Market Overview - Page 101

The statistics released from China today raise concerns about the economy’s near-term prospects, preventing the USDCNH from bucking the uptrend. July data showed a slowdown in retail sales growth from 3.1% y/y to 2.7%, in stark contrast to the average.

The US stock market recorded the third week of gains, allowing the Nasdaq100 to add 2.1% and overcoming several meaningful resistances, potentially clearing the way for a further leg up. At the same time, local technical overbought conditions have accumulated..

WTI crude has gained more than 6.5% this week, and this strengthening has a pinch of irony. Stock indices managed to surpass the highs of the previous week’s pullback and the weak inflation report’s main driver of increased risk appetite..

The UK monthly statistics package showed that the economy lost 0.1% in the second quarter (0.2% expected), and the annual growth rate collapsed from 8.7% to 2.9% (2.8% expected). For the month, the decline was 0.6%, half the forecasts. A.

US producer prices fell by 0.5% in July, the first decline after 26 months of growth. The year-over-year PPI rate returned to the single-digit territory at 9.8% against a peak of 11.7% in March and 11.3% a month ago. Producer.

The US inflation data published on Wednesday triggered a strong and unequivocal reaction from financial markets, allowing more certainty about starting a new market cycle. Yesterday’s report showed close to zero price growth for July, while annual CPI growth slowed.

US consumer inflation slowed to 8.5% in July from 9.1% a month earlier. As we had pointed out, the fact was noticeably lower than the forecasted 8.7%, and this caused an immediate market reaction. FedWatch Tool showed the market’s estimate.

It is definitely inflation day today. China, Germany, and Italy have released their consumer inflation data, while the US will release theirs before the New York session begins. Historically, inflation data has rarely deviated from expectations without triggering a market.

Australia’s Westpac Consumer Confidence Index lost 3% in August, developing a nine-month slump that took off 22.9%. The index was near current levels twice in 2020 during the worst periods of lockdowns and uncertainty and even earlier in 2008 during.

The precious metals are recapturing critical levels one after another, claiming a reversal to the upside after a two-year bearish trend. Silver made quite a move up on Monday, gaining over 4%. Palladium closed the day up 5.3%, and at.

Today is a quiet day regarding data from Europe and the USA, allowing a look at data from Asia. Statistics from Japan indicate that the worst for the Rising Sun country may be over, and the weakness in the yen.

Markets were confused by Friday’s US labour market data, not knowing how to react to solid job growth. This is a negative for equities, as it makes us expect a third consecutive 75-point Fed rate hike at the next meeting.