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Global financial markets were in risk-off moods today amid disappointing Chinese trade data, Italian windfall tax and Moody's downgrade of US banks
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Chinese exports dropped 14.5% YoY in July (exp. -12.5% YoY) while imports were 12.4% YoY lower (exp. -5% YoY)
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Italian FTSE MIB slumped 2.2% after Italian Senate approve 40% windfall tax on banks
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Moody's downgraded 10 small- and mid-sized US banks and put 11 on negative outlook. Moreover, some large institutions like US Bancorp of Bank of New York Mellon were put under review for potential downgrade
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Wall Street indices trade lower but off the daily lows. S&P 500 and Dow Jones drop 0.8% while Nasdaq and Russell 2000 drop 1.1%
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European stock market indices traded lower today as well. German DAX dropped 1.1%, UK FTSE 100 moved 0.36% lower, French CAC40 dropped 0.69% and Dutch AEX finished 0.66% down
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Fed Harker said that the US central bank will need to hold rates steady for a while. Harker said he expects core PCE to decline to just below 4% by the end of this year and to reach 2% target in 2025
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Fed Harkin said that unless there are major surprises in data by mid-September, Fed may be able to stay patient and keep rates unchanged. Harker also said that rate cuts will likely start sometime next year
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Fed Barkin said that inflation remains too high but the labor market is 'remarkably resilient'
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Saudi Arabia said that it will continue to support OPEC+ precautionary efforts to ensure stability in oil markets
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US trade balance for June came in at -$65.5 billion (exp. -$65.1 billion)
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Canadian trade balance for June came in at -C$3.73 billion (exp. -C$2.8 billion)
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US wholesale inventories dropped 0.5% MoM in June (exp. -0.3% MoM). Wholesale sales were 0.7% MoM lower (exp. -0.2% MoM)
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Japanese household spending dropped 4.2% YoY in June (exp. -4.2% YoY)
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Oil has been trading lower today and was down 3% at one point, after the release of disappointing trade data from China. However, situation began to change in the afternoon and declines were almost completely erased
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Precious metals trade lower pressured by stronger USD - silver dropped 1.6% while platinum and palladium plunged over 2%. Gold dropped 'only' 0.6%
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Industrial metals traded lower with nickel, zinc, aluminum and copper dropping over 1% today
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Cryptocurrencies bucked the 'risk-off' trend and traded higher today. Bitcoin gained 2.2%, Ethereum jumped 1.6% and Dogecoin rallied 2.5%
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USD, GBP and CHF are the best performing G10 currencies while NZD and AUD lag the most
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