We approach the half way point of what has been a predictably boring week so far. The Federal Reserve’s Jerome Powell spoke before a senate committee yesterday but even that did little to sway markets. The Chairman once again reiterated what most of us know by heart at this point: inflation has slowed down but not enough to justify a rate cut just yet. Powell is set to speak again in the House later today, most likely repeating the same sentiment once again. Odds currently stand at a 70% chance of a rate cut by September.
On the other side of the inflation spectrum, CPI data from the National Bureau of Statistics in China revealed an increase of just 0.2% in June, compared to expectations of double that figure. Although consumer prices are rising slightly, the same cannot be said for the producer price index, which has remained in negative territory since November 2022.
US indices barely moved over the last two sessions but that did not stop the S&P 500 and Nasdaq Comp from hitting consecutive record highs anyway, albeit not so impressive ones. The Nikkei 225 managed to break the mould with a more notable all-time high that came after a solid 2% rise during yesterday’s session, spearheaded by gains in Japan’s technology companies. In France, the CAC40 suffered its third straight day of losses, falling 1.6% yesterday as markets continue to monitor the rather peculiar landscape besetting French politics.
Still not much on the calendar for today, traders will have to wait until Thursday for the juicier data publications, namely US CPI and jobless claims.
Risk Warning : Trading derivatives and leveraged products carries a high level of risk.
OPEN ACCOUNT
