📆 Thursday, July 11
► European stocks posted gains, with the Stoxx 600 advancing 0.5% (these gains, however, were already realized in yesterday's afterhours trading), driven primarily by technology-sector shares such as SOITEC and Dassault Systemes. Positive economic data also supported the markets, with the UK's GDP expanding 0.4% month-over-month in May, beating forecasts. Industrial production and construction output also showed significant recovery. Germany's inflation fell to 2.2% in June, from 2.4% in May, reflecting a slowdown in goods prices and a faster drop in energy costs.
► US stock futures were steady, while the USD weakened against most major currencies ahead of the (core) CPI reading (due later today 12:30 UTC+0), expected to show a 0.2% (core) rise in June for the second consecutive month (with also headline inflation YoY expected to cool further to 3.1% down from 3.3% in May // core inflation YoY is expected to stay at 3.4%). This anticipation comes as traders bet on a potential rate cut by the Federal Reserve in September. The S&P 500 and Nasdaq 100 hit fresh all-time highs, with the tech sector, including Nvidia and Apple, driving the rally. Fed Chair Jerome Powell noted that inflation doesn't need to fall below 2% before cutting rates, citing a significant cooling in the labor market.
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