Stocks pull back as dollar advances ahead of Fed minutes release - 7.7.2021

[IFC Markets]

Top daily news​

Global stock markets are mostly falling today after US stocks finished lower Tuesday as investors await the Fed minutes with dollar firm amid higher inflation expectations. Amazon shares jumped 4.69% Tuesday amid news Pentagon canceled $10 billion cloud-computing contract with Microsoft after Amazon challenge the decision was result of ‘improper pressure from Trump, Twitter stock rose 1.46% despite the Indian government first official court filing that Twitter Inc. no more enjoys liability protection against user-generated content in India.

Forex news​

Currency Pair	Change
EUR USD	-0.05%
GBP USD	-0.02%
USD JPY	+0.01%
AUD USD	+0.19%

The Dollar strengthening is intact currently . The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, rose 0.3% Tuesday as the Institute for Supply Management (ISM) services PMI declined to 60.1 in June from 63.4 in May when an increase to 64 was expected.

GBP/USD joined EUR/USD’s accelerated sliding yesterday despite Eurostat report euro-zone retail sales rose more than expected in May after a pullback in April. Both pairs are lower currently. AUD/USD joined USD/JPY’s continued sliding yesterday with the dynamics reversed for both pairs currently.

Stock Market news​

Indices	Change
Dow Jones Index	-0.28%
Nikkei Index	-0.98%
Hang Seng Index	-0.71%
Australian Stock Index	+0.8%

Futures on three main US stock indexes are down currently ahead of Fed’s June meeting minutes release at 20:00 CET today. Stock indexes in US ended mixed Tuesday with Nasdaq ending at record high as ISM data showed the US services sector is still growing strongly but had slowed more than expected in June amid supply issues: the three main US stock indexes posted returns ranging from -0.60% to +0.17%.

European stock indexes are edging lower currently after a down session on Tuesday with basic resources shares leading losses as German industrial orders unexpectedly slumped in May, dropping 3.7% over month to mark their sharpest decline since the first covid lockdown of 2020. Asian indexes are mixed today with Nikkei leading losses.

Commodity Market news​

Commodities	Change
Brent Crude Oil	+0.53%
WTI Crude	+0.43%

Brent is retracing higher today. Oil prices ended sharply lower on Tuesday after OPEC+ canceled a meeting when major producers were unable to come to an agreement to increase supply. The US oil benchmark West Texas Intermediate (WTI) dropped 2.4% Tuesday but is higher currently. Brent crude plunged 3.4% to $74.53 a barrel.

Gold Market News​

Metals	Change
Gold	+0.46%

Gold prices are extending gains today. August gold rose 0.6% to $1794.20 an ounce on Tuesday.

 

[Fried_Rice]

Wednesday will be the defining moment of the week. We have some big speeches coming!

 

[IFC Markets]

Markets slump after Powell confirms rate hikes will continue - 29.8.2022​

Todays’ Market Summary​

• The Dollar strengthening is intact
• Futures on US equity benchmarks are down
• Brent is extending gains today as expectations of a supply cut by the OPEC offset heightened concerns over an economic slowdown concerns after Fed’s chair Powell’s speech at Jackson Hole.
• Gold prices are extending losses today

Top daily news​

Equity indexes are down currently after US stocks ended solidly down on Friday after Powell pledged to act “forcefully” against soaring inflation in his Jackson Hole speech. Apple shares plummeted 3.77% amid reports Justice Department lawyers are in the early stages of drafting a potential antitrust complaint against the IT giant, Amazon shares dropped 4.76% underperforming market on Friday.

Forex news​

Currency Pair	Change
EUR USD	-0.2%
GBP USD	-1.18%
USD JPY	+0.8%
AUD USD	-1.48%

The Dollar strengthening is intact currently. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, rose 0.4% on Friday despite Bureau of Economic Analysis report the personal consumption expenditures price index, Fed’s preferred gauge for inflation, dipped 0.1% in July from June, and slowed to 6.3% from 6.8% over year.



Both EUR/USD and GBP/USD reversed their climbing Friday as GfK reported consumer sentiment for September continued to deteriorate while UK energy regulator Ofgem announced its latest increase in the country’s energy price cap and gave a bleak guidance on deepening cost-of-living crisis. Both Pound and euro are lower against the Dollar currently. USD/JPY reversed its sliding Friday while AUD/USD reversed its climbing with both the yen and Australian dollar lower against the Greenback currently still.

Stock Market news​

Indices	Change
Dow Jones Index	-0.3%
Nikkei Index	-2.1%
Hang Seng Index	-1%
Australian Stock Index	+0.1%

Futures on US equity benchmarks are down currently after US stocks sold off on Friday as Powell reiterated his commitment to halting inflation. The three main US stock benchmarks recorded daily losses ranging from 3.0% to 3.9% - registering losses for the week too.


European stock indexes futures are down currently after ending lower on Friday with retail and travel and leisure shares leading losses. Asian indexes futures are mostly lower today with Japan’s Nikkei Index leading losses while data over the weekend showed China’s industrial profits continued to decline in July.

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Commodity Market news​

Commodities	Change
Brent Crude Oil	+1.2%
WTI Crude	+1.3%

Brent is extending gains today as expectations of a supply cut by the OPEC offset heightened concerns over an economic slowdown concerns after Fed’s chair Powell’s speech at Jackson Hole. Prices edged up Friday. West Texas Intermediate (WTI) futures gained 0.6% and is higher currently. Brent crude added 1.7% to $100.99 a barrel on Friday. Both benchmarks gained over 2% on the week.

Gold Market News​

Metals	Change
Gold	-0.88%

Gold prices are extending losses today. Prices ended lower on Friday: spot gold lost 1.1% to $1736.80 an ounce.