Daily Summary: US100 gains 2.5%; Fed Bostic remains hawkish 🔴

European indices ended Tuesday's trading session in positive spirits. The German DAX gained nearly 0.45% intraday, while the British FTSE 100 added 0.3%, and the French CAC40 0.35%.

On Wall Street, gains also dominated. The technology-heavy Nasdaq stands out in particular, with gains reaching 2.25%. At the same time, the S&P500 is up 1.42%, and the Russell 2000 is growing by 1.06%. The VIX fear index is down 8.3%.

Fed's Bostic expressed confidence in recent inflation data, suggesting that the Federal Reserve may consider a rate cut by the end of the year if economic conditions align with expectations. However, he emphasized the need for caution, highlighting the importance of confirming that the inflation trend is stable and warning against prematurely lowering rates, which could necessitate future hikes.

This view is somewhat in contrast to the expectations of the markets, which are currently pricing in between 1-2 cuts at a meeting as early as September. Bostic, on the other hand, is considered one of the most hawkish FOMC officials after Bowman. Markets picked up Bostic's speeches with a slight pullback from the daily highs.

Most companies are showing gains. The semiconductor and new technology sectors are leading the growth. A significant rebound is observed in Nvidia (NVDA.US), which is gaining nearly 5.60% at the time of publication.

Such positive market sentiment is primarily due to lower-than-expected PPI data from the U.S., which has increased the chances that the FED will decide on faster interest rate cuts in the U.S.

Starbucks (SBUX.US) shares are up 23% following the announcement of a CEO change. The current CEO, Laxman Narasimhan, is being replaced by Chipotle's (CMG.US) CEO, Brian Niccol, effective September 9, 2024.

Just after the close of the session in Europe, Carlsberg (CARLB.DK) presented its quarterly results. The company recorded solid organic growth in operating profit and raised its profit expectations for this year.

Labor market data from the U.K. turned out to be mixed. On the one hand, the number of unemployment claims rose well above expectations (135,000 vs. the forecasted 14,500), but such a large increase did not push up the unemployment rate, which fell by 0.3 percentage points compared to the previous month. In reaction to the data, the GBPUSD currency pair broke out towards weekly highs. The pair is currently gaining 0.7%.

At the moment, the British pound and the New Zealand dollar are leading gains in the FX market. General weakness, however, is visible in the U.S. dollar and the Swiss franc.

The commodity market is dominated by declines. WTI crude oil is currently down 1.4%, Natgas 1.1%, and gold 0.2%.

A strong rebound is observed in the crypto market. Bitcoin is gaining dynamically, up 4.25% intraday. Ethereum is also up 1.4% at the same time.