In August, the USD strengthened against major currencies, with the dollar index up 2.28%, EURUSD down 1.83%, USDJPY up 2.83%, GBPUSD down 1.96%, USDCAD up 3.25%, and AUDUSD down 4.64%. Meanwhile, major global stock indices experienced declines, led by Hong Kong's Hang Seng index and China's Shanghai composite index.
The S&P 500 and other major indices are showing bearish signals, with potential for a significant drop, while the dollar is expected to maintain its upward trajectory and strong economic data could lead to a breakout in interest rates. Additionally, Meta's stock is on a downward trend and the KBW NASDAQ BANK Index is at risk of further decline.
Stock indices finished the trading session in the green, with gains seen in the Nasdaq 100, S&P 500, and Dow Jones Industrial Average. However, Texas manufacturing experienced a downturn in August, and gas prices have slipped across the country. U.S. stock futures are trending higher, and traders are awaiting key economic releases and earnings reports this week. In Asian markets, indices ended higher, but Evergrande Group's shares plunged while Xpeng's shares rallied.
The US dollar experienced a major technical reversal due to a weaker JOLTs report, leading to a drop in US interest rates, while market positioning played a role in the price action; the focus now shifts to personal consumption figures and US jobs data, with the euro and sterling firm but most other G10 currencies softer, and emerging market currencies mixed. In Asia, most large bourses advanced, but Europe's Stoxx 600 fell after rallying in previous sessions, while US index futures traded softer; European bonds are selling up, gold is consolidating, and oil prices are firm. Australia's CPI slowed more than expected, China is expected to release the August PMI, and Japan reports July retail sales. The US dollar has seen no follow-through selling against the yen, yuan, or Australian dollar, while the euro and sterling staged impressive price action. The JOLTS report saw the dollar and US rates reverse lower, and today the US reports advanced merchandise trade figures for July, with the Canadian dollar as the worst performing G10 currency yesterday.
Stock markets showed signs of improvement last week, fueled by hopes of a Goldilocks economic scenario, despite downward revisions in Q2 GDP growth and a slowdown in housing prices, while robust hiring and a decline in wage growth raised concerns about a cooling job market. The strength of U.S. consumers and the moderation of the Consumer Confidence index are factors that could influence the Federal Reserve's decisions on inflation, with investors advised to rely on trustworthy data and analysis. Noteworthy upcoming earnings and dividend announcements include Zscaler, Gitlab, GameStop, C3ai, American Eagle, DocuSign, and Kroger. Key economic reports this week will focus on Factory Orders, ISM Services PMI, and Q2 Non-Farm Productivity and Unit Labor Costs.
US indices started the week on a subdued note as oil prices reached a 10-month high, causing concerns about global inflation, while US Treasury yields rose and the US dollar reached a ten-month high.
Stock indices finished today’s trading session in the red, with the Nasdaq 100, S&P 500, and Dow Jones Industrial Average all falling. The technology sector was the session's laggard, while the utilities sector was the leader. The U.S. 10-Year Treasury yield increased, and the Atlanta Federal Reserve's latest GDPNow reading estimates that the economy will expand by about 5.6% in the third quarter. The Federal Reserve released its Beige Book report, noting a tourism boom but slower spending in other areas. The ISM Non-Manufacturing Purchasing Managers' Index came in higher than expected, and mortgage applications fell to their lowest level since 1996. The U.S. trade deficit widened less than expected in July. U.S. stock futures inched lower, and European indices trended lower. Asia-Pacific markets were mixed.
Wall Street's major indexes closed slightly higher but posted weekly declines as investors remained concerned about rising interest rates and awaited U.S. inflation readings.
The U.S. dollar index had its eighth consecutive week of gains, while global stock indexes ended slightly higher before key U.S. inflation data, with concerns that high interest rates may remain in place for longer than expected despite the Federal Reserve likely keeping rates unchanged this month. Longer-dated Treasury yields eased, Apple shares rose slightly after two days of losses, and oil prices increased.
Oil prices surge to the highest level in 10 months as Saudi Arabia and Russia extend production cuts, raising concerns about inflation and higher interest rates, while the resilient U.S. economy strengthens prospects for interest rate hikes; tensions escalate in the auto sector as contract negotiations with major automakers continue; GameStop CEO Ryan Cohen faces scrutiny from the SEC over stock trades; Apple's market value plummets due to concerns over China's ban on public workers using foreign-branded devices; semiconductor stocks weaken amid export restrictions on China; energy sector excels while industrials and utilities lag; upcoming key economic data to watch includes inflation rate, Producer Price Index, retail sales figures, and Michigan Consumer Sentiment data.
The US dollar's strength in the foreign exchange market, along with discussions of de-dollarization, highlights the divergence between the US and other major economies. The Dollar Index is on an eight-week rally, reaching a record high in international payments, while the euro's share has declined to a record low. In the week ahead, the US CPI and the ECB meeting are expected to be major events, with the US showing signs of inflation and weaker demand, and the euro facing challenges amid stagnation and inflation. China's CPI and PPI have shown some improvement, but the focus will be on yuan loans and real sector data. The eurozone's focus will be on the possibility of a rate hike by the ECB and the release of July industrial production figures. Japan's household consumption continues to fall, and the country may experience a contraction in Q3. The UK will release employment data and GDP details, while Canada will see data on existing home sales and the CPI. Australia will release its August employment data, and Mexico's peso positions may continue to adjust due to the winding down of the currency forward hedging facility.
