- Wall Street indices trade higher today, with S&P 500 fully recovering from yesterday's drop and heading for the highest close in history. Nasdaq-100 recovered around half of yesterday's drop
- S&P 500 and Dow Jones gain 1.2%, while Nasdaq and small-cap Russell 2000 add 1.5% each
- A pullback on US banking shares can be observed today, following release of Q2 earnings reports by JPMorgan, Citigroup and Wells Fargo
- While US banks generally reported better-than-expected sales and profits, they have struck a cautious tone and warned of a build-up in provisions for credit losses
- Wells Fargo is top laggard within the sector, dropping around 7% after missing on net interest income expectations
- European stock market indices traded hgiher today - German DAX and French CAC40 gained 1.3%, UK FTSE 100 moved 0.4% higher, Dutch AEX jumped 1%, while Italian FTSE MIB and Spanish IBEX added 0.7% each
- Energy commodities trade mixed - oil drops 0.4%, while US natural gas prices surge over 3%
- Precious metals trade lower - silver drops 1.6%, palladium declines 2.5%, platinum trades 0.5% lower, while gold trades flat
- Major cryptocurrencies trade higher - Bitcoin gains 1.3%, Ethereum adds 1.2%, while Dogecoin trades 0.9% higher
- GBP and JPY are the best performing major currencies, while USD is among top laggards
- US PPI inflation data released today turned out to be a hawkish surprise and triggered knee-jerk move high in the USD market. Headline PPI inflation accelerated from 2.2 to 2.6% YoY (exp. 2.3% YoY), while core PPI inflation accelerated to 3.0% YoY (exp. 2.5% YoY), the highest level in over a year
- Flash data from University of Michigan for July disappointed. Headline Consumer Sentiment index unexpectedly dropped from 68.2 to 66.0, driven by weaker readings of both Current Conditions and Expectations subindex.
- Short- and long-term inflation expectations in UoM report dropped from 3.0 to 2.9% in July. While such a drop was expected in case of short-term expectations, long-term expectations were seen staying unchanged at 3.0%
- According to Bank of Japan accounts, Japanese central bank may have spent around 3.5 trillion JPY to intervene in the FX market. There are rumours of another intervention today as USDJPY dropped sharply in the early afternoon
- Canadian building permits slumped 12.2% MoM in May (exp. -5.2% MoM)
- SEK dropped after Swedish CPI data showed a slowdown in headline measure 3.7 to 2.6% YoY in June (exp. 2.8% YoY). Core CPI slowed from 3.0 to 2.3% YoY (exp. 2.5% YoY)
- Final French headline CPI data for June was revised higher from 2.1% to 2.2% YoY
- Chinese exports increased 8.6% YoY in June (exp. 8.0% YoY), while imports were 2.3% YoY lower (exp. 2.8% YoY). Trade balance for June showed a surplus of $99.05 billion (exp. $85 billion).
- Japanese industrial production increased 3.4% MoM in May (exp. +2.8% MoM)
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