U.S. Indexes ended Tuesday’s session with a downside bias, although the Russell 2000 outperformed and saw gains. Sectors were also mixed as Utilities and Energy sat at the top of the pile, with the latter supported by rising oil prices, albeit in very choppy trade. Ultimately, the energy space was buoyed after reports that a Saudi ship was targeted near Bab al-Mandab by Yemen’s Houthis. Back to sectors, Communication Services and Consumer Discretionary were the laggards, as the former was hit by Alphabet weakness. Overall, on Tuesday, newsflow, aside from geopolitics, was sparse as desks await US CPI on Wednesday, which will be key in shaping expectations for the September FOMC meeting. The weak July NFP report prompted participants to pare rate hike expectations, although the subsequent rebound in crude prices has helped push September pricing back towards a coin toss. The Dollar was little changed against G10 peers, with both the Canadian Dollar and Australian Dollar eking out slight gains versus. the Greenback. The CAD was supported by oil prices, and AUD by a hawkish tilt from the RBA Governor after the central bank kept rates unchanged at 4.35%, as expected. Treasuries meandered and saw little reaction post 3-year auction, while precious metals were in the red with Spot Silver noticing greater losses. Existing Home Sales fell 1.7% in July to 4.06 million, marginally above the 4.05 million forecast. Meanwhile, the inventory of homes for sale was unchanged at 4.6 months’ worth. NAR Chief Economist Lawrence Yun stated that “Home sales have been remarkably stable, even amid the rising mortgage rate environment of the past few months,”. Yun noted that “Year-to-date sales are up 2.4% and there is no doubt that the housing market would be thriving if average mortgage rates were to return near 6%.” However, Pantheon Macroeconomics notes the further dip leaves them in the middle of the depressed range it’s been stuck in for three years. The consultancy highlights that “Near-term leading indicators provide no sign that sales are likely to pick up in the months ahead, with mortgage purchase applications grinding lower and mortgage rates following long-dated Treasury yields higher.” Fed speak had little impact on price action. Goolsbee said labour market indicators point to stability rather than strong performance but stressed that inflation remains the Fed’s biggest problem. Meanwhile, Atlanta Fed interim President Venable said inflation remains too high, while describing the labour market as broadly stable. Elsewhere, Oil closed higher by a further 1.2% while Gold ended the day with a loss of 0.7%.
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For anyone following my Platinum Service it made 720 points yesterday and is now ahead by 950 points for August after closing July with a gain of 8031 points, after ending June with a new record of 10527 points after ending May with a loss of 1104 points, having ended April with a gain of 1730 points, after ending March with a massive gain of 9002 points, having closed February with a strong gain of 5482 points after ending January with a gain of 4757 points, having closed December with a gain of 2599 points, after ending the month of November with a gain of 4542 points, after ending October with a nice gain of 5110 points after closing September with a gain of 3774 points while ending August with a gain of 3362 points after closing July with a gain of 3753 points after closing June with a gain of 3530 points, having closed May with a gain of 3606 points, after closing April with a gain of 7685 points after closing March with a gain of 2254 points while closing February with a gain of 4180 points. January ended with a gain of 2768 points while 1997 points were gained in December. October ended with a gain of 2179 points, after closing September with a gain of 4402 points, following a loss of 301 points in August. July gained 1908 points while June saw a gain of 2074 points. The Platinum Service made a previous record 9619 points in October 2022. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 2300 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
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