Key Takeaways
- 💵 Dollar near two-week high against yen after biggest one-day gain in four weeks
- 📈 Retail sales in the U.S. rose 1.0% last month, beating forecasts
- 🇬🇧 Sterling firm due to improved economic outlook and solid GDP figures
- 🇦🇺 Australian dollar steady following surge in jobs data
- 📉 Euro flat after previous session’s slide
- 📉 Recession fears decrease as economic indicators improve
- 🇺🇸 US economy shows signs of resilience
- 📉 Fed remains on track for interest rate cut in September, but chances of large rate cut have decreased
- 🔀 Japanese Yen weakening, Swiss Franc under pressure from risk-on sentiment
- 📈 Australian Dollar strong due to robust employment data, Dollar also strengthened in early US session
- 🌍 European markets showing positive growth: FTSE up 0.53%, DAX up 1.11%, CAC up 0.87%
- 📈 Japan’s economy shows strong Q2 growth, driven by private consumption and capital spending
- 🛠 RBNZ Governor outlines monetary policy shift towards a neutral setting to anchor inflation expectations
- 📊 China’s economic data mixed with decelerating industrial production but strong retail sales
- 💸 Bond yields rose as traders cut bets on a Fed interest rate cut
- 🇬🇧 UK’s FTSE 100 rose 0.8pc, with Admiral and Standard Chartered top risers
- 📉 Chinese e-commerce giant Alibaba reported lower than expected quarterly sales
- 🛢️ Oil prices steadied after Middle East and China uncertainty
- 📉 China’s new home prices fell at fastest pace in nine years
- 🛒 Retail and service sectors led the UK economy growth in the second quarter
Market Insights
The global economic landscape has seen significant movements in various currencies and markets. With the U.S. dollar near a two-week high against the yen and retail sales exceeding expectations, there are positive signs for the American economy. At the same time, the Australian dollar remains steady following a surge in jobs data, and the sterling is strong due to improved economic outlook and solid GDP figures in the UK.
Meanwhile, European markets are experiencing positive growth, with the FTSE, DAX, and CAC all showing increases. Japan’s economy has also shown strong growth in the second quarter, driven by private consumption and capital spending. In the midst of these developments, the Federal Reserve remains on track for an interest rate cut in September, albeit with decreased chances of a large rate cut.
In other news, there have been shifts in monetary policy in countries like New Zealand, with the RBNZ Governor outlining a move towards a neutral setting to anchor inflation expectations. Additionally, China’s economic data has been mixed, with decelerating industrial production but strong retail sales. The global stock market has surged after positive U.S. retail sales data, alleviating recession fears and showing signs of resilience in the U.S. economy.