Daily global market review

The major indices showed slight upward movement today ahead of a busy week packed with events that could impact the market. The Dow Jones Industrial Average extended its winning streak for the eleventh consecutive session, with many blue-chip stocks performing well.

This week, investors will be closely watching a significant number of earnings releases, with Alphabet and Microsoft reporting after the market closes on Tuesday, followed by Meta Platforms on Wednesday. Additionally, central banks, including the Fed, ECB, and Bank of Japan, will announce policy decisions during the week. Investors have been optimistic recently, partly due to the belief that the Fed may be close to finishing its rate hikes, so their focus will be on the accompanying commentary with the Wednesday FOMC decision.

Key economic data will also be in the spotlight, culminating with the June Personal Income and Spending report on Friday, which includes the Fed's preferred inflation measure (the PCE and core-PCE Price Indexes).

Today's market activity reflected a more cautious approach, evident in the low trading volume and mixed advance-decline line. Advancing issues outpaced declining issues at the NYSE, while declining issues surpassed advancing issues at the Nasdaq.

Nine out of the 11 S&P 500 sectors recorded gains, with Energy, Financials, and Real Estate emerging as the top performers. Energy's strong performance was led by Chevron, which expects Q2 EPS to exceed consensus estimates, and rising oil prices. Conversely, Utilities and Healthcare sectors were among the laggards.

Treasuries initially saw gains after disappointing preliminary July Manufacturing and Services PMI readings from the eurozone, but yields eventually settled close to their highs for the day. The market prepared for a $43 billion 5-year note auction on Tuesday.

Economic data released today showed mixed preliminary July S&P Global US Manufacturing and Services PMIs, indicating an improvement in manufacturing compared to June, while services activity slowed down slightly versus June.

Looking ahead to Tuesday, market participants will focus on economic data related to the housing market and consumer confidence. The week's events, including earnings reports and policy meetings, are anticipated to guide market direction, but there's a lack of strong conviction leading to mixed action in the market.

In the United States, the Dow Jones Industrial Average rose by 183.55 points, representing a 0.52% increase. The S&P 500 also saw a gain of 18.30 points, or 0.40%, while the NASDAQ increased by 26.06 points, or 0.19%. On the other hand, the VIX, a measure of market volatility, climbed by 0.31 points, equivalent to a 2.28% rise. In the US small-cap segment, the Russell 2000 edged up by 5.42 points, or 0.28%.

Moving on to Canada, the S&P/TSX Composite index recorded a modest gain of 34.61 points, or 0.17%, while the S&P/TSX 60 rose by 2.91 points, or 0.24%. In Brazil, the BOVESPA index surged by 1,124.92 points, indicating a 0.94% increase. In Chile, the S&P IPSA rose by 50.18 points, or 0.80%, while in Mexico, the S&P/BMV IPC dropped by 183.25 points, representing a decline of 0.34%.

In Europe, the STOXX Europe 50 slipped by 3.80 points, or 0.10%, and the STOXX Europe 600 saw a small gain of 0.28 points, or 0.06%. In the United Kingdom, the FTSE 100 index increased by 14.86 points, equivalent to a 0.19% rise. Meanwhile, Italy's FTSE MIB saw a gain of 53.33 points, representing a 0.18% increase, while France's CAC 40 declined by 5.46 points, or 0.07%.

In Asia, Japan's Nikkei 225 recorded a strong increase of 396.69 points, or 1.23%, while Hong Kong's Hang Seng index declined significantly by 407.11 points, indicating a 2.13% drop. In China, the Shanghai Composite dropped by 3.58 points, or 0.11%. Australia's S&P/ASX 200 saw a slight decline of 7.50 points, or 0.10%, while South Korea's KOSPI rose by 18.77 points, representing a 0.72% increase. Taiwan's Taiwan SE edged up by 2.91 points, or 0.02%.

Among the indices, the BSE MidCap showed the highest gain, increasing by 0.30% with a rise of 87.57 points. Following closely, the NIFTY Smallcap 100 recorded a gain of 0.37%, representing an increase of 42.20 points, while the Nifty Smallcap 250 rose by 0.24%, with a gain of 26.30 points.

On the other hand, some indices experienced declines during this period. The BSE Sensex recorded the lowest performance with a decline of 0.45%, resulting in a decrease of 299.48 points. The Nifty 100 also experienced a decline of 0.32%, losing 62.15 points, while the S&P BSE-100 showed a decrease of 0.33% with a loss of 66.03 points.

