Global stocks are mixed following eventful after-hours and overnight sessions, with most of the main benchmarks being in the red, but with the Nasdaq continuing yesterday’s rally. The tech benchmark recovered from a steep two-day selloff, with the most awaited earnings report boosting the market-leading benchmark.
Nasdaq 100 Futures, 4-Hour Chart Analysis
Apple reported great numbers yesterday after the bell, as average selling price and services led growth for the largest public company, which is exactly in line with the company’s strategy to tackle the challenge of the maturing iPhone market.
Apple (AAPL), 4-Hour Chart Analysis
The company got very close to the historic $1 trillion capitalization mark, as it surged by 4% pre-market, but the weight of the broader market pulled tech stocks lower, and for now, the Nasdaq is only a bit more than 0.5% higher compared to yesterday’s close.
The trade war saga provided another twist after the recent rumors regarding the possible resumption of the US-China negotiations, as the US is reportedly planning to increase tariffs for as much as $200 billion in goods and services, and that sparked a flight to safety in the usual suspect markets. Chinese equities and commodities were hit the hardest yet again, with the Shanghai Composite turning sharply lower after its oversold bounce that followed the June slump.
Shanghai Composite, 4-Hour Chart Analysis
While it’s unclear how far the current escalation will reach, as the US-EU agreement puts additional pressure on China, and the main driver of emerging market weakness, rising interest rates, is still present.
Elsewhere in Asia stocks celebrated Apple’s earnings, even as the Bank of Japan’s confusing monetary policy change caused some turmoil in Japanese bonds. European stocks are generally lower, and the market is back to the state of the recent months, with the Nasdaq leading and everything else only following the US tech segment.
Fed Meeting a Non-Event this Time Around?
EUR/USD, 4-Hour Chart Analysis
The Dollar is slightly higher today before the Fed’s scheduled monetary meeting, with mostly the overnight risk-off shift driving forex markets. Economic numbers were mixed today, with the ISM Manufacturing PMI missing the consensus estimate but the ADP Employment Report coming in better than expected. The private is loosely correlated by the more
Analysts don’t expect a rate hike today from the US central bank, but any hint on a change in the tightening schedule could cause volatile swings in the summer trading environment so day-traders should be aware of the usual Fed-Day “chopfest”. Treasury yields are higher across the board, with especially the long-end of the curve rallying, and the 10-year yield topped 3% once again, edging closer to the May high before today’s decision.
Copper Futures, 4-Hour Chart Analysis
As we mentioned earlier, commodities are under pressure again, and copper is among the weakest of the key assets, plagued by Chinese weakness and the weak US manufacturing measure, and the industrial metal is now close to its recent low, erasing most its correction gains. Gold is also back near the $1225 level, while crude oil is down for the second day in a row, as the rally above $70 per barrel faded as expected.
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