This week, financial markets are navigating through a complex landscape shaped by recent economic reports and geopolitical developments.
Gold prices have rebounded above $2,500, buoyed by expectations of potential Federal Reserve rate cuts and ongoing geopolitical tensions, despite some pressure from a stronger US Dollar. In the forex market, the EUR/USD pair has dipped below 1.1100 following softer inflation data from Germany, highlighting the impact of regional economic indicators on currency movements.
As traders await key US GDP data and central bank speeches, these developments set the stage for possible shifts in market dynamics in the days ahead.
*It is important to remember to assess your financial situation and risk tolerance, before engaging in copy trading. Past performance and forecast are not reliable indicators of future results.
Tech and media stocks lift European shares
This week, European shares edged higher, driven by gains in media and technology sectors. The pan-European STOXX 600 index rose by 0.2%, with media stocks climbing 0.5%, buoyed by a 2.3% increase in Universal Music Group.
The tech sector also saw a 0.3% rise, despite Nvidia's quarterly results falling short of global expectations. Investors are now awaiting data on European economic sentiment and German consumer prices, along with insights from European Central Bank officials.
Nvidia exceeds earnings expectations, but investors remain unimpressed
Nvidia once again outperformed Wall Street's expectations, reporting over $30 billion in sales for its fiscal second quarter — a remarkable 122% increase from the previous year and surpassing the anticipated $28.7 billion. Profits also significantly exceeded forecasts, reaching $16.6 billion compared to the projected $15 billion.
The company provided a slightly better-than-expected sales outlook for the current quarter, which should typically boost investor confidence.
However, despite these strong results and positive guidance, Nvidia's shares fell by up to 5% in after-hours trading, signaling that even stellar earnings may not be sufficient to impress investors accustomed to extraordinary growth.
Gold price gains momentum as traders await US GDP Data
Gold prices have regained momentum, bouncing back above $2,500. This rebound is driven by rising expectations of a Federal Reserve rate cut and ongoing geopolitical tensions, particularly in the Middle East. Lower interest rates typically boost gold demand by reducing the opportunity cost of holding the non-yielding metal.
However, a stronger US Dollar could limit gold's gains, as it makes the metal more expensive for international buyers. As traders anticipate upcoming US GDP data, these mixed factors are influencing the gold market's trajectory.
EUR/USD falls below 1.1100 after regional German inflation data
The EUR/USD pair has slipped below the 1.1100 mark for the first time in over a week, facing bearish pressure during the European session.
This decline follows weaker-than-expected inflation data from German states, which has dampened the Euro. Market attention now shifts to upcoming US economic data releases.
The EUR/USD is anticipated to test its 2024 high of 1.1201, set on August 26, with further resistance expected at the 2023 peak of 1.1275 from July 18 and the 1.1300 level.
This concludes our weekly recap. Have a great weekend and see you next week! 👋
IMPORTANT NOTICE: Any news, opinions, research, analyses, prices or other information contained in this article are provided as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and therefore, it is not subject to any prohibition on dealing ahead of dissemination. Past performance is not an indication of possible future performance. Any action you take upon the information in this article is strictly at your own risk, and we will not be liable for any losses and damages in connection with the use of this article.
RISK WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail client investors lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
NAGA is a trademark of The NAGA Group AG, a German based FinTech company publicly listed on the Frankfurt Stock Exchange | WKN: A161NR | ISIN: DE000A161NR7.
The website is operated by NAGA Capital Ltd which is authorised and regulated by the Financial Services Authority Seychelles (FSA) under licence No. SD026. The registered address of CT House, Office 9A, 2nd Floor, Providence, Mahe, Seychelles. Tel: +248 4373121
The group also includes NAGA Global (CY) Ltd, with registered address at Nikokreontos 2, NICE DREAM, 6th floor, Flat/Office 601, 1066, Nicosia, Cyprus. NAGA Global (CY) Ltd is wholly owned by The NAGA Group AG.
RISK WARNING: Derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how derivatives work and whether you can afford to take the high risk of losing your money. This is not investment advice. Trading with NAGA Trader by following and/or copying or replicating the trades of other traders involves high levels of risks, even when following and/or copying or replicating the Lead Traders. Such risks include the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Before making an investment decision, you should rely on your own assessment of the person making the trading decisions and the terms of all the legal documentation.
Restricted countries: NAGA Capital Ltd does not provide services for the residents of certain countries, such as Afghanistan, Albania, American Samoa, Anguilla, Australia, Austria, Barbados, Belarus, Belgium, Bermuda, British Indian Ocean Territory, Bulgaria, Burkina Faso, Canada, Cayman Islands, Central African Republic, Christmas Island, Cocos (Keeling) Islands, Congo, The Democratic Republic of the, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Falkland Islands (Malvinas), Finland, France, Germany, Gibraltar, Greece, Guam, Haiti, Heard Island and McDonald Islands, Hungary, Iceland, Iran, Islamic Republic of, Ireland, Isle of Man, Israel, Italy, Jamaica, Japan, Jersey, Korea, Democratic People's Republic of, Latvia, Libyan Arab Jamahiriya, Liechtenstein, Lithuania, Luxembourg, Mali, Malta, Montserrat, Mozambique, Myanmar, Netherlands, New Zealand, Norfolk Island, Norway, Palestinian Territory, Occupied, Pitcairn, Poland, Portugal, Romania, Russian Federation, Saint Helena, Ascension and Tristan Da Cunha, San Marino, Senegal, Serbia, Slovakia, Slovenia, Somalia, South Georgia and the South Sandwich Islands, South Sudan, Spain, Sri Lanka, Sweden, Switzerland, Syrian Arab Republic, Trinidad and Tobago, Tunisia, Turks and Caicos Islands, Uganda, Ukraine, United Kingdom and any other countries where the citizens have British proof of identity (i.e. British Virgin Island, Gibraltar, Isle of Man etc.), United States, U.S. Minor Islands, Vanuatu, Virgin Islands, British, Virgin Islands, U.S., Yemen, and Zimbabwe.