- Wall Street ended yesterday's session in positive sentiment. The Nasdaq gained 2.64% intraday, the S&P500 added 1.58% and the Russell 2000 gained 0.51%. The rally was fueled by technology companies, particularly Nvidia shares, where we saw more than 13% gains intraday.
- Optimism was further increased after the close of US trading, when very strong financial results were reported by companies such as Meta Platforms, Qualcomm, eBay and Arm Holdings.
- Meta Platforms reported strong financial results for the second quarter of 2024, beating analysts' expectations in both revenue and earnings per share (EPS). Mark Zuckerberg said Meta AI is on track to become the world's most popular AI assistant by the end of 2024.
- The Fed kept interest rates unchanged and is not clearly pointing to a rate cut in September, stressing that more signs of inflation falling to target are needed
- Powell, however, was decidedly more dovish during the conference and announced the possibility of a cut in September if data warranted it
- China's Caixin Manufacturing PMI reading for July 2024 came in at 49.8 (51.5 was expected, 51.8 previously)
- Japan: July Manufacturing PMI (final): 49.1 (previously 50.0)
- USD/JPY and the yen cross rates saw another day of wide fluctuations following Wednesday's Bank of Japan decision to raise interest rates and signals from the U.S. Federal Reserve that a rate cut is imminent.
- From a level above 150 in the morning, the USD/JPY pair fell to around 148.50, before recovering to around 149.80 at the time of writing this commentary.The USD/JPY pair is now down to around 148.50.
- Crude oil continues its strong gains, linked to the geopolitical situation. Ismail Haniyeh, head of Hamas' political wing and a key negotiator in ceasefire talks with Israel, was killed in Tehran, Iran, while attending the inauguration of Iran's new president. A few hours earlier, Fuad Shukr, Hezbollah's second-in-command, was targeted by a rocket attack in Beirut, Lebanon. Although no one claimed responsibility for the attacks, the identities of senior commanders of Iranian allies-caused the blame to be quickly placed on Israel. In response, Iran's leader was said to have ordered “direct” retaliation against Israel.
- Gold remains in the zone of historical highs and is trading in the zone of $2445 per ounce.
- In the cryptocurrency market, we observe a further retreat of Bitcoin prices below $64 200.
Heatmap of volatility observed in the FX market at the moment. Source: xStation 5
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appThe 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.