Stock indices finished today’s trading session in the green, with the Nasdaq 100, S&P 500, and Dow Jones Industrial Average all gaining, while the energy sector fell and the consumer discretionary sector led; individuals held a relatively steady stance on inflation expectations but had growing concerns regarding employment prospects and obtaining credit, according to a report from the Federal Reserve Bank of New York, while Treasury Secretary Janet Yellen expressed confidence in the stability of the U.S. economy, citing controlled inflation and positive employment trends.
Global markets ended higher as energy stocks climbed supported by Saudi Arabia and Russia's decision to extend supply cuts, while Wall Street's key indexes saw weekly declines due to investor concerns over interest rates and anticipation of upcoming U.S. inflation data. In Asian markets, Japan's Nikkei 225 ended down, Australia's S&P/ASX 200 was up, and Chinese shares rose following improved data on consumer price inflation. The Eurozone's economic growth outlook has been downgraded by the European Commission, and crude oil prices fell.
Stock indices closed in the red, with the Nasdaq 100, S&P 500, and Dow Jones Industrial Average all experiencing declines, while the technology sector underperformed and the energy sector led the session. The U.S. 10-Year Treasury yield dropped, while the Two-Year Treasury yield increased. The Small Business Optimism Index for August decreased, with inflation cited as a major concern among small business owners. Stocks opened lower on Tuesday, and U.S. futures trended lower as well. This week's focus will be on the Consumer Price Index and Producer Price Index data, which could impact the Federal Reserve's decision on rate hikes. Oracle's stock fell after missing sales estimates, while Casey's General and Tesla saw gains. JPMorgan's CEO criticized new Basel III regulations, and European indices traded in the green. In Asia-Pacific, markets ended mixed as traders await U.S. inflation data.
Stock indices closed lower today, with the Nasdaq 100, S&P 500, and Dow Jones Industrial Average all experiencing declines, while the technology sector was the session's laggard and the real estate sector was the leader but still lost ground. Additionally, the U.S. 10-Year Treasury yield and Two-Year Treasury yield both increased.
The major indexes, including the Dow Jones, S&P 500, and Nasdaq, finished lower on Friday ahead of the Federal Reserve meeting next week, with tech stocks dragging the Nasdaq lower and the S&P 500 and Nasdaq both falling below their 50-day moving average.
U.S. stocks slumped amid mixed sentiment about the economy, with only the Dow Jones Industrial Average rising for the week, while European markets and the euro ticked up slightly. Famed investor Ray Dalio advised traders to hold cash as Treasury yields climb, and venture firms Sequoia Capital and Andreessen Horowitz face a significant loss on their investment in Instacart. Disney's potential sale of media assets signifies the end of traditional TV, and the Federal Reserve's meeting this week and FedEx's earnings announcement will provide insight into the global supply chain. U.S. consumer sentiment has edged down, but investors remain upbeat about the outlook for stocks and the economy.
U.S. stocks remained stable as investors anticipated the outcome of the Federal Reserve's September meeting, while the pan-European Stoxx 600 index fell due to various negative factors including the departure of Lonza's CEO and Societe Generale's cost-cutting plans; in other news, Instacart priced its IPO at $30 per share, valuing the company at around $10 billion, and strikes in the U.S. have caused the highest number of lost labor hours in decades.
Stock indices are in the red as oil prices continue to rise, with Chevron's CEO predicting prices could reach $100 per barrel due to reduced US shale oil output and OPEC's supply cuts, while the US Federal Reserve is holding off on easing liquidity until there is a significant reduction in wages to counterbalance a current yearly wage increase of 4.3% and maintain a 2% inflation rate.
U.S. stock markets closed lower amid risk-off sentiment as the Federal Reserve began its two-day monetary policy meeting, while Asian markets, including Japan's Nikkei 225 and Australia's S&P/ASX 200, experienced declines; however, European markets, including Germany's DAX and the U.K.'s FTSE 100, traded higher.
Investors are focusing on the release of economic reports on GDP and inflation as they evaluate the Federal Reserve's stance on interest rates and its efforts to cool down inflation. Metal prices have slipped due to concerns over global demand and the economy, and the risk of a government shutdown is also adding to the bearish sentiment. Earnings reports from various companies and core PCE inflation data are expected in the week ahead.
Asia-Pacific markets mostly decreased despite a rebound on Wall Street, with Japan's Nikkei 225 and Australia's S&P/ASX 200 experiencing losses, while the Kospi in South Korea and the Kosdaq in Hong Kong saw mixed results; in European luxury sectors, Bank of America upgraded three stocks that are deviating from negative trends; Moody's warns that a U.S. government shutdown would have a negative impact on credit; analysts have mixed opinions on the investment potential of tech giant Meta; Amazon's shares increased by 1.2% following its announcement of a major investment in AI startup Anthropic; the Federal Reserve suggests that interest rates may soon stabilize but at a higher level than expected; Chevron's CEO predicts that oil prices could reach $100 per barrel.
