Will the Wall Street Wobble continue? What a week we have ahead, we hear from the Fed, BoE and BoJ, there are results from Microsoft, Apple, Amazon, and Facebook, is the AI Trade over? And then to cap off the week we have NFPs and in amongst all this month end activity.
Lets start with the Central Bankers, the Fed is expected to be dovish, as is the BoE and the BoJ possibly hawkish. Markets are currently pricing in a near-certainty that the Fed will begin cutting interest rates at its September meeting, and expect 66 basis points in total cuts by the end of the year. How will all this affect the markets? The S&P 500 is still only about 5% below its all-time high and is up nearly 14% this year, some investors worry that Wall Street may have become too optimistic about earnings growth, leaving stocks vulnerable if companies are unable to meet expectations in coming months, so these results will be closely watched.
Overnight, Bitcoin rose 2.2% to $69,470.09, Ether rose 2.8% to $3,349.18, the yield on 10-year Treasuries declined two basis points to 4.18%, Spot gold rose 0.3% to $2,393.67 an ounce, West Texas Intermediate crude was little changed at $78.40. USDJPY is at 153.30, Cable at 1.2875 and EUUSD at 1.0860. As for today we have earnings from McDonald’s and Heineken. Domestically we hear from Chancellor Rachel Reeves and her plan to cut Infrastructure expenditure.
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