Investors still focus on the quarterly earnings season in Europe and the United States, as well as the COVID-19 situation

Meanwhile, the dollar index jumped yesterday due to the Fed’s hint of an early cutting of the QE program. A lot will depend on Friday’s non-farm payrolls data. ADP private sector employment change was 330,000 in July. It’s below expectations but still an improvement for the labor market.

According to the US Energy Information Administration (EIA), crude oil inventories unexpectedly increased by 3.6 million barrels last week. The situation in the oil market is becoming uncertain now. On the one hand, OPEC+ countries are increasing oil production now. On the other hand, the spread of Delta strain is putting pressure on oil price growth. The growing tension between Iran and world leader countries over the drone attacks on oil tankers has also added to the uncertainty. Iran denies any involvement. But global banks still expect oil prices to rise to $85 per barrel by the fourth quarter since the oil demand is strongly ahead of the growth of supply.

Asian stock indices were mostly higher yesterday. The broadest index of Asia-Pacific stocks outside of Japan, the MSCI, increased by 0.22%, and Japan’s Nikkei added 0.32%. Australia’s index added 0.18%, while China’s blue-chip CSI 300 decreased by 0.28%, and Hong Kong’s index fell by 0.45%. In China, mass testing of the population continues after the spread of the Delta strain made many businesses close and also forced Beijing to close routes to 20 provinces in China. New Zealand’s unemployment rate fell to its lowest level in a year (4%), the number of unemployed decreased by 12.4%, the largest quarterly decline since the first survey in 1986.

S&P 500 (F) 4,402.66 -20.49 (-0.46%)

Dow Jones 34,792.67 -323.73 (-0.92%)

DAX 15,692.13 +137.05 (+0.88%)

FTSE 100 7,123.86 +18.14 (+0.26%)

USD Index 92.28 +0.19 (+0.21%)

News feed for: 2023.07.04

UK Construction PMI (m/m) at 11:30 (GMT+3);
UK BoE Interest Rate Decision (m/m) at 14:00 (GMT+3);
UK BoE Monetary Policy Report at 14:00 (GMT+3);
US Initial Jobless Claims at 15:30 (GMT+3);
US Natural Gas Storage (w/w) at 17:30 (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.