Daily Digest:
w/c 15 July - Financials earnings reports kick off the week, then we get Netflix results Thursday. US Retail Sales is the standout macro data this week on Tuesday. We also get the latest ECB interest rate decision on Thursday.

Nvidia Surges, but Fed Minutes Signal Hawkish Bias

Intermediate

Macroeconomic/ geopolitical developments

  • Global and U.S. stock averages, led by strong performances in technology stocks and broad market participation reached new record highs, with the Nasdaq and S&P 500 closing at new peaks and the Dow Jones Industrial Average near its all-time high.
  • Nvidia’s shares soared following a stellar earnings report driven by high AI chip demand, boosting its market cap by over $338 billion this week, outpacing most countries’ GDPs and bolstering investor confidence.

nvidia
  • The Minutes from the Federal Reserve’s May FOMC meeting revealed a hawkish bias, surprising markets, raising bond yields, and increasing fears of prolonged high interest rates.
  • Due to the US Memorable Day and UK holiday on Monday 27th May all US and UK cash markets will be closed. US futures markets have a partial day of trading.
  • As May ends, markets are focused on significant inflation data releases from the eurozone and the US, with the eurozone’s CPI and the US PCE price index released on Friday set to influence central bank policies, potentially affecting interest rates and financial markets.

Global financial market developments

  • US and global equity averages reached higher before setting back
  • US and European bond were higher on the week
  • The US Dollar Index rallied then setback.
  • Gold futures sold off from the May record high
  • Oil futures sold off, then bounced, staying in consolidation mode.

Key this week

Central Bank Watch: Central bank activity is light this week but watching Fed speakers in the last week before the FOMC External Communications Blackout Period from 1st June.

Macro Data Watch: The main macro data releases this week are the German CPI data on Wednesday, then EU CPI and key US PCE data on Friday.

DateMajor Macro Data
05/27/2024US Memorial Day holiday, UK Spring Bank Holiday; German IFO report
05/28/2024US Consumer Confidence report
05/29/2024Australian CPI; Germans CPI
05/30/2024EU Consumer Confidence and Unemployment Rate; US GDP, Core Personal Consumption Expenditures (PCE) (QoQ)
05/31/2024Chinese Manufacturing and Non-Manufacturing PMI; Germans Retail Sales; EU CPI; Canadian GDP; US PCE (MoM, YoY)

Editor in chief

Steve Miley is the Market Chartist and has 32 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Mar... Continued

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