Before market opening (25.07.2023)

  • Yesterday’s trading session on Wall Street marked the 11th straight positive close for the Dow Jones.
  • Indices in the Asia-Pacific region showed notable gains in Tuesday’s session. Although Japan’s Nikkei is down 0.1%, Australia’s S&P/ASX 200 index is up 0.4% and Chinese futures are down 2.3%.
  • The particularly positive mood in the Chinese market is due to new announcements about the implementation of economic stimulus at the Politburo meeting, especially in the declining real estate sector and vis-a-vis the debt market.
  • In addition, large state-owned banks intervened in the foreign exchange market by selling USD and thus strengthening the yuan, as the PBoC lowered the USDCNY pair to 7.1406 (vs. 7.2044 expected).
  • Futures point to a slightly lower opening for today’s session in Europe and the US.
  • The DXY Dollar Index has lost some of its bullish momentum but remains at 101, while EUR/USD remains below the 1.11 barrier.
  • The Australian dollar dominates the foreign exchange market today, reacting to the appreciation of the Chinese yuan and a rise in the Australian consumer confidence index.
  • According to sources familiar with the matter and cited by Bloomberg, the BoJ intends to raise the inflation forecast to 2.5% this year.
  • Crude oil futures held on to most of their recent gains after hitting three-month highs on Chinese hopes of an overall market rally.
  • The beginning of the session brings a clear appreciation of the precious metals. Gold gains more than 0.45% and rises above $1960 per ounce, while silver adds more than 0.85% in one day.
  • Investors’ attention today will focus on IFO data from Germany, consumer confidence in the US, quarterly results from fashion companies LVMH and EssilorLuxottica, as well as reports from Microsoft, Alphabet, Visa and Moody’s.
  • Apple is facing a class action brought by more than 1,500 UK app developers over high App Store fees. The lawsuit is estimated at almost DKK 1 billion.
  • Sentiment in the cryptocurrency market was subject to widespread selling, initiated yesterday by Bitcoin falling below the $29,000 barrier. Today, this psychological level is being tested again.

Forex heat map. Source: xStation 5

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