📆 Wednesday, August 7
► The Stoxx Europe 600 index rose by more than 1% as investors reacted to earnings reports, economic data and yesterday's strong Wall Street rebound. Novo Nordisk shares fell more than 2% after lowering its profit forecast due to underwhelming sales of its weight-loss drug, Wegovy. Other notable declines included Commerzbank, Puma, and Beiersdorf following earnings misses. In positive economic news, France's trade deficit narrowed to €6.1 billion in June, down from May's €7.7 billion, driven by a rise in exports and a slight fall in imports. On the other hand, Germany recorded a trade surplus of €20.4 billion in June, though below consensus estimates, with exports down significantly at -3.4% and imports up 0.3%. Overall, however, after sharp losses in recent days, market sentiment has significantly improved.
► Futures on the S&P 500 and Nasdaq 100 both rose over 1% after a strong rebound on Tuesday, where the indexes surged due to strong dip-buying after the recent (global) stock market crash. Investors are closely watching the Federal Reserve's upcoming decisions and assessing corporate earnings. Treasury yields ticked higher, and the DXY (USD index) rose for the second consecutive day. However, it's important to still acknowledge the recent turmoil and the still elevated volatility which acts as a reminder that things can change quickly.
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