• AMC Entertainment Holdings, Inc. Class A (AMC) saw its price rise to $5.85, gaining $1.45, which represents a notable increase of 32.95%. The trading volume for AMC was 255 million shares.
• Tesla, Inc. (TSLA) experienced an uptick in price, reaching $269.06, with a gain of $9.04, reflecting a 3.48% increase. The total volume of Tesla's shares traded amounted to 137 million.
• NIO Inc. Sponsored ADR Class A (NIO) showed significant growth, with its price climbing to $11.73, marking a rise of $1.15, resulting in a substantial 10.87% increase. The trading volume for NIO stood at 108 million shares.
• Bank of America Corp (BAC) performed well, reaching a price of $32.65, gaining $0.67, equivalent to a positive change of 2.10%. The total volume of Bank of America's shares traded was 65 million.
• Rivian Automotive, Inc. Class A (RIVN) also exhibited growth as its price rose to $25.81, gaining $0.54, indicating a rise of 2.14%. The trading volume for Rivian Automotive was 60 million shares.
• Vinco Ventures, Inc. (BBIG) saw a significant surge, with its price reaching $5.12, increasing by $1.79, resulting in a remarkable growth of 53.75%. The total volume of Vinco Ventures' shares traded amounted to 53 million.
• Nikola Corporation (NKLA), on the other hand, experienced a decline, with its price falling to $2.38, losing $0.12, representing a decrease of 4.80%. The trading volume for Nikola Corporation stood at 51 million shares.
• AT&T Inc. (T) showed moderate growth as its price reached $14.95, gaining $0.19, resulting in a positive change of 1.29%. The total volume of AT&T's shares traded was 49 million.
• Ford Motor Company (F) also exhibited moderate growth, with its price reaching $13.96, gaining $0.18, indicating a rise of 1.31%. The trading volume for Ford Motor Company was 47 million shares.
• Amazon.com, Inc. (AMZN) faced a slight decline, with its price dropping to $128.80, losing $1.20, representing a decrease of 0.92%. The total volume of Amazon.com's shares traded amounted to 46 million.

In the world of cryptocurrencies, the Nasdaq Crypto Index declined by 46.55 points, or 2.67%. Major cryptocurrencies saw declines, with Bitcoin losing 929.00 points, or 3.09%, Ether dropping by 43.60 points, representing a 2.31% decrease, Litecoin falling by 4.40 points, equivalent to a 4.72% drop, and XRP declining by 0.04 points, indicating a 5.08% decrease.

Moving to bonds and rates, there were minimal changes in yields. The 3 Month Treasury yield remained at 5.270%, the 2 Year Treasury yield stayed at 4.885%, the 5 Year Treasury yield held at 4.127%, the 10 Year Treasury yield remained at 3.859%, and the 30 Year Treasury yield stayed at 3.922%.

The Euro to US Dollar exchange rate stands at 1.1063, with a negligible change, indicating a minute decline of 0.03%. The British Pound to US Dollar exchange rate is at 1.2821, showing a marginal increase of +0.00, equivalent to a slight rise of 0.02%. The US Dollar to Canadian Dollar exchange rate remains steady at 1.3171, with no change of +0.00, resulting in 0.00% change. The US Dollar to Swiss Franc exchange rate is currently at 0.8699, displaying a minor increase of +0.00, representing a 0.05% rise. Lastly, the US Dollar to Japanese Yen exchange rate is recorded at 141.5145, indicating a modest increase of +0.04, with a change of 0.03%.

In the commodities overview, several major indices displayed positive movements. The Bloomberg Commodity index (BCOMTR:IND) showed a notable increase of 3.37 points or 1.41%, with a value of 241.39. Similarly, the UBS Bloomberg CMCI index (CMCITR:IND) rose by 24.36 points or 1.60%, reaching 1,550.72. The Reuters/Jefferies CRB index (CRYTR:IND) witnessed a gain of 4.21 points or 1.37%, reaching 312.63. The Rogers International index (RICIGLTR:IND) also experienced substantial growth, rising by 68.34 points or 1.81%, with a value of 3,842.46. Moreover, the S&P GSCI index (SPGSCITR:IND) saw a significant surge of 69.77 points or 2.02%, with a value of 3,531.36.

