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.

SNB cuts rates, BoE holds, US stock averages eke out weekly gains, despite Nvidia setback

Intermediate

Macroeconomic/ geopolitical developments

  • In a holiday-shortened week, US stock averages posted modest gains with the Dow up 1.5%, the S&P 500 rising 0.6%, and the Nasdaq barely increasing by less than 0.1%, despite Nvidia’s stock cooling amidst market headwinds.
  • The Swiss National Bank reduced its key interest rate by 25 basis points to 1.25%, citing easing inflation, while the Bank of England kept its rate at 5.25%, with hints of a potential rate cut in August amid mixed market reactions and falling inflation expectations.
Swiss National Bank
  • Disappointing PMI data from Germany and the Eurozone contrasted with robust US PMI figures, which indicated healthy expansion in the US private sector.
  • Nvidia’s retreat from its peak this week, despite a 155% surge in 2024, triggered a $246 billion swing in market cap on Thursday, leading to a dip in the S&P 500 and in the Nasdaq, underscoring its significant market influence amid concerns about concentrated gains and potential broader market impact.
nvidia

Global financial market developments

Key this week

Central Bank Watch: Central bank activity is light this week with the focus on Fed speakers.

Macro Data Watch: The main macro data releases this week are the global CPI data throughout the week. But the main focal points for the week will be the US GDP and Durable Goods data Wednesday, then key will be the Fed’s preferred inflation measure, the MoM and YoY PCE data on Friday.

DateMajor Macro Data
06/24/2024Germans IFO Report
06/25/2024Canadian CPI
06/26/2024Australian CPI; German GfK Consumer Confidence
06/27/2024US GDP, Durable Goods and PCE (QoQ); Japanese Retail Sales
06/28/2024Japanese CPI; German Retail Sales; UK GDP; US PCE (MoM, YoY), US Michigan Consumer Sentiment Index

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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