Morning wrap: Nasdaq 100 Back Above 30,000 Points 📈 Gold And Silver Pare Gains

Against the backdrop of a mixed session in Asia, where Hong Kong’s Hang Seng fell nearly 1% while South Korea’s KOSPI and Japan’s Nikkei advanced, equity investors are taking some profits following the strong gains of recent days. Sentiment across global markets is being supported by gains on Wall Street, slightly lower oil prices and a softer-than-expected US Producer Price Index (PPI) reading. Technology stocks performed particularly well in Asia, including Japanese and South Korean semiconductor companies.

• Nasdaq 100 futures are edging lower, down just under 0.2%, although the index finally closed above 30,000 points for the first time since mid-July. Meanwhile, the S&P 500 reached a new all-time high, climbing above 7,800 points. Futures on major European indices, including the Euro Stoxx 50 (EU50) and DAX (DE40), are trading broadly flat ahead of a relatively busy calendar of key macroeconomic releases.
• Today, investors will focus primarily on the preliminary estimate of eurozone GDP for Q2 (10 AM GMT, with the market expecting growth of 1% YoY and 0.4% QoQ), US retail sales for July (1:30 PM GMT, with Wall Street expecting a 0.1% MoM increase following 0.2% in June), as well as the University of Michigan’s preliminary US consumer sentiment and inflation expectations for August (3 PM GMT).
• Precious metals are trading lower, with silver down around 1% and gold falling 0.7% toward $4,300, compared with around $4,440 yesterday. The US dollar is weakening, while EURUSD is testing the 1.154 area. Oil prices remain broadly stable, with Brent crude (OIL) trading near $87 per barrel. Investors are balancing the risk of further escalation around Iran against concerns about weakening global demand. The US has announced unprecedented economic measures against Tehran, while the Pentagon has indicated that a naval blockade of Iranian ports could be maintained indefinitely.
• The U.S. is preparing to deploy the USS George Washington aircraft carrier to the Middle East, where it will replace the USS Abraham Lincoln as part of a previously scheduled rotation. The Lincoln has been deployed for more than 250 days, including a record 200 days without a port call, prompting concerns in Congress over supply shortages, crew fatigue and technical issues.
• NATO fighter jets shot down a drone over Latvia after it violated the country’s airspace on Friday morning. Finland also took precautionary measures, temporarily restricting air and maritime traffic in parts of the Gulf of Finland due to the risk of drone activity.
• Wheat futures are up more than 1% amid concerns over declining grain shipments from Ukraine and Russia through the Black Sea. Ukraine has reportedly proposed a mutual agreement with Russia to halt attacks on civilian vessels in the Black Sea, which could help restore a key grain export route. According to Reuters, the proposal was delivered through a third party, but Russia has yet to respond.
• S&P Dow Jones Indices announced that Reddit will replace AvalonBay Communities in the S&P 500. The change will take effect before the market opens on Tuesday, August 18, while Reddit shares jumped more than 12% in after-hours trading yesterday.
• JPMorgan downgraded Honeywell and lowered its price target to $252 from $262, while Jefferies raised its price target for Heico to $425 per share from $410. A move toward $425 would imply roughly 15% upside from current levels.
• South Korea’s ICT exports, including semiconductors, electronics and telecommunications equipment, surged 140% year over year in July. The strong growth was driven primarily by sustained demand for chips used in AI applications.
• Detroit automakers warn that proposed changes to the North American trade agreement could increase annual costs for each manufacturer by at least $2 billion. Washington wants vehicles to contain at least 50% U.S.-made content to qualify for lower tariffs. General Motors (GM.US) estimates this year’s tariff costs at between $2.5 billion and $3.5 billion, while Ford (F.US) expects an impact of around $1 billion.
• Apple is investing hundreds of millions of dollars in a new advanced manufacturing facility in Houston, which has already shipped its first AI servers. The facility is also expected to begin producing Mac mini computers later this year.
• Fires have once again been reported at Russia’s Ust-Luga port. North Korea has warned that it could use “new methods of deterrence” ahead of upcoming joint military exercises between South Korea and the United States

US100 chart (D1 interval)

Source: xStation5