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.
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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.
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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.
Trading involves significant risk of loss.
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.
Trading involves significant risk of loss.
This concludes our weekly recap. Have a great weekend and see you next week! 👋
