- U.S. indices are trading down in the second part of the session after breaking out of historic highs. The S&P 500 is losing almost 0.3% today after breaking through the 5,500 point level shortly after the opening. The Nasdaq 100 loses 0.8% after approaching the level of 19,980 points.
- The U.S. stock market is being dragged down by AI-related technology companies today, particularly semiconductor manufacturers, which are trading down sharply after a strong start to the session. Nvidia is losing almost 4% today, TSMC is down 3%, and Oracle is losing 1.6%. We can see the reasons for this decline in profit taking; TSMC shares were not helped by the positive recommendation issued by Bernstein
- Jobless claims in the US today came in slightly above forecasts, at 238,000 versus 235,000 forecast. However, they turned out to be lower than the recently reported 242k. Unexpectedly, however, continued jobless claims rose to 1828k from 1820k previously. The market had expected a drop to 1810k.
- The US real estate market surprised negatively in May. The number of house construction starts last month fell by -5.5% m/m against a forecasted increase of 0.7%. Building permits also declined, falling -3.8% from April (against a forecast of 0.7% growth).
- The Philadelphia Fed Manufacturing Index for June was also a strong disappointment. The reading indicated a value of 1.3 against a forecast of 4.8.
- Dell declines despite jumping more than 8% at the market's opening. Declines in other technology companies dragged its stock price down. Dell's strong opening was due to the news published by Elon Musk about the company's partnership with his start-up xAI.
- Accenture is up more than 7% today after the publication of better-than-expected Q3 orders, boosted by generative artificial intelligence.
- European indices continue their positive streak after last week's discounts. The DAX gained more than 1% today, and the CAC40 was up 1.3%. The British FTSE 100 ended today's session 0.8% higher.
- The Swiss National Bank (SNB) decided to cut the interest rate to 1.25%. This makes it the second reduction by the Swiss bank, which was the first on the Old Continent to decide on such a move in March this year.
- The Bank of England (BoE), as expected, left the interest rate unchanged. Bankers from the UK stress that the decision to leave the interest rate at such a level is in line with current data coming out of the market. BoE bankers stretched inflationary risk in the second half of the year from services and min. wage growth. Bank raised UK GDP Q3 forecasts to 0.5% vs 0.2% before
- The drop in crude oil inventories according to the EIA turned out to be slightly smaller than forecasts and still very high, signalling considerable demand (-2.5 million barrels vs. -2.8 million forecasts). Gasoline stocks fell surprisingly sharply by more than 2.2 million barrels, although the market expected a 1 million increase. WTI crude oil is trading up today to $81.5 per barrel
- Natural gas prices are down nearly 5% today amid forecasts of cooler weather in the US, expected by NOAA in late June. Colder weather could lower gas demand resulting from air conditioning use
- Chicago wheat futures are trading down after the latest rollover due to the advanced stage of the U.S. harvest and increased production by Russia (IKAR) and Argentina
- Sentiment on precious metals is very positive today. Silver has risen above $30 per ounce and is trading up 4%. Gold is trading 1.2% higher at $235 per ounce. Gold's strengthening is not hindered by a near 0.4% rise in the dollar index; contracts on USDIDX are having a great session today, rising to 105.25
- The Fed's Kashkari indicated that it will likely take a year or two for inflation to return to the Fed's 2% target. In his assessment, the fundamentals of the U.S. economy remain strong, although some weakness is beginning to be seen in some sectors of the market
- The mood of the cryptocurrency market remains mixed, with Bitcoin's price falling below $65,000 again today. Recent data suggests the lowest interest in Bitcoin among hedge funds in nearly 4 years
- Russian President Vladimir Putin, during a visit to North Korea, conveyed that Russia is considering some changes to its nuclear doctrine and is feeling pressure from NATO, in Asia
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