This MARKET REPORT is unburdened by what has been
Euronext Dublin
Day in Review:
Today:
DATA:
– If youre under a rock…. BIDEN IS OUT, KAMALA (Cackling Hen) IS IN! (Ummm why is he still President then if he literally admits he cant do the job?)
– PBoC surprisingly cut the RRR, LPR, and SLF in a bid to inject stimulus
– BoJ sources note officials see weak consumption complicating its rate decision
COMPANIES:
– Verizon (-6.5%) earnings meet market expectations at 1.15p/s
– NVIDIA +5% on news of China-legal AI chip
– Reddit (+8%) lands content partnerships with NFL, NBA, MLB
– Crowdstrike pukes -13%
– Theatre chain AMC reaches new refinancing deal, +10%
– Tesla (+5.5%) surges on ‘Humanoid Robot’ reports
– Mattel up 17%
– Delta (-2.4%) cancellations mount post Crowdstrike outage
GENERAL:
– Global official gold reserves have increased by 290 net tonnes in the first quarter of 2024, the highest since 2000, according to the World Gold Council, 69% higher than the five-year quarterly average
– Israel aircraft hit Yemen Oil Refineries after Houthi drone attack hits Tel Aviv on weekend
– Secret Service DEI hire Cheatle faces House Oversight Committee
– Stocks in Czech Republic hit 16yr High, Hungary all-time high (Viktor my-man)
– Canola (+3.64%) hits 7-week high
– US Natural Gas futures +5.5%
– Euro Bourses close strongly Higher
– Tech surges, Dollar/Gold/Silver/Crude flat, Crypto firms, Treasuries up, focus on company news!
DOLLAR DX UNCH: 104.33 UNCH (104.19 – 104.42) MID
– AUD down: 66.40 -0.65% (67.01 – 66.32) LOWS
– EUR UNCH: 91.82 UNCH (91.76 – 91.94) Off LOWS
– GBP up: 1.2930 +0.15% (129.43 – 129.07) MID
– JPY down: 157.07 -0.23% (157.59 – 156.29) MID
GOLD DOWN: $2402 -2.18% (Data Unavail) LOWS
DOW/ES/ND up/up/UP: 40688 +0.3%, 5608 +0.98%, 19975 +1.33%
CRYPTO: BTC/ETH UNCH: 68053 UNCH, 3488 -0.69%
CRUDE down: $79.95 -0.22%
Coming up this week:
– Core PCE, GDP, US & UK Retail Sales, Japan, NZ, UK and Canada inflation, and the ECB Policy Announcement……………… LOTS of earnings!
TOM:
– EU Consumer Confidence, US Richmond Fed Index
Speakers:
– ECB: Lane
EARNINGS:
– Alphabet, Tesla, Visa, Coca-Cola, GE Aerospace, General Motors, Philip Morris International, Spotify.
MAJORS:
DX:
The Dollar Index was marginally firmer to start the week in what was a quiet start to the week ahead of a deluge of risk events, in the form of US GDP Advance (Thurs) and PCE (Fri). In thin newsflow, the key story out of the US was over the weekend, whereby President Biden dropped out of the race for re-election with VP Harris the clear favourite to be the Democratic nominee. However, little reaction was seen in FX with the Greenback in narrow ranges, highlighted by a high of 104.420 and a low of 104.180.
DOLLAR DX UNCH: 104.33 UNCH (104.19 – 104.42) MID
EUR:
EUR UNCH: 91.82 UNCH (91.76 – 91.94) Off LOWS
GBP up: 1.2930 +0.15% (129.43 – 129.07) MID
AUD
Aussie continuing its losing streak to see the cross print a trough of 0.6632, while NZD/USD bottomed out at 0.5973, with the two currencies potentially weighed on by the continued lingering concerns around China. On that footing, the Yuan was slightly softer against the Dollar after stimulus efforts by Chinese officials overnight, although the market was seemingly unimpressed with the effort, whereby they conducted surprise rate cuts overnight to the RRR, LPR, and SLF.
