Ipek Ozkardeskaya
Swissquote Bank Ltd
The week kicks off on a weak note following a moody trading session across Europe and the US on Friday. One of the most significant moves of last two trading days of the US was a 10% selloff in Nvidia sales for … no reason other than the fact that it was the end of the month, the end of the quarter and the end of H1. And the problem with that is, because the US Big Tech stocks led by Nvidia were responsible for most of this year’s rally in major US indices, any weakness could derail the rally.
This week, the US will reveal its latest GDP update on Thursday and core PCE data on Friday. The latter better be soft enough to prevent a broader selloff in US indices. On the individual front, FedEx and Micron Technology are due to release earnings.
Elsewhere, appetite is limited. The Stoxx 600 in Europe was toppish last week as the French political uncertainties occupied the headlines. The EURUSD is under pressure. In Japan, the USDJPY is dangerously flirting with the 160 level – a level which had brought the Japanese policymakers to intervene to stop the bleeding back in April.
In energy, US crude is lower this Monday morning after having tested and failed to clear the $82pb resistance last Friday.
Chinese equities begin the week on continued downside pressure, while Indian assets will likely benefit from the Indian government bonds’ inclusion to a JP Morgan global bond index.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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