22.07.24 - 26.07.24
Results of the previous week
| XRPUSD +5.89 | HOG +5.58% | VIX +5.34% |
F -20.11% | ETHUSD -6.91% | XAGUSD -5.30% |
Over the past week, US stock indices moved downward. The last time we saw them move down so quickly was at the end of 2022. The market's drop was brought on by quarterly financial reporting from Tesla Inc. and Alphabet Inc., which both failed to meet the 'high bar' set by Wall Street analysts. These two companies are from the so-called Big 7 Tech players. Tesla, a US electric vehicle manufacturer, saw its net profit shrink by 45% in Q2 2024. Alphabet Inc.'s stock price fell because of lower revenue growth from advertising and increasing capital investments.
This behavior from stock markets forced investors to look for refuge in traditionally safer assets such as bonds, the Japanese yen and the Swiss franc. As a result, the yen is significantly stronger, having risen by over 1% and reaching its highest point in the past 2.5 months. This was also supported by expectations about the Bank of Japan's meeting next week, where it could raise interest rates will be discussed.
Gold prices remained above $2,400 per ounce in the first half of the week, showing relatively stable movement. However, starting on Thursday, gold began to fall again as bond yields increased. Iron ore and oil prices also continued to fall after China's central bank unexpectedly cut long-term interest rates, adding to concerns about the world's second-largest economy. In an event that has supported bearish sentiment, copper prices have already fallen by nearly 20% from their late May peak as global inventories rise and production outpaces demand.
Key events of the current week
Bank of Japan's interest rate decision | DATE 31.07 | GMT | FORECAST | PREV. | IMPORTANCE |
The Bank of Japan (BOJ) will announce its interest rate decision and comment on its monetary policy on 31 July. The rate is expected to stay at 0.10%, just as it did last month. This decision is important for understanding the state of the Japanese economy and the direction of the central bank's future monetary policy. If the Bank of Japan hints at possibly hardening its policy and raising interest rates, it could strengthen the yen and negatively impact stock markets. | |||||
The US. Federal Reserve interest rate decision | DATE 31.07 | GMT | FORECAST | PREV. | IMPORTANCE |
The Federal Open Market Committee's (FOMC) key interest rate decision and subsequent announcement, both of which will be released on 31 July, are extremely important events for financial markets. The interest rate is expected to remain at 5.50%. If the statement and press conference indicate further steps towards monetary tightening, this could support the US dollar and negatively impact stock markets. | |||||
The US. Non-farm payrolls | DATE 02.08 | GMT | FORECAST | PREV. | IMPORTANCE |
The US Non-Farm Payrolls report for July, due out on 2 August, is a key indicator of the health of the US labour market. The expectation is that 190,000 new jobs will be created versus the 206,000 seen last month. If this number beats expectations, it could support the dollar and stock markets by signalling that the economy is healthy. | |||||
