• Wall Street showed signs of mild uncertainty today. Although major indices remain near record highs, trading was cautious as investors await details on potential tariff changes between the U.S. and the EU. The U.S. Dollar Index (USDIDX) gained nearly 0.25%, while EURUSD dipped slightly by 0.11%, trading just below 1,170.
• Positive sentiments on Wall Street and weaker dollar boosted demand for cryptocurrencies. The US Bitcoin ETFs, especially BlackRock's IBIT recorded more than $1B net inflows yesterday, lifting BTC prices higher. Crypto market sentiment remained upbeat. Altcoins, including Ethereum and Cardano, are also recording solid gains.
• Aside from gains in Nvidia, Amazon, and Alphabet—supporting sentiment on the Nasdaq 100—shares of Levi Strauss on Wall Street also climbed following strong quarterly earnings. The Q2 report highlighted robust growth in both direct-to-consumer (DTC) and organic sales.
• Drone manufacturers, including AeroVironment and Kratos Defense, saw strong gains as momentum was driven by a revised U.S. Department of Defense strategy focusing on unmanned systems.
• The Canadian dollar rallied sharply against the U.S. dollar after stronger-than-expected labor data increased the likelihood of a hawkish stance from the Bank of Canada. Interest rate swap markets now price in only an 18% chance of a rate cut this month, down from 27% prior to the jobs report.
• Oil prices surged more than 2% after the European Commission proposed lowering the Russian oil price cap from the current $60 to around $50 per barrel, as part of the 18th EU sanctions package. Discussions on the final structure are ongoing, and speculation is also rising over possible energy sanctions from Donald Trump.
• Precious metals had a strong day, benefiting from ongoing tariff uncertainty. Silver jumped nearly 4%, while gold gained almost 1%.
• The USDA WASDE report did not trigger elevated volatility in agricultural commodities. Soybean and cotton ending stocks came in slightly above expectations. Wheat futures (WHEAT) continued to decline despite USDA showing slightly lower ending stocks at 890 million bushels (vs. 896.5M expected and 898M previously). Wheat prices fell nearly 2% on the day, accelerating from a 0.7% drop before the report.