Daily summary: US stocks edge higher after Fed notes progress on the economy

8:41 PM July 28, 2021
  • Fed leaves rates and QE pace unchanged, signals progress on tapering goal
  • US crude stocks fall more than expected
  • Earnings from Facebook (FB.US) after market close

 European indices finished today's session mostly higher, partially erasing this week’s losses amid upbeat earnings results from several companies, including Deutsche Bank, Barclays, and Santander. British American Tobacco posted strong revenue figures for the first half of the year, and Rio Tinto recorded record first-half profit. On the data front, consumer sentiment reports from France and Germany both missed market consensus. DAX 30 rose 0.33%, CAC 40 added 1.19% and FTSE 100 finished 0.29% higher

Mixed moods prevail on Wall Street as investors digest earnings from big tech companies and Fed's monetary policy decision. Microsoft, Alphabet and Apple posted better-than expected quarterly results  although shares from the iPhone maker were in the red on growth concerns. Solid results from both McDonalds and Starbucks failed to ease concerns that both companies will suffer if the U.S. is forced to close physical outlets again due to the spread of Covid-19. Meanwhile, Pfizer quarterly results posted solid quarterly earnings and the company lifted its 2021 sales forecast for the covid-19 vaccine to $33.5 billion from $26 billion. Boeing also posted profit for the 1st time in 6 quarters. Ford and Facebook will publish their quarterly figures after market close. The Federal Reserve left its benchmark interest rate and bond-buying programme unchanged as widely expected. Officials stressed that indicators of economic activity and employment have continued to strengthen and that sectors most adversely affected by the pandemic have shown improvement but have not fully recovered and risks to the economic outlook remain. Regarding tapering, the central bank offered some hints that asset purchases could start being reduced soon. Officials said the economy has made progress toward employment and inflation goals, and that the Committee will continue to assess progress in coming meetings.

WTI crude rose more than 1.1% and is trading slightly above $72.40 a barrel, while Brent is trading 0.60% higher around $75.00 a barrel as the EIA Petroleum Status Report showed US crude oil inventories dropped by 4.089 million barrels in the July 23rd week, above analysts' estimates of a 2.928 million drop. Elsewhere gold rose 0.18% and is trading slightly above $ 1,801.00 / oz, while silver is trading 0.80 % higher, around $ 24.90 / oz.

NZDUSD pair failed to break above the upward trendline and extended yesterday's losses. Currently price is approaching major support at 0.6910 which is marked with the lower limit of the 1:1 structure. Should break lower occur, then downward move may accelerate towards next support at 0.6773. Source: xStation5


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