊 Higher Retail Sales & hawkish Fed voter Kashkari & sluggish Chinese economy added pressure on Stocks
🇨🇳 Yuan hits 9-mth low after PBOC cuts key policy rates & China's new home prices fell for 1st time this year weighing on sentiment
📈 Longer-term Treasury yields hit their highest level this year
🇳🇿 NZDUSD spiked at 1.5990 as RBNZ left OCR unchanged at 5.50% as expected but signaled risk of another hike to tame inflation
🇬🇧 GBPUSD breached 1.2740 as stubbornly high UK core inflation strengthened bets of another rate hike from BoE
🏛 Bank stocks fell overnight after Fitch stated it is considering lowering multiple bank ratings
📢 JPN225 fell 1.5%, US30 falls 1.02%, US500 down 1.16%, US100 loses 1.14%
💻 Intel to drop $5.4 bln deal with Tower
🛢 USOil declined over 1% to $80.06 as China jitters weigh on demand outlook, outweighing declining US stockpiles
🧈 Gold repeatedly retests $1,900
🔜 Today: US building permits, & industrial production, Fed minutes & earnings from Target & Cisco Systems
Market Update - August 11 - CPI figure results in a rollercoaster day, UK GDP beats, Yen tumbles
🇺🇸 US CPI slightly better than expected yesterday but core component at 4.7% still too high: no change in rates expected this year
📊 Stocks failed to maintain initial gains and closed close to daily lows
👉 Bonds behaved similarly: after some initial gains they've been sold off, 10y well above 4% again. GOLD dropped to $1910.
💲USD initial weakness reverted too, USDX had an 88 cents True Range. YEN plunging close to 2023 lows and intervention zone, USDJPY 144.72 now
🇬🇧UK GDP just released, better than expected, Sterling the best major performer this morning, CABLE above 1.27
🇨🇳 Pain in Chinese real estate deepens as Country Garden (developer) hits a new low while the central government is moving billions of debt to local authorities: China50 -1.88%
👉 US Futures are flat and set for a 2nd low week, FAANG+ negative too
Later today: US PPI and Michigan Consumer Sentiment
🇪🇺 European gas prices rise 30% on fears over Australian supply.
🛢 USOil spiked to $84.26 breaking 11-mth highs, supported by gas spike. The pop in USOIL prices added to anxiety over inflationary pressures.
📊 Stock market sentiment also improved as investors look ahead to key US inflation data. Overnight however, Stocks tumbled and Treasuries sagged, while Asian stocks broadly fell on Thursday, hovering close to a 1-mth low, still reeling from China's slip into deflation.
📣 Earnings: Disney misses revenue forecasts, reported streaming losses totalled $512mln in its fiscal third quarter.
💲USDIndex was little changed at 102 after trading in a narrow range from 102.29 to 102.58.
👉 Biggest FX Mover: CHFJPY (+0.56%) spiked to 164.89, with 165 the next resistance level.
👉 Today: Position squaring, a case of cold feet, and nervousness over the potential for stronger than expected Inflation data that could keep the FOMC on a tightening path weigh. Focus on Alibaba Group Holding Ltd earnings due later.
Market Update - September 18 - Central Banks Week kicks off
🇺🇸US Futures fractionally positive this morning (+0.1%/+0.2%) following lackluster Friday session
📉Worse than expected Michigan consumer sentiment + news about UAW strike sent US500 -1.22%, US100 -1.75%, US30 -0.83%. Second week in a row of losses for US indices; US30 eked out +0.1% gain
📱Tech was hardest hit during the week, -2.2%; utilities biggest winner, +2.8%
🌎 APAC is in red (-0.7% - 0.85%) with exception of China50
💲 USDIndex at 104.89 with some relative strength from antipodeans
🛢Crude Oil at $91.39, close to 10 mth high.
Yield rates close to recent highs along the curve, XAU +0.23% @ $1928
🔜 LATER TODAY: Canadian Housing starts, US Net Long Term TIC Flows
👉INTERESTING MOVER: Gold, +0.22% @ $1928.09 in very tight range between 50d and 200d MAs and close to upper bound of a descending channel
Market Update - September 14 - A hotly contested day ahead!
