U.S. Indexes saw strength on Tuesday, as the tech-heavy NASDAQ 100 outperformed, seeing the Tech sector sit atop of the breakdown, buoyed by numerous bullish stories, ahead of GOOGL and TSLA earnings on Wednesday; 1) Taiwan export orders in June +59.4% Y/Y (exp. 49.5%); 2) TSMC set to raise prices for both advanced and mature chip production services by up to 10% in 2027; 3) NVDA disclosed a 9.3% passive stake in NBIS; 4) HUT and IREN on gains after recent order news; 5) NVDA said chips are on schedule for use in AI data centers. Once again, US/Iran headlines dominated the tape, as US/Iran tensions continue to escalate with no signs of abating, which saw energy benchmarks see strength of USD 2/bbl; some of the more notable reports were that President Trump said they will hit Pickaxe Mountain very soon, and hard, while the Yemeni Houthis have warned shipping firms to avoid loading or discharging at Saudi ports. Sectors close predominantly in the green, with only Consumer Staples and Communications in the red, with Energy the next best performing sector and supported by the aforementioned stories. The Dollar is broadly gaining versus G10 FX peers, with safe-havens lagging and USD/JPY hitting a fresh YTD high: the Australian Dollar the only one eking out marginal gains. The Pound was pressured as Prime Minster Burnham announced his first measures, essentially an unfunded removal of VAT on electricity bills. Treasuries bear flattened as rising oil prices reinforced expectations for further Fed tightening, in a week that lacks key US data or speakers, aside from earnings. Precious metals sit in the green. On the data front, the only notable US release was the ADP Employment Change, which showed 16.5k jobs were added in July, easing from the prior 19.3k and pointing to a fourth consecutive slowdown in hiring. Elsewhere, the Philadelphia Fed Non-Manufacturing Business Outlook Survey improved on the month, although neither release had a meaningful impact on Treasury trading. Instead, markets continued to look through the second-tier data, with price action driven primarily by developments in the Middle East and their implications for energy prices and inflation expectations. Attention now turns to next week’s July FOMC decision and the June PCE inflation report, while this week’s USD 13 billion 20-year bond auction will provide an important test of investor demand as geopolitical uncertainty remains elevated. Higher oil prices continued to lift Fed rate expectations, with money markets now pricing around 30bps of tightening by year-end. A 25 basis point hike is now fully priced by October, while September carries an implied probability of around 78%. Those repricing dynamics kept the front end under the greatest pressure, resulting in a bear flattening of the Treasury curve. Elsewhere, Oil closed higher by 2% and Gold by 1.5%.
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For anyone following my Platinum Service it made 290 points yesterday and is now ahead by 5546 points for July 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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