The market’s momentum, fueled by optimism around earnings reports, falling interest rates and expectations that the Federal Reserve can reduce inflation without triggering a recession.
Asia & European Sessions:
- European futures rose while Asian stocks showed mixed performance following Wall Street’s record highs.
- Chinese shares saw extended losses after disappointing data showed China’s broader export growth slowed to just 2.4% year-on-year, the weakest since May, reflecting ongoing economic challenges. The lack of clear fiscal stimulus from Chinese authorities continues to weigh on investor sentiment and risk appetite in Chinese equities.
- Technology stocks in Asia followed the strong lead from their US counterparts, with the S&P500 gaining nearly 1% to reach its 46th record high this year. Despite concerns over lowered Q3 forecasts, investors seem to be betting on positive earnings surprises. The Nasdaq also advanced by 0.8%, led by gains in Nvidia Corp., Apple Inc., and Tesla Inc. Financial stocks like Goldman Sachs and Citigroup rose ahead of their earnings releases.
- Nikkei hit its highest level since July, with benchmarks in Australia and Taiwan also trending upward. Japanese stocks were among the strongest performers so far today, with the Yen maintaining strength near a key psychological level against the US Dollar.
- Earnings reports: Bank of America, Johnson & Johnson, and UnitedHealth Group.
Financial Markets Performance:
- The USDIndex strengthened against most major currencies.
- The USDJPY slightly dipped to 149.34 from 149.96. The EURUSD broke 1.09 and extended to 1.0830.
- USoil dropped sharply to $70.60 per barrel from $4.18 high yesterday. Oil prices declined as concerns about potential Israeli strikes on Iranian energy facilities eased. Oil and energy shares dropped after reports indicated Israel does not intend to target Iranian oil or nuclear sites.
Click here to access our Economic Calendar
Andria Pichidi
Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