🏦The ECB meeting takes place today with reports that the updated staff projections will push the 2023 inflation forecast above 3% having boosted bets of another 25 bp hike. A hawkish pause would not be a surprise but is less likely.
🌎Asian stocks inched higher as investors shrugged off stronger than expected US CPI and anticipate ECB decision.
💲USDIndex is at 104.60, while USDJPY holds above 147.00 floor, eyeing 148.
✈️Stocks of airlines were some of the biggest losers, while Amazon climbed 2.6%, Microsoft gained 1.3%, & Nvidia rose 1.4%. Moderna rallied 3.2% after encouraging results from flu vaccine trial.
🛢Oil well supported as markets focused on prospect of sustained supply tightness this year. USOIL $88.60, recovering from $87.60 lows.
🔜Today: ECB rate decision & Press Conference, US Retail Sales and PPI.
👉Key Movers: XAGUSD (-1.18%) broke 5-day range, extending September's downleg, with attention turning to 22 and 21 Support level.
Take a look at the key events to look out for the week.🗓
Check our Economic Calendar for more!
Market Update - September 8 - Japanese & EU GDP miss, CNH breaks 2023 lows
🇪🇺EU stocks closed lower for 7th day in a row amid another streak of weak data (GDP/Employment)
📉 Nasdaq down for 4th day in a row, AAPL weighs; US30 eked small gain. Technology worst sector, Utilities outperformed
📈Futures trading is starting on the right foot, US +0.05%/0.1%, GER40 +0.25%
📊Jobless claims at multi-month low, unit labor costs unexpectedly increased
🌏 APAC stocks lower amid US-China tech-related frictions, JPN225 underperforms on disappointing GDP data. HK trading closed for typhoon
💲USD set for 8th consecutive winning week, CNH breaks below 2023 lows
🧈 Rates eased a bit, Gold up at $1925
🛢Oil keeps consolidating, Brent lost $90 level
🔜LATER TODAY: DE CPI/HICP, Canadian Unemployment rate.
👉 INTERESTING MOVER: Apple is down 6.54% in 2 trading sessions after the Chinese ban (for government employees) and days before the iPhone launch event.
Market Update - September 6 - Saudis, Russia extend production cuts
📉Saudis, Russia extend production cuts (1mbpd/300k) to end of year. Brent hits $90
🇦🇺Australian GDP slows less than expected to +2.1% down from 2.3%, no meaningful impact on AUD or AUS200
📈Yields up, USD up, Gold down despite Fed Waller optimism
📊USDIndex reached highest since MAR23, USDJPY hit 147.81, CNH touched 7.325 while EURUSD is close to critical levels (1.071/1.0735)
🇪🇺Poor performance for EU indices after mixed data (good PPI, bad PMI)
🇺🇸US futures red for the day (not Nasdaq), trading session soured again during the last hours. Only Energy, Technology, Consumer discretionary snapped a gain
🔜LATER TODAY: DE Factory Orders, EU Retail Sales, US Trade Balance, PMIs, BOC IR decision, Fed Beige Book
👉INTERESTING MOVER: USOil added another +0.84% ($86.7) to more than 2 month long 30% rally. Resistances at $88.5/$89 and $92.5/$93 areas
Market Update - September 4 - The first full week of a historically negative month for Stocks and Gold kicks in
🇺🇸🇨🇦 US, Canadian cash markets closed for Labor Day
🌏 In APAC, Hong Kong leads gains (+2.73%) on Real Estate stocks surge. China +1.86%, JPN225, AUS200 +0.6%
📅 On Friday, NFP +187k slightly above expectations. Previous 2 months revised -110k. Unemployment rate jumped at 3.8% (3.5% exp.) on Labor Force participation increase (+0.2%), Hourly Earnings pressured
💹 Yields & USD plummeted after the data before reverting the move, up on the day. Heavier selling pressure on the long end, resulting in the curve steepening
⛽️ Crude +2.30% on Friday, as evidence mounts of the cuts making their way into the stocks
Copper hit $390 before sellers emerged on decent Chinese Manufacturing data
🔜LATER TODAY: German Trade Balance, Switzerland GDP, EU Sentix confidence, Lagarde speech
👉INTERESTING MOVER: TESLA -5.06% at $245.01 after lowering US prices of its Model S and X for the 7th time in 2023
Markets sustain the "Bad News Is Good News" stance
🌎Asian stock markets traded mixed, with mainland China bourses underperforming.