AUD down: 66.40 -0.65% (67.01 – 66.32) LOWS
YEN:
USD/JPY hit a low of 156.29 but currently resides around 157.00, with participants awaiting Tokyo CPI on Friday. Nonetheless, the Yen did see some weakness after Bloomberg sources reported that the BoJ is said to see weak consumption complicating its rate decision, and officials are likely to wait until the last minute to finalize their decision after checking the latest data on markets and economic conditions at the gathering ending on July 31st
JPY down: 157.07 -0.23% (157.59 – 156.29) MID
GOLD/METALS:
Gold prices continued their slide for the fourth consecutive session on Monday amid U.S. political uncertainty that saw President Joe Biden drop his reelection bid a day earlier.
Meanwhile, traders will be closely watching economic data expected this week on the preliminary S&P Global PMI, second-quarter GDP, and June’s critical personal consumption expenditure price index – the Fed’s preferred method of measuring inflation.
Gold sank below the key $2,400 support level in midday trading, down $18.13 at $2,393 per ounce – a dramatic turnaround for the yellow metal after it hit an all-time high of $2,483 per ounce last Wednesday. Silver, meanwhile, wasn’t faring much better, as concerns about demand from China continued to weigh on the gray metal. It was trading down more than 1% on the day at $29.11 per ounce.
Political uncertainty surrounding the U.S. election continued to pressure gold a day after President Biden dropped his reelection bid at the head of the Democratic ticket and threw his support behind Vice President Kamala Harris only a few weeks out from the Democratic National Convention in Chicago. The party was still in a tailspin Monday as Harris looked to consolidate support for her election bid even as several key party members came up short of endorsing her, including former President Barack Obama. In a statement on Sunday, Obama expressed “extraordinary confidence that the leaders of our party will be able to create a process from which an outstanding nominee emerges.”
– erasing the post-CPI gains
GOLD DOWN: $2402 -2.18% (Data Unavail) LOWS
EQUITIES:
– The Nasdaq/Russell 2000 pair found support in its nine-month range and bounced today
US:
– SPX +1.08% 5,664
– NDX +1.54% 19,822
– DJI +0.32% 40,415
– RUT +1.69% at 2,221
EUROPE:
– DAX +1.35% 18,417
– FTSE +0.53% 8,199
– CAC +1.16% 7,622
– ES50 +1.44% 4,897
Sectors (S to W): Technology +1.96%, Communication Services +1.2%, Industrials +1.07%, Real Estate +0.98%, Utilities +0.87%, Consumer Discretionary +0.87%, Financials +0.64%, Health +0.57%, Materials +0.34%, Consumer Staples -0.04%, Energy -0.72%.
STOCKS:
– Boeing (-0.43%) – Won its first contract since guilty plea
– Amazon (-0.32%) – Amazon Japan will begin selling prescription drugs online this year in collaboration with drug store chain operator Welcia Holdings, according to Nikkei.
– Apple (-0.16%) – Wells Fargo raised its PT to USD 275 (prev. 225) ahead of earnings; said it expects Apple Intelligence will drive a “significant upgrade cycle” for the iPhone maker.
OIL:
CRUDE down: $79.95 -0.22%
BOND YIELDS:
US 1-MO 5.37 +0.002
US 6-MO 5.195 +0.002
US 1-YR 4.887 +0.011
US 5-YR 4.174 +0.012
US 10-YR 4.254 +0.016
US 30-YR 4.472 +0.023
2YR/10YR -0.27
CRYPTO
– Bitcoin up on Biden dropping out over weekend
– Rumours Musk may attend 2024 Bitcoin Conference
– Spot bitcoin ETFs hit a new all-time high of roughly $17 billion in cumulative inflows on Friday. Spot ether ETFs are expected to launch soon.
– Bernstein analysts say the lift a reelection of former President Donald Trump could give to crypto prices isn’t fully priced into the market. The possibility of a more crypto-friendly environment in Washington may have lifted Solana lately.
– JPMorgan analysts wrote that a a potential bitcoin price rise could end up being temporary, as bitcoin’s price remains elevated relative to its cost of production and relative valuation compared to gold
CRYPTO: BTC/ETH UNCH: 68053 UNCH, 3488 -0.69%
KEEP DOING WHATS WORKING
Best of luck out there. Let the market come to you
Joke of the Day:
Song of the day:
Graph of the Day:
– Biden’s removal from the ticket for the 2024 election sent Kamala Harris odds of winning in November soaring (but note she remains below the pre-debate levels that Biden had reached)
On this day:
July 22nd 2003: Qusay and Uday Hussein killed
July 22nd 1934: John Dillinger Killed
(Seize all assets of Duke and Duke enterprises)
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