Market Wrap: Stocks, Bonds, Commodities
On Wednesday, U.S. tech stocks fell further, with the Nasdaq 100 dropping 135 points (-0.58%) to 23,249.
The S&P 500 extended its decline to a fourth session, closing 15 points lower (-0.24%) at 6,395. The Dow Jones Industrial Average gained 16 points (+0.04%) to 44,938.
Minutes of the Federal Reserve’s policy-meeting in July showed that two policymakers dissented against the central bank’s decision to leave rates unchanged, arguing in favor of cutting.
Big tech names underperformed the market, with Intel (INTC) retreating 6.99%, Apple (AAPL) down 1.97%, Amazon (AMZN) down 1.84%, Alphabet (GOOGL) down 1.12%, Microsoft (MSFT) down 0.79%.
Palantir (PLTR) fell 1.10%, posting a 6-session decline and losing 17% in total along the way.
Target (TGT) slid 6.33%. Though the retailer reported better-than-expected quarterly results, investors were dissatisfied with the company’s choice of its new chief executive.
Estee Lauder (EL) dropped 3.67%. The cosmetics company gave a downbeat full-year earnings forecast.
The U.S. 10-year Treasury yield retreated for the second session, falling 1.9 basis points to 4.291%.
In Europe, the FTSE 100 rose 1.08% to a record closing level.
The DAX fell 0.60%, and the CAC dipped 0.08%.
U.S. WTI crude futures increased 86 cents (+1.40%) to 63.21 dollars a barrel. U.S. data showed a much-bigger-than-expected reduction of 6 million barrels in crude-oil stockpiles.
Gold price rebounded 32 dollars to 3,348, back to its 20-day moving average.
Market Wrap: Forex
The U.S. dollar index was little changed at 98.25.
EUR/USD was stable at 1.1648. Germany's producer prices fell 1.5% year on year in July (vs -1.4% expected).
GBP/USD fell 42 pips to 1.3448, down for a third straight session. U.K. data showed that the inflation rate accelerated to 3.8% year on year in July, the highest level in 18 months.
USD/JPY dropped 25 pips to 147.41, and USD/CHF slipped 33 pips to 0.8041.
AUD/USD declined 23 pips to 0.6430.
Bitcoin rebounded after two sessions of heavy losses, jumping over 1% to 114,600 dollars.
Morning Trading
In Asian trading hours, EUR/USD was little changed at 1.1645, while GBP/USD edged up to 1.3455.
Meanwhile, USD/JPY was broadly flat at 147.40.
Gold eased to 3,342 dollars.
Bitcoin was steady at 113,953 dollars.
Expected Today
The HCOB manufacturing purchasing managers index for August is expected at 49.7 for the eurozone, 48.7 for Germany and 48.2 for France. Services purchasing managers index is estimated at 50.8 for the eurozone, 50.3 for Germany and 48.5 for France.
The S&P Global manufacturing purchasing managers index for August is expected at 48.6 for the U.K. and 49.7 for the U.S. Services purchasing managers index is estimated at 51.7 for the U.K. and 53.0 for the U.S.
In the U.S., the Philadelphia Fed manufacturing index is expected to drop to 9.0 in August, while the weekly initial jobless claims are estimated at 225,000. Also, existing homes sales and the leading index are both expected to be down 0.2% month-on-month in July.
Canada's producer price index is estimated to increase by 1.9% year-on-year in July.
Source : Trading Central