Market Overview - Page 17

Market Picture Market capitalisation has risen 0.5% in the last 24 hours to $3.44 trillion, but that’s below Tuesday’s intraday peaks of $3.49 trillion and last Friday’s highs of $3.54 trillion. This is an interesting development given the risk appetite.

Preliminary data shows a smaller drop in US durable goods orders than expected, mainly due to the transport sector. Concerns arise over potential stagnation or contraction in the economy.

Japan's high debt burden may lead to a reversal in monetary policy to support the bond market and exports. The USDJPY pair is seen to have retreated from long-term support at 140, with the potential to rise to 160 or higher.

The EU tariff shift led to a bounce in the S&P500 off its 200-day MA after US President delayed imposing tariffs, pushing the index towards potential historical highs.

US drilling activity declines due to low oil prices, with rig count dropping to its lowest level in late 2021. Meanwhile, OPEC plans to increase production, affecting oil prices negatively.

It’s been a wild week in the markets. U.S. stocks are sliding, the dollar’s under pressure, and Bitcoin just hit a new record. What’s behind the chaos?

The US dollar faces increasing risks due to trade wars, credit rating downgrade, fiscal problems, and tariffs threats, leading to a decline in confidence and value.

Strong retail sector data and accelerating consumer inflation in Britain limit room for Bank of England rate cuts. This news boosts the pound, hitting 39-month highs, supported by strong retail sales figures exceeding expectations.

EURUSD is seeing a tactical retreat towards 1.13 after a rapid rise. The 1.12-1.15 area is a key pivot, with a longer-term uptrend targeting 1.20-1.25.

Eurozone PMI data showed a contraction in business activity, with services sector weakening while manufacturing improved. The strengthening euro did not hinder manufacturers.

UK inflation surged unexpectedly, raising concerns about a potential Bank of England rate cut. The rise was driven by increases in housing, household services, and leisure, challenging monetary policy.

Germany's DAX40 and UK's FTSE100 outperform S&P500, showing strength against economists' pessimism. Stimulus measures from Europe and China boost equities, with potential for positive impacts globally.