In the energy sector, specific commodities showed varying degrees of movement. WTI Crude Oil (Nymex) (CL1:COM) had a slight increase of 0.10 points or 0.13%, with a value of $78.84 per barrel for the Sep 2023 contract. On the other hand, Brent Crude (ICE) (CO1:COM) experienced a more significant rise of 1.67 points or 2.06%, reaching $82.74 per barrel for the Sep 2023 contract. RBOB Gasoline (Nymex) (XB1:COM) increased by 0.85 points or 0.29%, with a value of 290.36 USd/gal. for the Aug 2023 contract. In contrast, Natural Gas (Nymex) (NG1:COM) rose slightly by 0.01 points or 0.45%, reaching a value of $2.70 per MMBtu for the Aug 2023 contract. Lastly, Heating Oil (Nymex) (HO1:COM) displayed a minor gain of 0.55 points or 0.20%, with a value of 277.60 USd/gal. for the Aug 2023 contract.

Additionally, the precious and industrial metals segment experienced mixed movements. Gold (Comex) (GC1:COM) declined by 5.90 points or 0.29%, reaching a value of $1,995.10 per troy ounce for the Dec 2023 contract. Conversely, Gold Spot (XAUUSD:CUR) showed a small increase of 0.40 points or 0.02%, with a value of $1,955.13 per troy ounce. Silver (Comex) (SI1:COM) recorded a slight decrease of 0.08 points or 0.33%, reaching $24.50 per troy ounce for the Sep 2023 contract. Copper (Comex) (HG1:COM) also experienced a minor decline of 1.00 points or 0.26%, with a value of 384.55 USd/lb. for the Sep 2023 contract. Finally, Platinum Spot (XPTUSD:CUR) remained steady with no change at all, maintaining a value of $961.15 per troy ounce.

In the agriculture sector, several commodities displayed significant movements. Corn (CBOT) (C 1:COM) surged by 32.00 points or 5.97%, reaching a value of 568.25 USd/bu. for the Dec 2023 contract. Wheat (CBOT) (W 1:COM) also experienced a substantial increase of 60.00 points or 8.60%, reaching 757.50 USd/bu. for the Sep 2023 contract. Cocoa (ICE) (CC1:COM) showed a minor gain of 2.00 points or 0.06%, with a value of $3,417.00 per metric ton for the Sep 2023 contract. Cotton #2 (ICE) (CT1:COM) recorded a moderate increase of 0.68 points or 0.80%, reaching 85.16 USd/lb. for the Dec 2023 contract. Live Cattle (CME) (LC1:COM) experienced a small decline of 1.60 points or 0.88%, with a value of 180.30 USd/lb. for the Oct 2023 contract.

On Tuesday, July 25, 2023, there are several economic events scheduled for release. At 9:00 AM ET, the Case-Shiller Home Price Index will be published, including the 20-City Unadjusted - Y/Y, 20-City Adjusted - M/M, and 20-City Unadjusted - M/M data points. This release is expected to have a medium impact on the markets. Simultaneously, the FHFA House Price Index will be revealed, featuring Month over Month and Year over Year data, with a low impact on the market. At 10:00 AM ET, the Consumer Confidence Index will be announced, including the M/M % Change and M/M Change figures, with a high impact on market sentiment. Additionally, the Richmond Fed Manufacturing Index will be reported at the same time, having a low impact. Lastly, at 1:00 PM ET, the Money Supply data, specifically the M2 Level, M/M $Chg, and M/M %Chg, will be released, with a low impact on the market. It is important to note that the actual values for these economic indicators will only be available on the specified date and time of their release.

1. Equities and Market Sentiment: Stocks are edging higher, driven by positive market sentiment. The Dow Jones Industrial Average registered its eleventh consecutive gain, indicating ongoing investor optimism. However, global markets are experiencing mixed performances, with Japanese equities showing strength, while European stocks are slightly lower. The energy and financial sectors are leading the gains, suggesting a preference for riskier assets. On the other hand, defensive sectors like utilities and health care are in the red, reflecting a more cautious approach among investors.
2. Interest Rates and Fed Announcement: Interest rates are moving higher, with the 10-year Government of Canada bond yield at 3.5% and the 10-year U.S. Treasury yield near 3.9%. Market participants are closely monitoring the upcoming U.S. Federal Reserve rate announcement. A quarter-point (0.25%) hike is expected, but the focus will be on the policymakers' outlook for future rate moves. The possibility of this being the last hike in the current cycle is being considered, contingent on sustained progress with falling inflation. Any deviations in consumer prices from the descending trend may lead to further rate hikes and market volatility.
3. Economic Data: The economic data paints a mixed picture. Advanced economy PMI reports reveal divergent trends in manufacturing and services activity. Manufacturing remains in contractionary territory, indicating a slowdown in goods spending. Conversely, services spending shows ongoing demand from consumers, but July's new service sector orders grew at the slowest pace in six months, signaling emerging fatigue. Household spending may slow in the latter half of the year, but the overall economy is supported by a healthy labor market and its impact on consumer spending.