- The last trading session of the week saw rallies in European stock market benchmarks. Germany's DAX booked nearly 0.4% gains today and remained in areas close to historic highs.
- The mood on Wall Street is much more mixed. The technology NASDAQ is currently trading down 0.16%, the Russell 2000 is losing more than 0.91%, and the S&P 500 index is gaining just over 0.08%. Investors' attention today was mainly captured by reports around Adobe (great results and raised forecasts), Micron (performance warning in the face of a ban on the company's products in China) and Virgin Galactic (giving a date for the start of commercial space tourism services).
- Data from the University of Michigan indicated that annual inflation expectations are now at their lowest since 2021 - expectations for long-term inflation have also fallen. At the same time, current sentiment and consumer expectations fared positively;
- UoM data: 1 year inflation expectations came in 3,3% (previosly 4,2%) and current consumers sentiment came in 63,9 (previosly 59,2 and 60,2 exp.). Expectations index was much higher than expected and came in 61,3 vs 56,5 awaited by Wall Street and 53,4 previosly. Also long term inflation expectation eased to 3% from 3,1% previosly - bullish data didn't help US indices to rally;
- Waller and Barkin of the U.S. Fed have communicated that the Fed should continue the cycle of interest rate hikes until demand in the economy grows. Such an aggressive approach by Fed members may foreshadow that a recession in the US will be extremely difficult to avoid in the long term. In the wake of these comments, the EURUSD pair is seeing moderate declines.
- The best performing currencies in the FX market at the moment are the British pound and the Canadian dollar. The worst performing is the Japanese yen.
- The International Monetary Fund estimates that global economic growth will be 'below trend' in the coming quarters, and central banks' policies will require further tightening
- The Fed report indicated that the interest rate hike campaign needs to be cautious although the outlook for the final interest rate is subject to considerable uncertainty, core services price inflation (excluding the real estate market) shows no signs of cooling off
- Energy commodities are trading slightly higher. Oil is gaining in the range of 1%, while NATGAS is trading at nearly 3% plus
- Gold is trading marginally higher at $1,960 per ounce. Silver is gaining 0.9% with the price at $24.1. Palladium is the best performer, trading up nearly 2%
- Wheat is the best-performing agricultural commodity today, with uncertainty over the July grain deal in the context of the Ukrainian counteroffensive and the consequences of the Novaya Kahovka dam breach, as well as concerns around the drought driving commodity prices.
- This week's final session also brings an improvement in sentiment in the energy commodities market. WTI crude oil gains nearly 1.4%, while NATGAS adds more than 3%.
- Rising above $26,000, the price of Bitcoin at the end of the week gives hope to the cryptocurrency market. Investors welcomed CoinDesk's reports of BlackRock's planned creation of a Bitcoin ETF fund
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
