- Major stock indexes from Europe ended the session higher. The DAX gained 0.91%, the FTSE100 added 0.42% and the CAC40 closed at +1.52%.
- The DAX failed to break through 16,000 points on a sustained basis and closed the session at 15,996 points. If the weaker sentiment in the US persists tomorrow morning, an ascent above 16,000 points seems unlikely
- The the strongest index in Asia was Japanese Nikkei, JAP225 futures contracts surged 2% today;
- The key macro readings of the day inflation data and unemployment claims from the US, encouraged the Wall Street bulls in the first reaction;
- U.S. CPI came in at 3.2% y/y vs. 3.3% estimates and 3% previously, with a 0.2% m/m decline retained, in line with expectations;
- Initial jobless claims in US came in at 248,000 vs. 230,000 forecast and 228,000 previously but continued claims unexpectedly fell down;
- Mary Daly, chair of the San Francisco Fed indicated that the Federal Reserve wants to see a decline in inflation across all measures, and that inflation in services excluding housing and energy is still too high;
- Wall Street reduced the vast majority of gains. The Nasdaq limited gains to 0.3%, the S&P500 index gained 0.15% and the Dow Jones gained 0.25%
- Nvidia shares are performing poorly again, and despite a rebound at the beginning of the session, have resumed their downward trend putting pressure on AI companies.
- Disney gains nearly 5% despite mixed Q2 results; revenue failed to beat forecasts; earnings per share (EPS) rose - but turned lower on a y/y basis. Buls believe in successful completion of the giant's business restructuring;
- Supported by Mary Daly's comments, the U.S. dollar extended a rally, USDIDX strengthened from 101.5 to 102.4 points today. Bulls on EURUSD struggle to stay above 1.10
- Natural gas reduced gains by nearly 8%. The EIA report indicated a larger-than-forecast inventories increase in the U.S. (29 billion bcf vs. 23 billion bcf expected and 14 billion bcf previously)
- Oil contracts lose in the range of 1 to 1.5% for Brent and WTI, respectively
- Gold gains slightly 0.15% vs. 0.43% rally in silver contracts - precious metals sentiment remains mixed;
- Cryptocurrency market sentiment remains mostly weak. Bitcoin failed to sustain gains near $30,000 and is trading back at $29,300 level.
Sentiments on GOLD are still negative and in case of further decline even 1900 USD level can be retested by bears. Source: xStation5
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