🇨🇳Chinese manufacturing contracted in August for 5th straight month, while China’s property sector deals with renewed liquidity crisis.
🇩🇪German retail sales disappoint again
💲USDIndex recovered to 103.25 from 102.84 lows, EURUSD turned to 1.0889 from 1.0949 and USDJPY lifted to 146.30 with the Yen still close to the weakest level in over 9 months as markets continue to test the resolve of officials to keep the currency underpinned.
📈US100 surged 1.74%, while US500 advanced 1.45%, with US30 up 0.85%.
🏦UBS reports huge 2Q profit skewed by CS takeover
🛢USOil sideways at 81.44 failing to break 61.8% Fib. level from August downleg.
🔜Today: EU CPI readings likely to surprise on the upside, while the July income, consumption, PCE deflator numbers will be scrutinized, along with weekly jobless claims.
👉Key Mover: XAUEUR (+0.51%) retests 2-month Supply Zone at 1785-1795.
Market Update - August 29 - Stock markets supported by China hopes & falling yields
📈Treasuries and Wall Street rallied to kick off the last week of a pretty bearish August. US100 advanced 0.84%.
📝 The auctions of 2- and 5-y Treasury notes Monday drew the highest yields since before the 2008 crisis, reflecting the US bondS selloff in anticipation of Fed rate hikes. This is the first 5% handle & the highest award rate since July 2006.
🇺🇸 USDIndex weakened against G10 and dipped to 103.73. EURUSD spiked to 1.0837 (strong resistance at 1.0840).
🇯🇵 USDJPY sideways. Goldman sees Yen falling to 1990 levels if BOJ stays dovish, while this morning Japan's July unemployment rate came in higher than expected.
🇩🇪 German consumer confidence dropped to lowest level since May - those numbers don't necessarily mean ECB will pause next month.
🔜Today: US Home Sales, JOLTS & Consumer Confidence.
👉Interesting Mover: EURAUD (-0.26%) broke below 1.6800, with a bearish cross of 10- and 20-period EMA extending lower.
Market Update - August 25 - Powell at Jackson Hole, inflation mission not accomplished yet
🏦 US equity markets cautious before today's Jackson Hole Powell speech
📉 US100 -2.19%, US500 -1.35% (2nd worst day of August); US30 tumbled 1.08% (worst day since March)
📉 JPN225 leads losses in Asia, -2%, China50, AUS200 flat.
📈 Yields slightly higher, USD king, index @ 104.10, EUR < 1.08, GBP 1.258. Turkey hiked to 25%.
🛢USOil bid for 2nd day, Palladium sank almost 3%, -0.88% now.
🧈GOLD -0.15% at $19.13.
👉Powell expected to be neutral but will probably have to be very slightly hawkish.
🔜LATER TODAY: Powell speech, German IFO, US Michigan Consumer Sentiment index, ECB Lagarde speech.
Market Update - August 23 - Waiting for Nvidia, PMIs & Jackson Hole
🌎US futures up (US500 +0.50%, US100 +0.67%) after a negative day yesterday, Europe outperforms.
💲Investors bought USD yesterday, USDIndex rebounded from 200MA, EURUSD lost 98 pips from highs to lows, JPY eked out gain.
🛍 Retailers results mixed: Macy's -14%, Lowe's +3%, Urban Outfitters +5% after market, Nike down 8 days in a row (worst streak ever)
📈 Bond market steady, XAU > $1900, XAG outperforms (+1.38%) and trades at $23.75
⛽️ Crude Oil below $80, down 3 days in a row, UK Oil slightly outperforms
🔜LATER TODAY: NVDA earnings ATC, EU, UK, US PMIs, EU Consumer Confidence, US Home Sales.
👉INTERESTING FX MOVER: EURUSD (-0.26% at 1.0816) after having stopped yesterday's fall at the 1.0845 support area is now tumbling towards its 200DMA after bad European PMIs.
