- The S&P 500 closed yesterday session one step closer to the historic all-time high 5,500 level as AI-driven Nvidia surged 3.5% becoming the most valuable company on the Wall Street, surpassing Microsoft. Today we can see futures on US indices slightly higher but both EU and Germany stock futures are losing in 0.15% - 0.2% range
- Stocks of US technology firms Qualcomm and Dell also gained yesterday and in general better sentiments among technology companies related to AI drive rally on US market while the rest of stocks is not so strong. DJIA ended yesterday session with 0.15% gain.
- China's Hang Seng Index ended today's session almost 2% higher, with the announcement of financial market reforms at a forum in Lujiazui supporting sentiment and updated regulations will take effect. Also, China's regulator CSRC announced increased regulation of short selling in the Chinese market and said it would severely punish any irregularities.
- Although recent data from China's economy came out mixed (higher industrial production, weaker retail sales) investors see hope in improving market standards, fostering interest in the Chinese stock market. Investors are also waiting for more political support from Chinese officials scheduled to meet in July.
- Korean KOSPI rallied by 1%supported by higher prices of US tech stocks while Japanese stocks were mostly flat. Japanese export in May came in 13.5% YoY growth vs 13% expected and 8.3% previously. Import growth came in 9.4% YoY vs 10.4% expected and 8.3% previously (April) reading
- Fed members commented US economy yesterday and are still quite optimistic about this year falling inflation trend, but want to wait for more data - to be sure about what's economy is doing. Goolsbee is optimistic about the US economy in the long run and Collins sees chances for both scenarios: one and two cuts this year, but last data points that the US economy is coming into better balance.Fed's Musalem sees that 'artificial intelligence, if adopted widely, will have material productivity impacts over the long term' and does not see any deterioration in the labour market while Federal Reserve sees clearly lingering supply chain issues.
- Congressional Budget Office forecasts 2024-2034 average US real GDP growth at 1.8% vs 2.0% in February and Q4/!4 dynamic at 2.0% vs 1.5% in February. Next year, the research agency expects US real GDP growing at 2% pace, vs 2.2% in February forecast.
- CBO expects US fiscal 2024 federal deficit touching $1.915 trillion, (up $408 bln from the February estimates).because of student loans negative impact, new FDIC bank resolutions, Ukraine-Israel aid bill and Medicaid solutions
- OIL didn't react strongly to API estimates, but is traded near the highest levels since 1 May 2024, above $85 per barrel. US API gasoline change came in -1.077M vs -2.549M previously, while Crude Oil inventories change came in 2.264M barrels vs -2.428M previously. NATGAS rallied from $2.83 since the last rollover to almost $3 per MMBtu amid spreading heat in the United States
- Chinese EV producer BYD didn't react with decline to Warren Buffett's Berkshire Hathaway decision of selling stock. Tesla cars registrations in Chine are down 9% in Q2.
- Bitcoin is traded slightly above $65.500 and some altcoins reacted with rebound as Ethereum price came again above important resistance zone at $3500. We can see double-digit gains of Graph and Kyber
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.
