🗓 Wednesday, July 30
► Auto industry weakens in Europe; Market remains cautious with focus on data, earnings, US-China trade, and Fed rate decision
European markets are mixed on Wednesday as investors awaited the Federal Reserve’s interest rate decision and further developments in US-China trade talks. The Stoxx 600 trades flat (+0.15%), with the DAX +0.20% despite post earnings losses of Adidas. Both while Porsche and Mercedes-Benz fell after lowering guidance due to tariff pressures; Porsche rebounded. The CAC gained +0.60%, despite Hermès trading lower following a mixed quarter. EUR/USD (1.154) is little changed after the recent sharp slide. Overall tone in Europe was cautious, in line with the global wait-and-see sentiment.
► US futures steady ahead of Fed, with earnings spotlight on Microsoft & Meta
Wall Street futures are little changed ahead of the FOMC decision and Powell’s press conference, with traders reluctant to take major positions before clarity on rate path. The S&P 500 futures are slightly up (+0.1%) flat, Nasdaq 100 +0.2%, while Dow futures trades flat in pre-market trading. Fed funds futures price in a 98% chance of no change, but markets are watching Powell's tone closely, especially regarding September cuts. Earnings also dominate the landscape, with Microsoft and Meta reporting post-close. Starbucks +4.7% showed robust consumer strength, while Visa -2% fell despite beating expectations – both reported yesterday after the bell. 10Y US Treasury yield trades flat. Trade negotiations with China remain unresolved, adding to the cautious mood.
► Asia mixed: Chinese equities drag, Japan flat, Taiwan leads gains
Asian markets showed a split tone. The Nikkei slipped -0.05%, while China’s Hang Seng -1.36% and Shenzhen -0.77% underperformed on renewed concerns about China-US trade deal stability. In contrast, Taiwan surged +1.12% and Kospi +0.74%, fueled by semiconductor strength. ASX +0.6% also gained modestly. USD/JPY flat at 148.30, despite a brief tsunami alert following a Far East Russia earthquake.
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