Welcome to our daily market update! In this edition, we’ll dive into the latest developments in the US equity markets, economic data releases, currency movements, commodity trends, and digital assets. Stay informed and make informed decisions!
US Equity Markets Surge
On Tuesday, US benchmark equity indexes showcased remarkable strength. The Dow Jones Industrial Average soared 1.06% to 34,951.93, reaching its highest level since April 2022. Similarly, the Nasdaq 100 climbed 0.82% to 15,841.35, while the S&P 500 advanced 0.71% to 4,554.98. These bullish movements indicate growing investor confidence.
Mixed Retail Sales Data
Headline US retail sales for June rose by 0.2%, falling short of expectations. However, the data for May was revised higher, showing sales increased by 0.5% instead of the previously reported 0.3%. Despite the mixed retail sales data, the US Dollar rebounded from a 15-month low due to strong gains in core retail sales during June. Investors are now eagerly awaiting the Federal Reserve’s upcoming interest rate decision.
Manufacturing Data and Global Inflation Watch
Data released on Tuesday revealed an unexpected decline in US factory production for June. Nevertheless, the overall Q2 performance showed a rebound, especially with the acceleration of motor vehicle output following two consecutive quarterly declines. Traders worldwide are closely monitoring inflation releases from regions like the Eurozone, UK, and Japan for insights into global inflation trends.
Currency Market Highlights
The Dollar Index experienced fluctuations but eventually settled up 0.04% on the day at 99.924. USD/JPY rose to 138.83 after hitting a low of 137.245 last Friday. EUR/USD remained relatively stable at 1.1229 but previously reached 1.12760, the highest level since February 2022. The European Central Bank (ECB) is anticipated to raise interest rates by 25 basis points in the upcoming week. On the other hand, GBP/USD declined to 1.3046, while AUD/USD dropped to 0.6813 following the Reserve Bank of Australia’s (RBA) July policy meeting.
Commodity Trends
West Texas Intermediate (WTI) crude oil saw a resurgence on Tuesday, bouncing back after the US reported lower than expected retail sales for the previous month. WTI crude for August delivery settled at $75.75 per barrel, gaining $1.60. September Brent crude also climbed $1.14, reaching $79.64. Previously, oil prices dipped due to China’s reported 6.3% Q2 GDP growth, indicating subdued oil demand in the country.
Gold Reaches 7-Week Highs
Gold prices surged to 7-week highs after the European and Canadian central banks signalled their efforts against inflation. The ECB hinted at a potential pause in rate hikes from September onwards, while Canada’s inflation returned within the Bank of Canada’s controlled range for the first time since March 2021. August COMEX gold futures settled at $1,980.80/oz, recording a 1.2% increase. Spot gold reached $1,977.62/oz, up 1.2%, with the session high at $1,988.25.
Digital Assets Market
In the world of digital assets, most major cryptocurrencies experienced mixed movements. Bitcoin (BTC/USD) declined by 0.5% in the past 24 hours, trading at $29,745, fluctuating between $30,275 and $29,556. Ethereum (ETH/USD), on the other hand, gained 0.3% and stood at $1,899. XRP (XRP/USD) rose 4.2% to $0.7670, while BNB (BNB/USD) fell by 1.68%, settling at $240.20.
Global Markets in Flux Amid Economic Data and Central Bank Moves
October 4, 2023
