S&P 500 continues its advance while EUR/GBP, silver price drop 

Macro update

Samsung posts record profit growth but shares tumble: Samsung Electronics forecast a 19-fold increase in second-quarter operating profit to 89.4 trillion won, exceeding market expectations, but its shares fell by as much as 10% as investors questioned the sustainability of the AI-driven semiconductor boom, erasing more than $100 billion from its market capitalisation.

Asian technology stocks come under heavy selling pressure: South Korea's KOSPI plunged 8%, triggering circuit breakers, while Japan's Nikkei declined as semiconductor-related stocks, including Kioxia and Advantest, moved sharply lower. MSCI's Asia-Pacific index excluding Japan also fell 2.6%.

Investors rotate into Japanese value stocks: Financial and value shares outperformed as investors shifted away from high-growth technology names, with Mitsubishi UFJ rising 3% and the Topix Value Index advancing even as the Growth Index declined, in what strategists described as a healthy market rotation.

Oil prices edge higher as supply outlook remains in focus: Brent crude gained 0.5% to $72.37 a barrel and WTI rose 0.4% to $68.85, remaining close to pre-Iran conflict levels as easing geopolitical tensions shifted attention towards recovering Gulf exports and higher production from OPEC+ members and the UAE.

Wall Street advances on strength in chip stocks: The S&P 500 rose 0.72% and the Nasdaq gained 1.12%, supported by a 3.7% rally in Broadcom after it extended its custom-chip supply agreement with Apple through 2031, although Microsoft fell after announcing plans to cut 4,800 jobs.

Yen stabilises near multi-decade lows: The Japanese currency recovered modestly to around ¥161.79 per dollar after briefly weakening beyond ¥162, with traders remaining alert to the possibility of official intervention, while Japanese government bond yields eased following strong demand at an auction of super-long-dated debt.

S&P 500 rises further still

The S&P 500's recovery from Friday's 7,294 low has propelled it to Monday's 7,551 high, a rise above which would put the mid-June high at 7,578 on the map. Together with the early June 7,620 record high  this area may act as resistance, though.

Below Monday's low at 7,428 the March-to-July support line may be spotted at 7,378.

Short-term outlook: bullish while above the 2 July low at 7,428

Medium-term outlook: bullish while above the 9 June low at 7,238

S&P500 daily candlestick chart

EUR/GBP hits 50% retracement

EUR/GBP remains under pressure and is seen slipping through its halfway point of its December 2024-to-November 2025 bull run at £0.8545. The next potential downside target sits at the late June 2025 low at £0.8509.

Minor resistance may be found around the 23 June 2025 high at £0.8575.

Short-term outlook: bearish while below the 26 June high at £0.8651

Medium-term outlook: bearish while trading below the 26 June high at £0.8651

EUR/GBP daily candlestick chart

Silver price resumes descent

The price of Silver seems to be keeling over and is heading back down towards its March low at $61.0065. If slipped through, the late June low at $55.5967 may be retested.

Were a rise above Monday's high at $63.2765 to be seen, though, the $66.0000 region may be revisited and perhaps the 22 June high at $67.1685 too.

Short-term outlook: bearish while below the 6 July high at $63.2765

Medium-term outlook: bearish while below the 17 June high at $71.5641

Sliver daily candlestick chart