- European indexes had a successful session today. The DAX and CAC40 traded close to 0.7% up; the UK's FTSE, which gained 0.4%, fared slightly less well. Shares of Norway's DNB Bank rallied nearly 6% after the results. On the German stock market, disappointing EBITDA led to a correction on Suedzucker shares
- The main market event today was the CPI inflation reading for June in the US, which turned out to be lower than expected. As a result, Wall Street indexes initially gained, but the final gains are held virtually exclusively by the Russell 2000 index, which gains nearly 3.5%
- The Nasdaq 100 and S&P 500 lose -2% (with the US100 futures down more than 2.5%) and -1%, respectively; the declines are fuelled by a weakening technology sector; especially US 'BigTech' and semiconductor companies. Nvidia is losing more than 5%, and Microsoft is retreating more than 4%.
- We are also seeing a nearly 4% correction in Costco shares. Investors are gearing up for earnings season, which will open 'in earnest' tomorrow with US banks (J.P. Morgan, Wells Fargo and Citigroup)
- Tesla is losing almost 7% today after reports that the presentation of the highly anticipated "Robotaxi" has been postponed from August to October this year. Delta Air Lines shares are also losing nearly 7% after weak results. PepsiCo, meanwhile, erases initial declines and returns to growth after its Q2 report for the year
US CPI for June came in 3% YoY vs 3.1% exp. and 3.3% previously (-0.1% MoM vs 0.1% exp. and 0% previously)
US Core CPI for June came in 3.3% YoY vs 3.4% exp. and 3.4% previously (0.1% MoM vs 0.2% exp. and 0.2% previously)
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Open account Try demo Download mobile app Download mobile app- US June CPI food inflation came in 0.2%, also housing inflation was 0.2% higher, while rent was up 0.3% MoM
US jobless claims came in 222k vs 235k exp. and 238k previously (1.852M continued jobless claims vs 1,86M exp. and 1.858M previously)
- Market expectations of an interest rate cut by the Fed have risen in response to the inflation data. Futures are pricing in a 90% probability of an interest rate cut at the September meeting.
- The inflation data today pushed 10-year U.S. bond yields to 4.19%, the lowest since March of this year.
- The rise in expectations of a US interest rate cut made the dollar the weakest G10 currency today, losing 0.5% in today's session.
- A potential intervention on the yen has made the Japanese currency gain 1.8% today.
- Chinese index contracts gain more than 2%; the Hang Seng was briefly supported by news of further regulations on short selling of stocks, listed on the Chinese stock exchange
- A falling dollar and greater uncertainty about the state of the U.S. economy helped precious metals rise. Gold gains 1.8% today, and silver almost 2%; the VIX volatility index gains more than 2%
- In the energy commodities market, gas lost the most heavily today, posting a 2.5% decline. Today's EIA report on the change in U.S. inventories showed an increase in stocks to 65 bcf versus 56 bcf expected.
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