Good corporate reporting season in the US and Europe compensates for the spread of the Delta strain
Oil prices dropped on Friday and continued to decline on Monday as the rapid spread of a Delta strain began to have a negative impact on the Chinese economy. There is an increase in the activity of shale companies in the US. The number of existing oil drilling rigs in the United States increased by 10 units last week.
Gold increased on Friday as the dollar index declined and the US Treasury yields fell. As long as the Fed keeps its monetary policy soft, gold and silver prices will rise slowly. But any rumors about the possible reduction of the QE program will cause a wave of sales.
The Asian stock market is still under pressure. In China, the growth of industrial production and retail sales slowed in July, indicating the negative impact of the Delta strain on business activity. In countries such as Thailand, Vietnam, and the Philippines, the number of new coronavirus cases is near record levels. Japan’s GDP increased by 0.3% q/q, and industrial production increased by 0.3% in the last month. But the recovery is much weaker than in other advanced economies. Many analysts expect growth to remain modest in the current quarter, and there could be a slowdown in the third quarter because of the Olympic games.
S&P 500 (F) 4,468.00 +7.17 (+0.16%)
Dow Jones 35,515.38 +15.53 (+0.04%)
DAX 15,977.44 +39.93 (+0.25%)
FTSE 100 7,218.71 +25.48 (+0.35%)
USD Index 92.52 -0.51 (-0.55%)
News feed for: 2023.07.04
- Japan GDP (q/q) at 02:50 (GMT+3);
- China Industrial Production (m/m) at 05:00 (GMT+3);
- Japan Industrial Production (m/m) at 07:30 (GMT+3).
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
