Federal Reserve (Fed) President Jerome Powell said that the Fed has made ‘quite a bit of progress’ on inflation and investors didn’t need more to jump back on the back of a bull. The S&P 500 closed at a record high again, while Nasdaq 100 hit the 20’000 mark for the first time in history.
Tesla shares jumped 10% yesterday after the company reported a smaller decline in quarterly sales than expected.
On the data front, US job openings rose along with economic optimism but job openings in the private sector for example rose only 42K after falling nearly 500K in March and nearly 400K in April, so the aggregate 3-month average still showed a steep decline in job openings. Due today, the ADP report is expected to print 163K new private job additions in June.
Elsewhere, headline inflation eased to 2.5% in June but core inflation remained steady at 2.9%, disappointing those who were expecting a decline to 2.8%, while British shops printed zero inflation last month fueling rate cut bets in Britain after the election is over.
In energy, the barrel of US crude advanced to almost $85pb yesterday while nat gas futures extended losses.
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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