Economic Indicators & Central Banks:
Several events are on the calendar which are keeping a cautious tone in the markets:
- Although tonight’s presidential debate is much anticipated, it’s unlikely to impact the markets as it won’t provide any real clues on fiscal or monetary policy.
- Asian shares decline, with US futures amid ongoing losses in the tech sector. Friday’s PCE chain price report has Treasury bulls sidelined for now and the run up in yields is tempering activity on Wall Street. Though expectations are for a benign report, upside surprises in Australia and Canadian CPI are generating some concerns.
- Chinese stocks are headed for a technical correction. The earlier rally that pushed Chinese equities into bull markets this year has been losing momentum due to ongoing concerns about an uneven economic recovery. Investors are now focusing on the Third Plenum, the July meeting historically known for significant economic policy announcements by the Communist Party.
Asian & European Open:
- Wall Street rallied with all three major indexes finishing in the green. A bounce in tech boosted the NASDAQ 0.49%, back to 17,805. The S&P500 was up 0.16% and the Dow edged up 0.04%.
- Micron Technology Inc.’s sales outlook fell short of the highest forecasts, denting giant tech companies in late Wall Street trading.
- Asian equities declined on Thursday, with Hong Kong experiencing the largest losses as Chinese tech companies and property developers listed in the city fell. Significant contributors to the drop included electric vehicle maker BYD, travel agency Trip.com, and Tencent.
Financial Markets Performance:
- The USDIndex was a big winner, climbing to a session peak of 106.130 before closing at 106.079, the highest since late April.
- A surge in USDJPY to 160.79, the highest since 1986, supported. Today the Yen recovered by 0.3% against the Dollar, to 160.29.
- Gold and USOIL prices declined, in part on the firmer Dollar. Bullion fell -0.49% to $2298 per ounce and USOIL slipped -0.2% to $80.36 per barrel.
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Andria Pichidi
Market Analyst
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