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Indices in the USA end the day around their opening levels. After a slight gains at the start of the session, the gains were then partially given back. The US500 is trading unchanged at 5250 points and the US100 gains 0.05% to 18230 points.
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The gains are being held back today by relatively hawkish comments from FOMC officials. The dollar and US bond yields are also gaining.
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One of the stronger currencies today is the GBP, which is gaining 0.10% against the equally strong USD. The GBP gains are supported by strong data from the UK economy released this morning. The Antipodean Currencies, on the other hand, are performing poorly.
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There were speeches from the FOMC today, including Bowman, Kashkari, Goolsbee and Logan. The tone of the speeches is hawkish, reflecting the Fed's precautionary stance. Interestingly, the bankers focused mainly on inflation data, and the topic of weaker labour market data in recent weeks was not addressed.
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An equally strong currency today is the Canadian dollar (CAD), which is gaining after exceptionally strong Canadian labour market data. Following the release of the report, expectations of a rate cut by the BoC in June fell from 65% to 47%.
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The report from the University of Michigan performed poorly. The consumer confidence index fell to 67.4 points (Expectations: 76.1. Previously: 77.2). In contrast, inflation expectations rose:
- Expected inflation in 1 year. Currently: 3,5%. Expectations: 3,2%. Previously: 3,2%
- Expected inflation over 5 years. Currently: 3,1%. Expectations: 3,0%. Previously: 3,0%
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In Poland, investors were focused on the massive gains in CCC shares and the press conference of Chairman Glapinski of the MPC, who communicated that at this point the Council is not convinced that rate cuts will be justified this year, and that such decisions will have to wait until early 2025.
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Novavax (NVAX.US) gains more than 100 per cent after the announcement of Sanofi's acquisition of a 4.9 per cent stake in the US drugmaker. The share acquisition values Novavax at around $1.4 billion, almost double its market capitalisation of around $628 million yesterday.
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There is also a lot going on in the commodity markets today. Precious metals are gaining dynamically, we are talking in particular about gold (+1%) and platinum (+1.4%). In energy commodities, we are seeing a nearly 2% retracement of Natgas and a 1.5% retracement of WTI crude oil. The lead in the agricultural market today is led by soybean oil (+4.8%) and wheat (+3.3%).
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Bitcoin is once again falling around the support zone at the USD 60000-61000 level. Sentiment on cryptocurrencies has not been the best in recent weeks. Even the rebound on the indices has not resulted in a sustained price rise. For the bulls, the key level to be defended will be USD 60000, followed by USD 57000.
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