Wall Street tries to regain footing after back-to-back losses

📰 Global stocks try to stabilize after two negative sessions – Asian stocks closed slightly lower today, Europe is mixed but struggling with slowing demand and an ongoing energy crisis. Wall Street is pointing to a positive opening, reflecting that markets are less concerned than the wave of fear that swept across assets when U.S. House of Representatives Speaker Nancy Pelosi traveled to Taiwan. Pelosi has already left the country, which China considers its own territory.

Corporate earnings were mixed and we see Airbnb and AMD falling sharply after rising sharply in the previous session on expectations of more positive earnings reports. PayPal, on the other hand, rose after the payments giant raised its earnings forecast for the year, helped by activist investor Elliott Management taking a stake worth more than $2 billion.

U.S. government bond yields continued to rise yesterday as bonds continued their sell-off triggered by some hawkish remarks from Fed officials indicating that the central bank still has some work to do to curb inflation. Fears of a tighter Fed stance could again lead to profit-taking – especially in cyclical/tech stocks, which had rallied strongly in July. 

Oil prices received the expected boost when OPEC+ ministers agreed to increase production by only 100,000 barrels per day for September, providing additional supply to the tight market at a much slower pace than in recent months. I don't expect oil prices to gain much more today and see oil prices falling in August. Gold was down, but has moved back above $1,770 – as we expected. I still expect gold to test $1,800 in the short term – possibly on Friday or next week.

A harsh reaction from China remains a risk factor, as does a general deterioration in U.S.-China relations. Even if Wall Street hits new 2-month highs today, the ongoing rally is on shaky ground. Financials may benefit from higher U.S. Treasury yields, expectations of further interest rate hikes, and PayPal's positive earnings report.


🇺🇸 US Markets ↕️/↗️
Cyclical Stocks ↕️/↗️
Tech/Growth Stocks ↕️/↘️
Financial stocks ➡️/↗️
Energy ➡️/↗️

💱 Forex Markets
AUD, USD ➡️/↗️
JPY, CHF ➡️/↘️

⚒ Commodity Markets ➡️/↗️
Oil prices ↕️
Natural Gas prices ➡️/↗️
Metal prices ➡️/↗️
Precious Metals ➡️/↗️

⚡️Crypto Market ➡️

(*↗️ bullish, ↘️ bearish, ➡️ sideways / stable, ↕️ mixed / volatile)

Yours, Robert 🇨🇳🐭🔍📈🤔