Economic Indicators & Central Banks:
- JGB yields slipped, as markets paused amid a recent bond sell-off, awaiting a crucial US inflation report expected to influence the Fed’s short-term interest rate decisions. Remember, that typically yields move inversely to bond prices.
- US: Stronger than expected prints on PPI did not have the textbook effects on the markets. Interestingly, Treasuries and Wall Street rallied, while the US Dollar slipped. The guts of the report were not as worrisome as the headlines suggested, and the CPI is viewed as more important.
- Global equities are set for a fresh record after a big tech-led rally in US gauges.
Financial Markets Performance:
- The USDIndex slumped to 104.7, EURUSD rose to 1.0830 and USDJPY drifted at the EU open below 156.
- Gold rose almost 1% to $2358.12 per ounce, while USOIL advanced to $78.18 after shrank US stockpiles, and as traders looked ahead to a report from the International Energy Agency that’ll shed light on market balances into the second half.
- Copper spiked to a fresh record high at $5.12 a pound after a squeeze partly due to traders playing the arbitrage between futures on Comex and the Shanghai Futures Exchange.
Market Trends:
- Big tech climbed, however, boosting the NASDAQ 0.75% to a new all-time high of 16,511. The S&P500 rose 0.48% to 5246. The Dow advanced 0.3%.
- Sony shares jumped by 12% after strong earnings, a stock split and a share buyback of ¥250bn ($1.6bn).
- Tesla gained 3.3%. Tencent Holdings surged after the company’s revenue beat estimates , while Alibaba Group Holding Ltd.’s slid on a profit plunge, highlighting the growing divergence between China’s twin Internet powerhouses.
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Andria Pichidi
Market Analyst
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