July 25 2024: On Thursday, five of China’s major state-owned banks cut deposit rates to alleviate pressure on their record-low margins following this week’s unexpected reduction in lending benchmarks aimed at boosting the sluggish economy. Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (OTC ), China Construction Bank (OTC ), Bank of China, and Bank of Communications reduced deposit rates by 5 to 20 basis points, as per statements on their websites. This marks the first broad reduction in deposit rates by Chinese banks since December last year. There were three cuts in 2023, following similar reductions in…
Author: editor2
July 25 2024: The yen climbed to its strongest level against the dollar in 2-1/2 months on Thursday and reached multi-month highs against other currencies ahead of next week’s Bank of Japan (BOJ) meeting, as yen carry trades were unwound and market sentiment deteriorated. The dollar, euro, sterling, and other major currencies dropped more than 1% against the yen in mid-morning Asian trade before recovering some losses. Analysts attributed the yen’s sharp rise to the abandonment of short yen positions ahead of the BOJ’s July meeting, where a potential rate hike is being considered. Sources indicated that the BOJ is likely…
July 25 2024: Gold prices declined during Asian trade on Thursday, experiencing minimal safe haven demand despite heightened risk-off sentiment. Traders favored the Japanese yen, which saw a sharp appreciation. Meanwhile, the broader commodity market faced significant downturns, with copper prices hitting a near four-month low amid ongoing concerns over demand from top importer China. Gold Prices Retreat Amid Yen’s Strength and Rate Hike Speculation: Spot gold slid 0.9% to $2,376.11 an ounce. Gold futures for August delivery tumbled 1.7% to $2,375.40 an ounce by 00:52 ET (04:52 GMT). The Japanese yen’s USD/JPY pair dropped to a two-month low on Thursday,…
July 25 2024: Bitcoin’s price fell on Thursday, continuing a week-long downturn as broader risk-off sentiment kept traders cautious about cryptocurrencies. Speculation over the U.S. presidential election also contributed to the decline. Ether, the world’s second-largest cryptocurrency, also faced losses as traders largely ignored the recent launch of spot exchange-traded funds (ETFs) in U.S. markets. These ETFs attracted significantly less capital compared to spot Bitcoin ETFs launched earlier this year. A sharp drop in Wall Street indexes on Wednesday, driven by a sell-off in major technology stocks following disappointing second-quarter earnings, further impacted market sentiment. Bitcoin Drops Amid Political Speculation and…
July 25 2024: Global stocks declined on Wednesday, driven by disappointing earnings from Tesla (NASDAQ: TSLA) and European luxury brands. Meanwhile, oil prices rose after trading near six-week lows due to concerns over weak global demand. The U.S. dollar edged lower as traders anticipated an inflation reading on Friday and a Federal Reserve meeting next week. The yen climbed to a seven-week high ahead of a central bank meeting. Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions in Boston, commented, “I think the big story is clearly the earnings front and you’ve kind of seen reports all over the map,…
July 24 2024: Bank of England Chief Economist Huw Pill stated earlier this month that it remains uncertain whether the BoE will cut interest rates on August 1, despite inflation returning to its 2% target, due to “uncomfortable strength” in underlying price pressures. In June, the BoE’s Monetary Policy Committee (MPC) voted 7-2 to maintain interest rates at a 16-year high of 5.25%. Deputy Governor Dave Ramsden and external MPC member Swati Dhingra supported a cut to 5%. Financial markets predict a roughly 45% chance that the BoE will lower rates to 5% at its next meeting, and anticipate just under…
July 24 2024: The U.S. dollar edged higher on Wednesday, while the euro fell after the release of disappointing eurozone activity data, which pointed to further European Central Bank (ECB) rate cuts ahead. At 05:25 ET (09:25 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, rose 0.1% to 104.232, extending an overnight rebound. Dollar Benefits from Political UncertaintyThe dollar has benefited from volatility surrounding the U.S. political situation. Vice President Kamala Harris has garnered strong support from the Democratic Party after her endorsement as its presidential nominee by President Joe Biden. A Reuters/Ipsos poll…
July 24 2024: Oil prices rose on Wednesday, recovering from recent losses after industry data showed a decline in U.S. inventories, suggesting strong demand from the world’s largest consumer. At 08:30 ET (12:30 GMT), Brent oil futures rose 1.2% to $77.89 a barrel, while West Texas Intermediate crude futures climbed 1% to $81.80 a barrel. US Inventories Unexpectedly DeclineData from the American Petroleum Institute (API) showed U.S. oil inventories shrank by 3.9 million barrels last week, compared with expectations for a build of 0.7 million barrels. The API data, which usually signals a similar trend from official inventory data, indicated inventories…
July 24 2024: Bitcoin’s price fell on Wednesday, extending its losses for the week due to weak risk appetite amid uncertainty over the U.S. political outlook. The launch of spot exchange-traded funds (ETFs) tracking Ether also failed to boost the sector, with Ether prices declining on Tuesday and trading flat on Wednesday. Bitcoin dropped 1.7% in the past 24 hours to $65,793.5 by 01:56 ET (05:56 GMT). The token had rebounded to $69,000 over the weekend but is now reversing course. Bitcoin Faces Pressure from Political Uncertainty and Weak Risk AppetiteBitcoin is under pressure from increased uncertainty surrounding the U.S. presidential…
July 24 2024: Tesla’s fiscal second-quarter earnings matched earlier projections, leading to anticipated results. However, the main focus was the auto gross margin miss, which, alongside lower-than-expected EPS, caused a premarket drop in Tesla’s shares on Wednesday. Analysts were looking for more insight into Full Self-Driving (FSD) adoption rates following recent price reductions, but management only mentioned a “meaningful increase.” Despite the mixed outcomes and subsequent decline, Canaccord Genuity analysts believe the “major catalysts” for Tesla (NASDAQ) stock are still ahead. The first of these will be on October 10, the rescheduled date for Tesla’s Robotaxi Day. Analysts expect the event…