Market Update - 21 August - PBOC disappoints, markets quiet
📈 DM Futures fractionally higher, US lead (+0.10% on average) after last week marked 3rd consecutive losing week for US100 & US500: the last such negative streak was last winter. VIX @ 18.30.
🌏 APAC traded mixed after recent PBOC efforts were nullified by a narrower than expected cut to the 1y Rate (-0.1% vs -0.15% exp) & the 5y LPR was kept unchanged.
📜 Bonds recovered from losses on Friday but are down again this morning. Curve is steepening.
💲 USD steady above 103, CNH in sight of recent lows (7.32 now), NZD and AUD dragged by their ties to the Asian economy.
🧈 Despite trading below $1900 and real rates at multi-year highs (1.948%), XAU is hovering around $1890 support.
🛢 CRUDE had its 1st losing week after 7, +0.45% this morning.
🔜LATER TODAY: German PPI.
Interesting Mover : Last week BTC clearly broke the upside channel it has moved within since the beginning of 2023, searching for support at $25000.
Market Update - August 17 Stocks down Treasury yields up
🏦FOMC minutes: "most participants" continued to see "significant upside risks to inflation".
📊Today, implied Fed funds futures continue to show federal funds rate steady at 88% at its next meeting.
📉Wall Street & Asia stocks finished in red, on concerns over a sustained period of elevated interest rates in the US and weaker than expected results at Tencent.
🎮Tencent missed estimates due to weakened consumer confidence and gaming sales that fell short of projections.
🇯🇵Japan's exports declined in July, dragged down by waning demand in China for computer chips and automobiles.
🇺🇸USDIndex highs at 103.47.
💹USDJPY has climbed to a high of 146.56, as some of the haven demand for Yen fades.
⛽️USOil dropped to $78.63 & Gold held below $1,900.
📅 Today: Walmart earnings, US unemployment claims, Philly index.
💱 Biggest FX Mover: GBPAUD (+0.45%) spiked to 1.9970, appreciated by more than 4.6% in August.
Market Update - August 14- Asia in the doldrums: CNH, CHINA50 slide, JPY nears 2022's intervention zone
🇨🇳China, HK down >2% as Developer Country Garden slumps almost 15% to new lows after suspending the trading of 11 onshore bonds. Jan2024 drops to 9 cents, aka 2500%. A big default is coming to China.
👉 Last Friday PPI rose more than expected: it tends to reflect price changes before they filter to CPI.
🇺🇸 US indices ended the day in red, 2nd weekly decline for US500 and US100 that closed below its 50MA. Futures in red this morning.
💲USD locked in its 4th weekly advance in a row, OIL its 7th. Energy sector now leads.
👉 USDJPY touched 145.20, USDCNH is trading at 7.2772: this would be the highest settlement of 2023
LATER TODAY: poor economic calendar, Japanese GDP, RBA minutes and Chinese Retail Sales + Industrial production tonight
SIGNIFICANT FX MOVER: USDJPY refreshes 2023 highs at 145.20 and nears last year's intervention zone
Walmart, Home Depot, Target. There will be a lot of attention paid to the #earnings next week, as the giants of big box retailing will give their quarterly earnings.
📅 Check our Earnings Calendar to learn more ➡️
https://bit.ly/earnings_telegram
#HFM #earningseason
Market Update - August 9 - Defensive Stock Markets
🇨🇳 China faces deflation as data for July showed both consumer and producer prices dropped versus July 2022.
🏛 Regional bank stocks fell Tuesday after Moody's downgraded 10 small and medium sized banks.
📊 Stock markets across Asia were mostly under pressure as yesterday's bout of risk aversion lingered.
📈 US100 declined -0.79%, while US30 was down -0.45%, with US500 falling -0.42%. Financials and materials underperformed. JPN225 closed with a -0.5% loss.
📊 Yields continued to decline and Bonds are also higher in Europe and US, while European and US futures are finding buyers after yesterday's sell off.
💲USDIndex corrected from yesterday's highs and is at 102.334 as risk appetite improved.
🧈 Gold is 0.3% higher at $1,930.18.
👉 Key Mover: USOIL retests 10-mth resistance, while it has fully recovered week's losses and is currently settled at 82.70.
