Global Economic Daily - 16/07/2024
Straits Financial Group
Leading Asian Derivatives Brokerage Providing Bespoke Solutions to Global Clients
NEWS AND MARKET COMMENTARY
Global Equities
Global Fixed Income
Currencies
Energy
Metals
Global Politics/News
Relevant Government Reports
领英推荐
Financial
Closing Commentary
?
Quote of the Day: He who is brave is free. – Lucius Annaeus Seneca
?
Equities: Stocks started the week off strong after an eventful weekend. The?Dow Jones Industrial Average?advanced on Monday as investors bet the?unsuccessful assassination attempt?on former President Donald Trump will lead to big gains for the Republican presidential candidate and the GOP at the polls in November. Friendlier fiscal policies ahead were seen as further spurring a broadening out of the bull market that started to take shape last week. Small-cap shares and banks climbed on Monday. The blue-chip Dow jumped 210.82 points to 40,211.72. The?S&P 500?added 15.87 points to 5,631.22. Both touched new intraday highs in the session, while the former also saw a record close. The?Nasdaq 100?rose 55.38 points to 20,386.88. Beyond earnings, investors parsed?comments?from Federal Reserve Chair Jerome Powell, who said the central bank?wouldn’t wait?until inflation was at its goal of 2% before lowering interest rates. He also said a hard landing scenario was unlikely for the economy. TECHNICAL OUTLOOK – Both the Dow and S&P is above the 14, 21 day moving average.
?
Crude Oil: Oil prices eased on Monday as worries about demand in top importer China offset supportive U.S. economic news, OPEC supply restraint and ongoing Middle East tensions. China's economy?grew much slower than expected in the second quarter as a protracted property downturn and job insecurity knocked the wind out of a fragile recovery, keeping alive expectations Beijing will need to unleash even more stimulus. China's refinery output fell 3.7% in June from a year earlier，down for a third month on planned maintenance, while lower processing margins and lacklustre fuel demand pushed independent plants to cut output. In the Middle East, geopolitical tensions continued to support oil prices, though ample spare capacity held by Saudi Arabia and OPEC members has?limited?price support, analysts say. In the?Red Sea, two vessels came under attack off Yemen's port city of Hodeidah, with one ship reporting it had sustained some damage. There was no immediate claim of responsibility for the attack. But since November, Iran-backed Houthi militants have launched drone and missile strikes in shipping lanes in the Red Sea and Gulf of Aden. The group says these actions are in solidarity with Palestinians affected by Israel's war in Gaza. In Iraq, the oil ministry said the OPEC member will compensate for overproduction since the beginning of 2024. In?Russia, Deputy Prime Minister Alexander Novak said the global oil market will be balanced in the second half of the year and thereafter, thanks to the OPEC deal on production supply. OPEC has implemented a series of output cuts since late 2022 to support the market. The group agreed on June 2 to extend the latest cut of 2.2 million barrels per day until the end of September and gradually phase it out from October. Russia's Novak also said the country might decide to reinstate a?gasoline export ban?from August should there be supply shortages on the domestic fuel market. TECHNICAL OUTLOOK – The Crude is above the 14, 21 day moving average.
?
Metals: Gold prices are solidly higher and hit a seven-week high in midday U.S. trading Monday. Silver prices are near steady. Overall bullish technical charts that have become even friendlier lately are prompting more speculators to the long side of the yellow metal. Silver is also bullish but that market took a pause today. Technically, August gold bulls have the solid overall near-term technical advantage. A fledgling price uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the May contract high of $2,477.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $2,304.20. September silver futures bulls have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $33.05. The next downside price objective for the bears is closing prices below solid support at the June low of $28.90. TECHNICAL OUTLOOK – Gold and silver are above the 14, 21 day moving average.
?
DISCLAIMER: The Information and data contained herein was obtained from sources deemed reliable. The accuracy and completeness are not guaranteed
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
Visit Us At https://www.straitsfinancial.com/
Singapore | United States | Indonesia | China | Dubai
Straits Financial, 9 Temasek Boulevard #28-02 Suntec Tower Two Singapore 038989, Singapore, Singapore, +65 6672 9668
Globalization is definitely a rollercoaster! Staying on top of trends across different markets can be tough. At our Company, we help startups and B2B businesses develop data-driven marketing strategies for global markets. What specific regions are you interested in? We might have some helpful resources on our LinkedIn page you can check out!