-
Fed leaves rates unchanged
-
Wall Street moves higher
-
Boeing lowers 787 production rate
-
Trump threatens Big Tech
-
Pending home sales above expectations
-
Gold and silver resume advance
The FOMC decision was the main event of the day. The US central bank left rates unchanged and decided to extend currency swap lines until the end of Q1 2021. Fed said that the virus remains a considerable short-term risk for the economy and that it stays committed to using all of its tools if needed. Overally, neither decision, nor press conference turned out to be a market moving event as Powell stuck to the previous narrative.
Apart from the FOMC decision there weren't any market moving releases scheduled for today. US pending home sales data for June came in slightly above expectations.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appUS oil inventories data showed a massive decline in crude stockpiles. However, oil prices failed to catch a bid in the aftermath of release as other components of the DOE report were not too optimistic. Nevertheless, crude trades higher on the day. Gold and silver benefited from Fed staying put and regained some of recent losses. Industrial metals are also gaining today.
European stock market indices finished today's session mostly lower. Stocks traded sideways for the major part of the session as investors awaited the FOMC decision. Spanish equities were laggards while stocks in Russia outperformed. US indices launched the session with minor bullish price gaps. Tech stocks experienced a pullback after Donald Trump threatened to target Big Tech with Executive orders should Congress fail to "bring fairness". Nevertheless, pullback was just temporary and indices moved to new session highs during Powell's press conference.
Boeing reported a massive loss and lower than expected revenue. Apart from that, the US planemaker decided to further reduce the production rate of 787 jets and terminate the buyback programme.
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.
