Asian equities rose Thursday after a gain in US technology shares, while the dollar came under pressure amid a reassessment of bets on interest-rate cuts. Shares in Hong Kong and mainland China climbed at the open, while those in Japan and Australia also gained. Contracts for US equities also advanced after the S&P 500 notched its 25th record close this year. Nvidia Corp. — the poster child of the artificial-intelligence frenzy — led a rally in the “Magnificent Seven” megacaps to top $3 trillion in value. Treasury yields ticked higher Thursday after falling in the previous session with markets almost fully pricing in two Federal Reserve rate cuts in 2024. The dollar retreated as a rate cut in Canada increased the focus on the policy path from the Federal Reserve. The yen recovered from an overnight selloff in what has been a volatile week for the currency thanks to its role in emerging market carry trades. India’s stock futures gained after Indian Prime Minister Narendra Modi won crucial backing from two key allies in his coalition, allowing him to form a government and extend his time in power. As investors awaited this week’s US jobs report, a private payrolls reading on Wednesday showed hiring at companies grew at the slowest pace since the start of the year. Meantime, the services sector expanded by the most in nine months, powered by the largest monthly gain in a measure of business activity since 2021. The loonie rebounded Thursday after falling in its previous session. The Bank of Canada became the first Group of Seven central bank to kick off an easing cycle, cutting interest rates on Wednesday and signaling more may follow. The euro slightly strengthened ahead of the European Central Bank’s policy decision. While policymakers are widely expected to cut rates, traders will be looking for guidance on the path forward, notably from President Christine Lagarde at the press briefing. In commodities, oil clawed back some losses for a second session with technical support after OPEC+’s plan to return barrels to the market sparked a selloff at the start of the week. Meanwhile, Saudi Aramco lowered prices for all of its oil to Asia next month, the first reduction since February, amid concerns over the strength of demand in its biggest market. Goldman Sachs Group Inc.’s Scott Rubner noted a “wall of money” from passive equity allocations will pour into the stock market in early July, setting up a continuing rally through the early summer. Since 1928, the first 15 days of July have been the best two-week trading period of the year for equities, and they tend to fade after July 17, according to Rubner. The S&P 500 has been positive for nine straight Julys, posting an average return of 3.7%. The Nasdaq 100 has an even better record, posting gains in 16 straight Julys, with an average return of 4.6%, he noted. With earnings season basically over, the focus now turns back to the macro data — and that may impact stocks near-term, according to Gillian Wolff at Bloomberg Intelligence. The Bloomberg Intelligence Market Pulse Index, a sentiment gauge that acts as a contrarian signal, advanced within striking distance of “manic” territory last month. It’s a rare sign that has typically tempered US stock returns in the short-run. In the three months following a manic reading, the Russell 3000 Index has gained an average 1.7%, compared with 9.1% after panic.
With the Fed widely expected to stay on hold next week, the focus of the meeting will be the new Summary of Economic Projections. Back in March, Fed officials maintained their outlook for three rate cuts in 2024. US After Hours SMAR +12%, LULU +10.4%, SMTC +6.3% higher on earnings; CXM -19.6%, FIVE -14.1% lower on earnings; COST -0.1% reports May comps.
Nikkei +0.69% Hang Seng +0.09% CSI +0.27% Shanghai -0.21% Shenzen -1.53%
Eur$ 1.0892 CNH 7.2555 CNY 7.2441 JPY 155.63 GBP 1.2800 CHF 0.8908 RUB 89.0539 TRY 32.3313 WTI$ 74.48 +0.55% Gold 2,370 +0.62% BTC 71,117 -0.13% ETH 3,865 +0.02%
S&P +0.00% Nasdaq +0.06% EuroStoxx +0.42% FTSE +0.30% Dax +0.30% SMI +0.16%
Macro :
- U.S. Clears Way for Antitrust Inquiries of Nvidia, Microsoft and OpenAI
- Goldman Sees ‘Wall of Money’ Fueling Stock Market’s Summer Party
- Goldman Sees ‘Wall of Money’ Fueling Stock Market’s Summer Party
- Activists Tell London Firms to Go List Elsewhere: ECM Watch
- Paul Weiss’s Langston Sees ‘Stars Aligning’ for Uptick in M&A
- NYC-Area Airports Can Keep Reduced Flight Schedule Until October
Keep an eye on :
Keep an eye on :
- ALO FP : Proxima (Antin Backed Structure) in talks for 12 Avelia Horizon trains - FT
- AAPL US : How Apple Fell Behind in the AI Arms Race -- WSJ
- ARGX BB : Argenx Granted FDA Orphan Drug Status for Empasiprubart
- ASML NA : ASML Surpasses LVMH as Second-Biggest Stock in Europe
- ASML NA : ASML Surpasses LVMH as Second-Biggest Stock in Europe
- ASML NA : ASML May Cinch €700 Million on Two Extreme UV Tool Sales: React
- ATO FP : Atos Extends Deadline for Restructuring Proposal to Next Week
- BA US : Boeing Starliner Takes Astronauts to Space After Years of Delay
- BMW GY : Susanne Klatten to Hand Over SKion Ownership to Children: WiWo
- CYTK US : Cytokinetics Rebounds After Confirming Prior M&A Interest
- DARK LN : Darktrace, LondonMetric Property, Vistry Group to Join FTSE 100
- EAPI FP : EUROAPI Says Eligible to Share Up to €1B in Public EU Funding
- FBK IM : FinecoBank May Net Inflows EU946M
- LLY US : Lilly’s Obesity Drug Crunch Shows Signs of Easing in Japan
- LMP LN : Darktrace, LondonMetric Property, Vistry Group to Join FTSE 100
- LDO IM : Leonardo Working on Bid for Iveco Defence Vehicles: Corriere
- MC FP : Bernard Arnault’s Son Frederic Named to Financière Agache Board
- NEM GY : Nemetschek to Buy US Tech Firm GoCanvas; No Terms
- RCO FP : Remy Cointreau FY Current Operating Income Beats Estimates
- VEON US : Veon Sees 16% to 19% Revenue Ex-FX CAGR In New Mid-Term Goals
- VOE AV : Voestalpine Restated 2022/23 Report on Fraudulent Entries: OOeN
- VTY LN : Darktrace, LondonMetric Property, Vistry Group to Join FTSE 100
- WG/ LN : Wood to Engage With Sidara to Determine a 230p/Share Firm Offer