Skip to content

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

After-market relief in Wall Street, with look-ahead to US job report: US dollar, Straits Times Index, Copper

Major US indices ended the day slightly underwater, as the US 10-year Treasury yields continue to head to its highest level in almost nine months.

Source: Bloomberg

Market Recap

Major US indices ended the day slightly underwater (DJIA -0.19%; S&P 500 -0.25%; Nasdaq -0.10%), as the US 10-year Treasury yields continue to head to its highest level in almost nine months, following through with the recent announcement that the US Treasury would boost its issuance of long-term debt this quarter.

The release of the US ISM services purchasing managers index (PMI) (52.7 versus 53 forecast) has been mixed as well, particularly with the renewed pull-ahead in services’ prices (56.8 vs 52.1 forecast) which suggests that inflation progress could potentially be harder to come by ahead. Overall, that has kept the lid on the recent equities’ rally, which are already seeing some near-term signs of exhaustion, before attention was shifted to Apple and Amazon’s earnings release.

Better-than-expected growth in Apple’s services division (8% growth YoY vs previous 5.5% in previous quarter) and resilient iPhone sales in China have been the bright spot in Apple’s latest results, but market participants found some discomfort with the continued weakness in its hardware products, which was guided to last into the current quarter. Its share price is lower by 2% after-market.

The positive surprise came from Amazon, with its previous cost-cutting measures translating to an almost two-fold beat in earnings per share. Revenue growth has also returned to the double-digit territory as well (11% year-on-year), with management’s guidance for the strength to continue. The outperformance on all fronts (including Amazon Web Services and advertising) suggests that market expectations have previously underestimated Amazon’s resilience, which prompts a 9% jump in its share price after-market.

Ahead, the US non-farm payroll data will be the key focus, where a more lukewarm figure may likely make the case for the Fed to transit into a prolonged rate pause while supporting soft landing hopes. Current expectations are for 184,000 job additions in July, compared to the previous month’s 209,000. Unemployment rate is expected to be held steady at 3.6%. The US dollarwill be in focus, seemingly attempting for a break above a key downward trendline resistance, but given the lower highs and lower lows formation still in place, much still awaits. The 103.12 level will be a key resistance to overcome ahead, which marked its previous post-Fed sell-off. On the downside, the 100.50 level will stand as immediate support to watch.

US Dollar Basket Source: IG charts


Asia Open

Asian stocks look set for a subdued open, with Nikkei +0.29%, ASX -0.01% and KOSPI -0.16% at the time of writing. Pockets of resilience were found in US-listed Chinese equities overnight, with the Nasdaq Golden Dragon China Index up 3.5%.

Following DBS earnings release yesterday, OCBC’s results today will mark the last of local banks’ earnings. The bank posted a 34% rise in 2Q net profit which slightly missed estimates, while economic headwinds into 2024 has been guided, which puts a less optimistic growth outlook in place compared to the other two banks. Dividends were raised to S$0.40 per share, up 43% from a year ago but given that share price has reacted with a strong rally to UOB’s results, much may have been priced.

Following an 8% rally in the Straits Times Index since early-July this year, some “sell-the-news” seem to be playing out, with the near-term unwinding leading to the formation of a bearish Moving Average Convergence/Divergence (MACD) crossover. Perhaps the key support to put on the radar ahead will be the 3,240 level, where a confluence of its 100-day and 200-day moving average (MA) stands. The level also marked a previous break of its downward trendline resistance. For now, it could still be a near-term retracement compared to a reversal, with recent sell-off marking the 38.2% Fibonacci retracement level, while its RSI still hangs above its key 50 level.

Singapore Index Source: IG charts

On the watchlist: Copper prices attempting to form higher low off trendline support

Downbeat economic data out of China and a firmer US dollar have led copper prices to retrace by around 4% this week, but the near-term upward trend remains intact for now with an attempt to form a higher low on the daily chart yesterday. This followed after a retest of a support confluence (upward trendline support, 50-day moving average) at the US$8,460/tonne level was met with some dip-buying, with buyers defending the key 50 level on its daily relative strength index (RSI) thus far.

The US$8,700/tonne level may stand as immediate resistance to overcome. Reclaiming this level may pave the way to retest the US$9,000/tonne level next, with any formation of a new higher high on watch to reinforce the prevailing upward trend.

Copper Source: IG charts

Thursday: DJIA -0.19%; S&P 500 -0.25%; Nasdaq -0.10%, DAX -0.79%, FTSE -0.43%

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access
Learn more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.