17 July 2024
The Trade Academy Team
07:30 CET - 3 min read
Wednesday Morning Coffee - Markets Update - 17 July 2024 - Gold Soars Amid Rate Cut Speculation; Trump Comments Rattle Taiwan Stocks
Markets Update: In the technology sector, ASML, the largest equipment supplier to chipmakers, reported better-than-expected second-quarter earnings, with shares expected to open higher.
by TradingView
Global Markets Roundup: 17 June 2024
On Wednesday, gold reached a record high and bonds surged as markets anticipated global interest rate cuts. Meanwhile, Taiwanese stocks tumbled following lukewarm comments from U.S. presidential candidate Donald Trump regarding the island's defence.
In market movements, FTSE futures Z1! rose 0.2%, while S&P 500 futures ES1! fell 0.2% after the cash index SPX hit a record high on Wednesday. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) remained flat, and Japan's Nikkei NI225 fell 0.4%. The uncertainty surrounding Trump's plans was compounded by his selection of trade hawk J.D. Vance as his running mate, signaling a tough stance on China. Chinese stocks remained subdued for a second consecutive day.
U.S. Treasuries held gains, pushing 10-year yields to four-month lows overnight after Federal Reserve Chair Jerome Powell noted that recent cooling inflation readings "add somewhat to confidence" that consumer prices are stabilising. Fed funds futures have fully priced in a U.S. rate cut for September, with two more expected by the end of January 2025. Ten-year yields (US10Y) remained steady at 4.167%, and two-year yields (US2YT=RR) hovered at 4.44%. Bond markets in Australia, Japan, and South Korea also rallied.
In currency market, the Japanese yen USDJPY was steady at 157.9, well off a 38-year low of 161.96 touched earlier in July after suspected intervention from Japan late last week. The euro EURUSD held steady at $1.0905. The British pound GBPUSD ticked higher after British inflation held steady at 2% year-on-year in June, defying forecasts of 1.9%. Services inflation remained uncomfortably high at 5.7%. The Taiwan dollar USDTWD slipped to a two-week low, while China's yuan USDCNY steadied at 7.2673 per dollar, with markets awaiting outcomes from a leadership meeting in Beijing concluding on Thursday.
In commodities and soft commodities, oil prices dipped slightly, pressured by signs of weakening demand from China. Brent crude futures BRN1! fell nine cents to $83.64 per barrel, and U.S. crude futures CL1! dropped seven cents to $80.69 per barrel. Lower yields boosted GOLD, which surged through chart resistance around $2,450 per ounce despite a broadly firm dollar, touching a record $2,482 in Asia trade on Wednesday.
Looking ahead today, markets anticipate, UK Inflation Rate, EU Inflation Rate, US Building Permits, US Industrial Production, EIA Crude Oil Stocks Change.
You can view all markets data and charts here.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
Rating: Mixed Outlook
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