Archives of “July 30, 2021” day

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European major indices end the week in the red for the day

  
Analysis, Global Indices

Down day for most indices today

Today, the major European indices are ending the week in the red.  Looking at the provisional closes:
  • German DAX, -0.5%
  • France’s CAC -0.2%
  • UK’s FTSE 100 -0.6%
  • Spain’s Ibex, -1.25%
  • Italy’s FTSE MIB, -0.6%
For the week,
  • German DAX, -0.75%
  • France’s CAC, +0.7%
  • UK’s FTSE 100, +0.1%
  • Spain’s Ibex, -0.5%
  • Italy’s FTSE MIB, +1.1%
In other markets as London/European traders exit for the day:
  • Spot gold is trading down $5.80 or -0.32% at $1821.60
  • Spot silver is up to censor 0.08% at $25.52
  • WTI crude oil is up $0.36 or 0.49% $73.75
  • Bitcoin is trading at $39,040. That’s down $660 on the day

Economic data coming up in the European session

  
  Analysis
Major currencies are mostly little changed to start the new day as the market stuck with the post-Fed narrative in trading yesterday. With month-end being a factor to consider today, we might not get much poise for market participants to really move the needle.
As such, the post-Fed tones may yet continue for the time being.
The greenback is experiencing its worst week since May and it has been a rough week overall but amid a retreat in risk sentiment on the day, the dollar may find a bit more of a footing going into the weekend.
Tech stocks in particular are not faring well after Amazon warned that its stellar growth during the pandemic is starting to wane. Nasdaq futures are down over 1% with S&P 500 futures down 0.7% as we look towards European trading.
Dow futures are also down 0.3%, so there is a broader retreat in risk so far today.
The resumption of the sharp fall in Hong Kong and Chinese stocks today also isn’t helping with the mood, as the latter is down by another 2% currently.
Looking ahead, there will be a slew of euro area data for the market to digest but they should all mostly reaffirm what we already know about economic conditions in the region.

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JP Morgan – FOMC seems to further reduce the chances of a September taper announcement

  
  Analysis

A snippet from JPM’s assessment of the FOMC statement and Powell’s news conference comments this week:

  • the statements reference to ‘meetings’ (plural) would seem to further reduce the chances of a September taper announcement. In 2013. the FOMC statements didn’t begin to acknowledge progress toward their labour market goals until September, two meetings before the December taper announcement That template would seem to suggest that tapering could be announced at the November meeting. 
  • We continue to expect a December announcement, though we see a risk it could occur in November instead
Also, JPM says the developments from the meeting and presser:

 

  • may have been a little more hawkish on tapenng, the overall message about the path of rates remains quite dovish

 

—

Earlier via Goldman Sachs on the FOMC this week, also tipping a December taper announcement.
A snippet from JPM's assessment of the FOMC statement and Powell's news conference comments this week:

Isreal will offer a 3rd dose of vaccine (to older citizens)

  
Analysis, COVID-19

Israel’s Prime Minister with the announcement – a coronavirus booster to people over 60 who have already been vaccinated.

  • a third dose of the Pfizer-BioNtech vaccine
Remarks from the PM:
  • “Reality proves the vaccines are safe. Reality also proves the vaccines protect from severe morbidity and death. And like the flu vaccine that needs to be renewed from time to time, it is the same in this case.”
I’m not sure what all the fuss is about re getting booster shots. Like I said yesterday, I take around 12 shots of coffee each morning. No biggie.

US major indices close higher

  
Analysis, US Market

Indices close off the highs for the day

The major indices closed higher on the day.

  •  The S&P and Dow industrial average traded to new all-time intraday highs.
  • The S&P close just below record close levels
  • The NASDAQ close higher for the 7th day in 8 trading days.
  • The Dow and S&P snapped a two day losing streak.
Tomorrow is the last day of the trading month, and all three major indices are on track for monthly gains.
A look at the final numbers shows:
  • S&P close up 18.37 points or 0.42% of 4419.01
  • Dow closed up 153.21 points or 0.44% at 35,084.14
  • NASDAQ closed up 15.68 points or 0.11% at 14,007 78.26
  • Russell 2000 up 15.09 points or 0.68% at 2240.05
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