Market Overview - Page 23

US PPI and core inflation jumped, shaking markets and reducing the chances of aggressive Fed rate cuts. Confidence in multiple cuts fell as focus shifted to Powell’s upcoming Jackson Hole speech

UK data shows positive economic growth in June, mostly surpassing expectations. Pound faces resistance despite strong fundamentals, showing signs of exhaustion following recent growth.

The US small-cap index Russell 2000 surged by almost 8%, outperforming S&P 500 and Nasdaq100, driven by expectations of a Fed rate cuts.

The stock market indices are reaching new highs driven by expectations of multiple interest rate cuts. Nasdaq100 targets 30,000, S&P 500 7800, while Nikkei225 aims for 50,000.

US markets disregarded the rise in core inflation, increasing confidence in a September Fed rate cut to 90%. However, caution is advised due to potential inflationary risks from tariffs.

The Reserve Bank of Australia cut rates to 3.60%, citing inflation in line with expectations. This easing led stocks to all-time highs and the Australian Dollar lower.

US consumer inflation data for July will be key in determining a potential rate cut in September.

Oil prices rebounded by 1.3% to $63.5 per barrel of WTI following a recent 11% decline due to weak US labour market data and increased OPEC+ quotas, reflecting market focus on negative news.

China's falling PPI have contributed to a prolonged period of deflation, prompting potential stimulus measures. Factors include subdued economic growth, low consumer inflation, reduced demand from US tariffs, and global economic slowdown.

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Key events for the week include the release of US CPI and US negotiations with Russia. Also, be aware of RBA meeting, UK Jobs and GDP stats.

The dollar initially rose but weakened due to labour market data, increasing Fed rate cut expectations. Political appointments and technical indicators signal potential further dollar weakness.