- Wall Street indices are trading lower, with the downward move being driven by tech sector. S&P 500 trades 1.7% lower, Nasdaq slumps 2.8%, while Dow Jones drops 0.8%. Small-cap Russell 2000 outperforms dropping 'only' 0.6%
- Tech shares underperform following disappointing earnings releases from Tesla and Alphabet yesterday after close of US session. Tesla drops over 10%, while Alphabet trades 4.5% lower
- European stock markets indices finished today's trading lower - German DAX dropped almost 1%, UK FTSE 100 finished 0.17% lower, French CAC slumped 1.12% and Dutch AEX plunged 1.26%
- Japanese yen strengthened today after Reuters reported that Bank of Japan is weighing in a rate hike at next week's meeting. Report also stated that BoJ will unveil plans to halve bond buying in the coming years
- The move lower
- USDJPY dropped below 154.00 mark and reached the lowest level since early- May 2024
- Bank of Canada delivered the second 25 basis point rate hike of the current easing cycle at a meeting today, in-line with markets' and economists' expectations
- Bank of Canada maintained 2.6% inflation forecast for 2024 and lowered 2024 GDP forecast from 1.5 to 1.2%. BoC also boosted 2025 inflation and GDP forecasts slightly, while lowering forecasts for 2026
- However, as such a move was expected, Canadian dollar did not experience any major move in the aftermath of BoC announcement
- DOE reported showed a 3.74 million barrel drop in US oil inventories (exp. -2.5 mb), a 5.57 million barrel draw in gasoline inventories (exp. -0.5 mb) and a 2.75 million barrel decline in distillate inventories (exp. +0.1 mb)
- Flash US manufacturing PMI index dropped from 51.6 to 49.5 in July (exp. 51.6), while services index improved from 55.3 to 56.0 (exp. 54.9)
- US new home sales unexpectedly dropped 0.6% MoM to 617k in June, while market was expecting a 3.4% MoM increase to 640k
- US wholesale inventories increased 0.2% MoM in June (exp. +0.5% MoM). Retail inventories were 0.7% MoM higher (exp. +0.5% MoM)
- US goods trade balance for June showed a $96.84 billion deficit (exp. -$98.70 billion)
- Flash French manufacturing PMI index dropped 45.4 to 44.1 in July (exp. 45.8), while services index improved from 49.6 to 50.7 (exp. 49.8)
- Flash German manufacturing PMI index dropped from 43.5 to 42.6 in July (exp. 44.0), while services index moved lower from 53.1 to 52.0 (exp. 53.3)
- Flash Eurozone manufacturing PMI index ticked lower from 45.8 to 45.6 in July (exp. 46.1), while services index dropped from 52.8 to 51.9 (exp. 53.0)
- Flash UK manufacturing PMI index improved from 50.9 to 51.8 in July (exp. 51.1), while services index improved from 52.1 to 52.4 (exp. 52.5)
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