Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
ХУВьЦАА
Crude oil prices are plummeting this morning as reports emerge that the United States has paused strikes on Iran after a two-week long string of attacks. The US ambassador to the UN has claimed that diplomatic efforts ramped up over the last few days, while President Trump has signalled a willingness to allow talks to take root. The development has raised hopes of a potential peace in the Middle East, although markets have been here many times before over the past few months and are understandably sceptical. Brent Crude shot down immediately this morning, falling to $91 per barrel, while WTI contracts sank down to $84. Even Murban Crude futures have fallen back below $100, crumbling 10% upon hearing of the respite in hostilities. A predictable gap higher graced the charts for precious metals this morning, with gold rising to $4,090 per ounce and silver exploring highs of $60. Cryptocurrencies are likewise responding positively, with Bitcoin reclaiming $65,000 per coin and a number of the major alts climbing to prices not seen since early June.
On the face of it, last week’s treatment of Alphabet (GOOG) seems a little harsh. According to its latest earnings report, revenue and profit for the company both beat expectations, cloud growth was on point, and yet, by the end of the week, shares were down by almost 8%. As poor as the performance was, investors in Google could at least console themselves with the even worse price action over at Tesla (TSLA), which fell almost 18% on the week after failing to beat its own respective expectations. Last week also saw the publication of the latest earnings card from Intel (INTC), which posted blowout second-quarter earnings after the bell on Thursday. As with Google and Tesla however, the semiconductor giant plummeted during the following session, losing the better part of 8% last Friday. In all three cases the selloff can be explained by the worrying amount of capital being spent on various infrastructure investments. Markets are not impressed with the huge figures being thrown around and are being increasingly critical of big tech companies’ spending habits. The back-to-back losses do not bode well for the those scheduled to report over the next few days. The earnings calendar kicks into overdrive this week, with a number of tech titans ready to publish, including newly listed SK Hynix and no fewer than four of the magnificent seven.
As mentioned above, earnings season kicks into high gear this week, as huge names line up to be scrutinised. Coca-Cola (KO) reports before market open on Tuesday, while Visa (V) will report after market close later in the session. Concurrently, SK Hynix will release its first earnings report as a US-listed public company early on Wednesday morning South Korean time. Microsoft (MSFT) and Meta Platforms (META) both publish late on Wednesday evening, while Apple (AAPL) and Amazon (AMZN) follow on Thursday, as do Mastercard (MA) and Shell (SHEL). The oil companies continue on Friday with Exxon Mobil (XOM) and Chevron (CVX).
The economic calendar meanwhile has a few notable events of its own to offer. US durable good orders are worth paying attention to later today, as are tomorrow’s ADP employment figures. On Wednesday, all eyes will be on the Fed, which is scheduled to deliver one of the more unpredictable verdicts in recent times. A rate hold was almost a foregone conclusion at the end of last week, but interest rate traders are no longer so sure of themselves. The Federal Reserve, under the stewardship of Kevin Warsh, has been much more tight-lipped as of late, leaving markets with an increasing amount of guesswork to do. As it stands there is a rough 65-35 split in favour of a rate hold; a delicate balance that could tilt significantly before the due date. Thursday is no less busy, with US and European GDP growth figures, an interest rate decision from the Bank of England, as well as the PCE Price Index report for June. The Bank of Japan will chime in with a rate decision of its own on Friday, followed by the latest on European inflation data later in the day. A lot to keep an eye on this week.
About the Author
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
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Дериватив болон хөшүүрэгтэй бүтээгдэхүүнээр арилжаа хийх нь өндөр эрсдэлтэй бөгөөд таны анхны хөрөнгө оруулалтаас давсан алдагдал хүлээх эрсдэлтэй. Арилжаа хийхээсээ өмнө манай Нөхцөл, болзол (T&C) болон Бүтээгдэхүүний мэдээллийн баримт бичиг (PDS)-ийг уншина уу.
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