-
Wall Street indices closed lower yesterday, with the S&P 500 shedding 0.50% and the Nasdaq down 0.5%. The retreat was driven by strong US economic data and subsequent hawkish commentary from central bankers, which collectively diminished the probability of Fed rate cuts.
-
Strong US data included an upward revision to Q2 GDP growth, which ultimately printed at 3.8% (up from a preliminary 3.3%). This was complemented by low initial jobless claims and solid figures for durable goods orders.
-
Gold displayed considerable resilience against the dollar's strengthening and reduced rate-cut expectations, managing a 0.3% gain during the session.
-
EUR/USD slipped below the pivotal 1.17 level, likely marking its first weekly decline after three consecutive weeks of gains.
-
President Trump announced a 100% tariff on branded and patented medicines, causing a sharp sell-off in pharmaceutical companies and raising global health sector concerns. Trump also escalated tariffs on trucks and furniture.
-
Market uncertainty is exacerbated by the return of trade tensions, the looming risk of a US government shutdown (Congress has until September 30 to pass a budget), the start of earnings season, and ambiguity regarding the Fed's future path.
-
The White House has instructed government agencies to prepare for furloughs amid the high probability of a government work stoppage.
-
Conflicting Fed views: Stephen Miran advocates for faster rate cuts; Michelle Bowman supports further reductions due to a weakening labour market; while Austan Goolsbee warns against tariff-induced inflation and does not support a series of rapid cuts.
-
Crude oil gained during the session, driven by continued uncertainty over potential sanctions on Russia and domestic Russian fuel market restrictions. After initial dips, WTI crude rose above $65 per barrel, though a slight retreat is observed today.
-
Attention today turns to the release of key US labour market data set for 14:30 CET.
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
