US Stocks Mixed, Trade Surpluses in China
Major Events from Yesterday:
Yesterday saw big movement in the markets. The US stock markets had a mixed session. The Dow Jones Industrial Average and the S&P 500 struggled to gain momentum, while the Nasdaq 100 showed a slight recovery. This comes on the heels of heavy losses in the Nasdaq and Nikkei 225 earlier this week (DailyFX) (DailyFX).
Economic Data Released Today:
- China’s Balance of Trade (July): The trade surplus narrowed to $84.65 billion, missing the forecast of $90 billion and the previous figure of $99.05 billion (DailyFX).
- Germany’s Balance of Trade (June): The trade surplus fell to €20.4 billion from a revised €25.3 billion in May, missing the forecast of €24 billion (DailyFX).
Upcoming Data:
Today’s focus key economic releases:
- US Crude Oil Inventories
- Canada’s Ivey PMI
Major Currency Pairs Overview
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EUR/USD: The pair remains mixed, hovering around the 1.0912 mark. The Euro is struggling against a stronger USD as markets digest the latest trade data from Germany (DailyFX) (DailyFX).
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GBP/USD: The Pound is bearish, trading lower amid uncertainties surrounding the Bank of England’s recent rate decision (DailyFX).
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USD/JPY: Trades lower near 146.710 due to a stronger yen, which could be seen after the latest decision by the Bank of Japan to raise its rates to 0.25% with a plan for bond tapering. That more cautious stance has strengthened the yen amid uncertainties in the global economy.
Commodities
- Oil: Crude oil prices are mixed today. US crude is trading cautiously ahead of the inventory data release. Market participants are balancing supply concerns with demand outlooks (DailyFX) (DailyFX).
- Gold: Gold remains range-bound, with a bearish outlook. It is currently weak, impacted by a strong dollar and fluctuating market sentiment (DailyFX) (DailyFX).
Political News:
In the UK, political tensions are high as the government faces challenges related to its economic policies. Across the pond, the US is preparing for the upcoming Federal Reserve meeting, with market participants speculating on potential rate changes following recent economic data releases.