Stock futures inch down as Wall Street indices are expected to end September with losses, investors monitor budgetary stand-off in Washington, and Moody's warns of the negative impact of a potential government shutdown on the US rating; President Biden prepares to visit Michigan to support striking auto workers; Evergrande shares slip for the second consecutive day as the company's bond payment is missed; and oil prices decline on concerns over fuel demand amid central banks' commitment to combating inflation.
Stock indices closed in the red as the Nasdaq 100, S&P 500, and Dow Jones Industrial Average all experienced declines, while the utilities sector fell the most and the energy sector led despite still seeing a decrease; in addition, economic data including the Consumer Confidence report and US New Home Sales data reflected lower than expected figures, and stocks opened lower in Tuesday's trading session with the Case-Shiller Home Price Index suggesting continued rising demand for homes; JPMorgan CEO Jamie Dimon warned that a rise in interest rates to 7% could be painful for the global economy, and US Futures and WTI crude oil futures were trending down.
Summary: Global stock markets were mixed overnight, with Asian and European stocks showing a mixed to firmer trend. The Dow in the US opened higher but pared gains. In other news, US equities in September have seen declines and this month has been historically weak, while October historically performs better. The US core PCE prices in August showed a modest monthly increase of 0.1% and a decrease in the annual inflation rate, potentially impacting the Federal Reserve's rate hike decision. Eurozone's inflation rate dropped to 4.3% in September, suggesting a potential easing of interest rate hikes. Also, mortgage rates reached a nearly 23-year high, causing concerns for homebuyers and sellers and contributing to a decline in home sales. A potential government shutdown in the US looms as House Speaker Kevin McCarthy struggles to secure votes for a funding extension, raising concerns about economic consequences. Credit agencies are monitoring the situation and warning of negative impacts on the US credit rating. In Russia, President Putin met with a former commander of the Wagner group to discuss volunteer units in Ukraine, while Russia plans a surge in military spending amid the Ukraine conflict. In China, progress is being made in diplomatic exchanges between the US and China, paving the way for a potential Xi/Biden summit. The Biden administration's proposed oil lease sale plan is expected to be the smallest ever, reflecting concerns about climate change. USDA announced over $3 billion in funding for climate-smart practices in FY 2024, while a potential government shutdown may disrupt support for agricultural producers. Sen. Feinstein has died, temporarily reducing Democrats' majority in the Senate. Migrant crossings of the Darién Gap have surged to 400,000 in a year, and the Supreme Court will decide if state laws limiting social media platforms violate the Constitution.
Summary: The U.S. stock market had a bad quarter, with all indexes falling, while the World Bank lowered its growth forecast for developing economies in East Asia and the Pacific, and China's demand for commodities continues to grow despite the downgrade. Additionally, a last-minute spending bill was passed to avoid a government shutdown, and this week's focus will be on the labor market.
Stock markets ended mixed as investors processed the effects of the U.S. inflation report on the Federal Reserve's interest rate policy, with the S&P 500 declining by 0.27% and the Nasdaq Composite gaining 0.14%; in Asian markets, Japan's Nikkei 225 settled lower by 0.31% while Australia's S&P/ASX 200 slid 0.22%; in Europe, the STOXX 600 index was down 0.42% with Germany's DAX declining 0.25%, France's CAC 40 sliding 0.36%, and the U.K.'s FTSE 100 trading lower by 0.45%; and in commodities, Crude Oil WTI and Brent gained 0.82% and 0.89% respectively, while Gold traded lower by 0.88%.
The major stock indexes are expected to open lower as the 10-year Treasury yield hits a 16-year high, with investors monitoring employment data for potential impact on interest rates; meanwhile, stock futures in Asia and Europe slumped as the Federal Reserve's message of higher interest rates reverberates worldwide.
Stock indices finished in positive territory, with the Nasdaq 100, S&P 500, and Dow Jones Industrial Average all posting gains, while the energy sector experienced losses; meanwhile, the U.S. 10-Year Treasury yield decreased and the Two-Year Treasury yield also saw a decline. The Factory Orders report showed an increase in new purchase orders placed with manufacturers, beating expectations. The ISM Non-Manufacturing Purchasing Managers' Index indicated a slight contraction in the non-manufacturing sector, and the ADP jobs growth data showed a slowdown in job growth and wages. U.S. Futures opened lower following higher-than-anticipated JOLTs jobs opening data. Asian markets ended mixed, while European indices traded in the red.
Investors in the week ahead will focus on the release of the Consumer Price Index (CPI) for September, third quarter earnings reports from companies like Pepsi, Delta, and JPMorgan, and insights from the Federal Reserve's September meeting minutes.
Both the consumer and producer prices indices are set to be released this week, providing investors with another look at US inflation data, with expectations of a gradual decrease in inflation as crude oil and gasoline prices drop. Additionally, the impact of weight loss drugs on grocery sales is being monitored, with companies like Walmart and Coca-Cola experiencing fluctuations in stock prices.
