U.S. Indices ultimately settled lower to start the week in a day of quiet newsflow, with attention turning to US CPI on Tuesday. Highlights came from over the weekend, where US President Trump approved export licenses for Nvidia (NVDA) and AMD (AMD) to sell chips to China, albeit not tier 1 chips, but in return for 15% of revenue to be paid back to the US government, seeing the stocks open lower before paring the losses during trade. Sectors were mixed, Consumer Discretionary, Staples and Health Care outperformed, while Energy, Tech and Real Estate lagged. T-Notes flattened on the day with 10 Year Futures settling relatively flat as all eyes turn to US CPI on Tuesday (preview below). In FX, the Dollar outperformed while the Swiss Franc lagged as the currency continues to be hit by the trade fallout with the US. On trade, the White House confirmed CNBC reports that an Executive Order has been signed to extend the trade truce with China by 90 days, as was widely touted ahead of the August 12th deadline. Crude prices settled flat with eyes turning to the Trump/Putin meeting on Friday. Meanwhile, spot gold prices saw notable weakness before paring off lows after US President Trump announced that Gold would not be subject to tariffs. Lithium surged yesterday after CATL suspended production at a mine in China after a permit expired on Saturday, supporting lithium miners in the US. July CPI is expected to rise by +0.2% M/M at the headline level (prev. +0.3%), with the annual rate seen rising to 2.8% Y/Y from 2.7%. The core rate of inflation is expected to rise by +0.3% M/M (prev. +0.2%), with the annual rate of core inflation expected to rise to 3.0% Y/Y from 2.9%. Wells Fargo says that the data will bring further signs of higher tariffs pushing up prices. “It is still early in the price adjustment process to see how higher import taxes will ultimately be distributed between the end-customer, domestic sellers and foreign exporters,” the bank writes, “at the same time, growing consumer fatigue is making it more difficult to raise prices in general.” Looking ahead, Wells Fargo expects inflation to pick up, but not ratchet higher, in H2 of this year, and sees both the core CPI and core PCE deflators returning to around 3% in Q4. The June Fed median projections saw headline PCE at 3.0% by year-end with core PCE at 3.1%. Elsewhere, Oil closed higher by 0.25% while Gold was weak ending Monday’s session with a loss of 1.3%
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For anyone following my Platinum Service it made 59 points yesterday and is now ahead by 1137 points for August 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 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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