U.S. Indices closed higher while Treasuries were hit on Wednesday, with focus on trade updates. The US announced a trade deal with Japan where Japan will pay a 15% tariff on imports to the US, down from the previous 25%, while focus has also been on a touted EU deal, which also suggests a 15% tariff rate, albeit this is yet to be officially confirmed. The EU reports sent European equity futures soaring while EZ debt saw chunky selling. The Euro was bid versus the softer Dollar, albeit the cyclical currencies outperformed on the risk environment, while havens underperformed, aside from the Japanese Yen, given the trade deal announcement. Gold prices were sold amid haven outflows amid reduced trade uncertainty, while the higher US yields also hit the precious metal. Crude prices settled flat with downside in the morning, largely pared by settlement, while the DoE data saw a larger crude stock draw than expected, with distillates posting a surprise build with gasoline seeing a larger draw than forecast. In Fixed Income, the US 20-Year bond auction was strong relative to recent auctions, sparking short-lived upside as attention shifted back to trade. Focus remains on confirmation of the EU tariff rate, but also on US/China talks next week. On earnings, healthcare names (ISRG, BSX, TMO) performed well, but tech names (TXN, SAP) disappointed. Existing home sales fell 2.7% in June to 3.93 million from 4.04 million, and beneath the expected 4.0 million. Inventory of homes for sale was 1.53 million units or 4.7 months’ worth (prev. 1.54 million units, 4.6months’ worth), with the national median home price rising to a record high USD 435,300, +2% Y/Y. Within the report, NAR Chief Economist Yun said, “Multiple years of undersupply are driving the record high home price, and home construction continues to lag population growth.” As such, Yun adds this is holding back first-time home buyers from entering the market, and more supply is required to raise the share of first-time homebuyers in the coming years even though some markets appear to have a temporary oversupply at the moment. Elsewhere, both Oil and Gold closed lower on Wednesday by 1.08% and 1.25% respectively.
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For anyone following my Platinum Service it was flat yesterday and is still ahead by 3235 points for July 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 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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