Daily Digest: Thursday 2nd May
USA
US equity performances were strong as the Nasdaq and S&P 500 snapped losing streaks and the Dow continued to rally. The Nasdaq 100 ($NDX) led gains rising 222.99 points (1.29%) to 17,541.54, followed by the S&P 500 ($SPX) which rose 45.81 points (0.91%) to 5,064.20, and the Dow ($INDU) which rose 322.37 points (0.85%) to 38,225.66. Traders will be keeping a close eye on the tech sector after hours as Apple ($AAPL) and Coinbase ($COIN) are set to report their Q1 24 earnings after the bell.
Europe
The UK’s FTSE 100 (FTSE) managed to stem losses through Thursday ending a two day loss streak. The index rose 50.91 points (0.63%) to 8,172.15 breaking a new record close as the index trades marginally off of it’s all time highs just shy of 8,200. Sixty FTSE constituents closed higher while thirty-nine moved lower. Despite a brief rally into the session, Central European indexes continued to head lower. The STOXX 600 (€SXXP) fell 1.1 point (0.22%) to 503.21, the CAC (€FCHI) fell 70.28 points (0.88%) to 7,914.65, and the DAX (€GDAXI) fell 35.67 points (0.20%) to 17,896.50.
Rest of the World
The Japanese MOF seemed to launch a second currency market intervention on Wednesday evening, as the JPY strengthened against the USD from around 157.5 to 153, a >4 Yen shift to the upside. Once again, the head of Japanese currency policy Kanda has refused to confirm whether the BOJ was directly involved in directional shifts for the JPY, citing the end of the month for full reports on policy action.
The Nikkei 225 (¥N225) traded lower for a second consecutive session, falling 37.98 points (0.1%) to 38,236.07. This came in light of yesterday’s Fed interest rate decision, in which guidance suggested that though rates hikes were unlikely, cuts are not to be expected in the short-term/near future.
Indian equities were somewhat of an outlier as traders pushed the Nifty 50 (₹NSEI) 43.35 points (0.19%) higher though Thursday, following yesterday’s bank holiday.
Commodities
WTI crude prices traded within a narrow range into Thursday evening, traders met a heavy level of resistance around $79.5 per barrel pushing momentum toward support at $78. As of 21:00, WTI prices were down 0.0253% at $78.98 per barrel.
Gold prices have seen a reversal in momentum, a change likely driven by the US rate hike narrative easing. As previously mentioned higher rates increase the opportunity cost of holding gold as an asset, lowering demand as performance as an effective inflation hedge is stunted. As of 21:00 GMT, gold prices were trading 0.0952% higher at $2,313.20 per ounce.
What To Watch Tomorrow
Eurozone Unemployment Rate
US Non-Farm Payroll
US Unemployment Rate
US Earnings:
Berkshire Hathaway Inc ($BRK.A/B)
Sources:
https://uk.finance.yahoo.com/world-indices/
https://uk.finance.yahoo.com/commodities
https://www.londonstockexchange.com/indices/ftse-100
https://www.binance.com/en-GB/price/bitcoin
https://www.binance.com/en-GB/price/ethereum
https://qontigo.com/index/sxxp/
Stock Market Activity Today & Latest Stock Market Trends | Nasdaq
https://coinmarketcap.com/charts/#market-cap
https://www.forexfactory.com
Definitions:
YoY - Year on Year, or, Year over Year
MoM - Month on Month, or, Month over Month
QoQ - Quarter on Quarter, or, Quarter over Quarter
ECB - European Central Bank
BOJ - Bank of Japan
Fed - Federal Reserve
BOE - Bank of England
SNB - Swiss National Bank
DOJ - Department of Justice