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North American News

US stocks close the month with strong gains

  • Major averages have their best month of the year

The major stock indices are ending with solid gains for the day:

  • Dow industrial average rose 315.50 points or 0.97% at 32845.14
  • S&P index rose 57.86 points or 1.42% at 4130.28
  • NASDAQ index rose 228.10 points or 1.8% at 12390.70. That’s a largest increase cents April 2020
  • Russell 2000 rose 12.20 points or 0.65% at 1885.23

For the trading month the average had their best month of the year:

  • Dow industrial average rose 6.73%
  • S&P index rose 9.12% which was the best month since November 2020
  • NASDAQ index rose 12.35%.

For the trading week.

  • Dow industrial average rose by 2.97%
  • S&P index rose 4.26%
  • NASDAQ index rose 4.7%

US 10 year yields trades at new session lows

  • Low yield reaches 2.624%. Yields down about 10 basis points on the week.

The US 10 year yields are trading at session lows of 2.624%. The high yield for the day reached 2.728%. The yield has moved below swing lows from April 13 and April 14 at 2.648% and trades at the lowest level since April 7.

The next target comes against the swing high from March 28 and the swing low from April 7 at the 2.557%.

US June core PCE 4.8% vs. 4.7% expected

  • The details of the core PCE report for June 2022
  • Prior report was 4.7%
  • Core PCE price index
  • Core ex food and energy month-to-month 0.6% vs. 0.5% estimate. Last month 0.3%
  • PCE price index 1.0% vs 0.6% last month
  • Price index YoY 6.8% vs the same month last year of 6.3%
  • prices for goods increase 1.5%
  • prices for services rose 0.6%
  • food prices increase 1%
  • energy prices increased 7.5%

Commodities

Gold remains strong, still looking at $1770

  • XAUUSD rebounds after hitting a fresh low at $1751.
  • US yields erase earlier gains, back near recent lows.
  • US dollar weakens during the American session.

Gold continues to shine as it shows the latest rebound. XAUUSD printed a fresh daily low during the American session at $1751, but only to rebound more than $10 in a few minutes, rising back above $1760. The outlook remains positive for the metal that is trading near the $1770 resistance area.

Technicals and yields

Gold is about to post the second weekly gain in a row, with the best performance in months. What it started as a correction, after falling to test the critical support around 1675$, it has become a strong rally that could add to gains if the price holds above $1750.

The decline in US yields after the FOMC meeting triggered more gains in XAUUSD. Even after US economic data released on Friday showed a still strong consumer and high inflation, the demand for Treasuries held firm. The US 10-year yield stands at 2.65%, and the 30-year is back under 3.00%.

The greenback is still on positive ground on Friday but off highs and about to end the week on a weak note. The DXY is flat for the day around 106.10, consolidating weekly losses. The long-term perspective is still bullish for DXY but the momentum in the short-term has faded.

Silver surges above $20.00, registers its biggest weekly gain since August 2020

  • Silver price posts its first weekly gain in the last nine weeks, up by 9%.
  • Falling US Treasury yields undermine the greenback and bolstered precious metals prices.
  • Fed officials are confident of achieving a soft landing while acknowledging that further rate hikes are needed.

Silver Price rises for four consecutive days, breaking above the $20.00 figure for the first time since July 5, preparing to finish the week with gains of almost 9%., despite higher than expected US inflation data, namely the PCE, the Fed preferred inflation gauge, exceeding estimations. XAGUSD traders ignored the news and held the white metal price at around $20.25, up 0.11% at the time of writing.

Silver rallies amidst an upbeat sentiment

Global equities remain to trade positively, reflecting an upbeat sentiment. Meanwhile, the US Department of Commerce revealed that June’s Personal Consumption Expenditure rose 1% MoM, higher than 0.9% estimations. Annually based, edged higher by 6.8%, vs. 6.7% foreseen by analysts.

Late during the day, the University of Michigan reported the Consumer Sentiment on its final reading for July, which rose 51.5, above estimations. In the same survey, American inflation expectations for a horizon of 5 years uptick from 2.8% (preliminary) to 2.9%, though less than June’s readings.

WTI crude oil futures settle at $98.60

  • Up $2.20 or 2.28%

The price of WTI crude oil futures are settling at $98.60. That’s up $2.20 or 2.28%. The high price reached $101.87. The low price extended to $96.42. The price got a boost on the break of the $100 level, but could not sustain the momentum.

Today Chevron Exxon both announced strong earnings.

  • Exxon shares are up $4.20 or 4.53%.
  • Chevron shares are up $13.16 or 8.75%

EU News

European indices close with solid gains

  • Markets have a sigh of relief after better-than-expected GDP

The European major indices are closing with solid gains on the day. Investors let out a sigh of relief after better-than-expected GDP data.

  • French GDP rose 0.5% vs. 0.2% expected
  • Italy GDP rose 1.0% vs. 0.3% expected
  • Spain GDP rose 1.1% vs. 0.4% expected
  • German GDP came in worse than expected 0.0% vs. +0.1%
  • Overall the euro zone flash GDP came in at 0.7% vs. 0.2%

Looking at the closing levels:

  • German DAX rose 201.92 points or 1.52% at 13484.04
  • France’s CAC rose 109.30 points or 1.72% at 6448.51
  • UK’s FTSE 100 rose 78.16 points or 1.06% at 7423.42
  • Spain’s Ibex rose 71.3 points or 0.88% at 8156.21
  • Italy’s FTSE MIB rose 470 points or 2.15% at 22402.62

For the trading week:

  • German DAX rose 1.74%
  • France’s CAC rose 3.73%
  • UK’s FTSE 100 rose 2.02%
  • Spain’s Ibex rose 1.3%
  • Italy’s FTSE MIB rose 5.8%

Other News

France’s Le Maire: We are in the peak of inflation

  • Remarks by French finance minister, Bruno Le Maire
  • But inflation will stay high until the end of 2022
  • Inflation should go down in 2023
  • French economic fundamentals are solid

Cryptocurrency News

What’s next for Ethereum Classic price after tripling in value to $40

  • Ethereum Classic’s price wakes up from slumber as miners prepare for the upcoming Ethereum (ETH) merge.
  • Major mining platforms like Antpool have pledged support for Ethereum Classic with a $10 million investment.
  • The Ethereum merge will continue fueling the ETC rally, with the climb to $40 likely to be the beginning of a bull run.