Day: September 12, 2024

Nasdaq and Nvidia March Higher As Risk Sentiment Improves

Posted on by Skerdian Meta

The retreat in stock markets seems to be over, as the Nasdaq has rallied 1,000 points higher this week, closing the fourth day of gains in a row. Markets seem convinced that the FED won’t deliver a major rate cut as core CPI and PPI inflation seem to remain sticky in the US, while employment seems to have stabilized, which has improved risk sentiment, setting stock markets back on the bullish trend.

US Stocks Rise Amid Broader Positive Risk Sentiment

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New Record High in Gold at $2,550, As US Employment Stabilizes

Posted on by Skerdian Meta

Gold has finally broken the resistance at the $2,531 August high and has placed a new record high at $2,551 after the US PPI and Unemployment Claims data. The lows have been getting higher, suggesting buying pressure, while the 20 SMA was acting as support on the daily chart, so the breakout that we highlighted yesterday wasn’t a major surprise for us. Continue reading “New Record High in Gold at $2,550, As US Employment Stabilizes” →

USDCAD Resumes Uptrend as the BOC Plans More Rate Cuts

Posted on by Skerdian Meta

The Canadian dollar (CAD) has been weakening throughout September, with the USDCAD pair rising by about 2 cents from its August lows, breaking above the 1.36 level. This decline is largely driven by ongoing pressure from the strengthening U.S. dollar and growing economic concerns weighing on the CAD. While a 22% surge in building permits offered some support to the tight Canadian real estate market, it did little to reverse the upward trend of the USDCAD.

Canadian building permits jumped by more than 20%

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EURUSD Holds Above 1.10 After the 25 bps ECB Rate Cut

Posted on by Skerdian Meta

EURUSD was showing resilience last month, peaking just above 1.12, but since the last week of August, it has been falling lower, approaching the 1.10 level as the Eurozone economy continues to be headed toward a possible recession, which has forced the ECB to embark on a steeper rate cut journey, cutting interest rates by 60 basis points today.

The ECB cut interest rates again in September

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Amended: European Economic News Preview: ECB Set To Cut Key Rates

Posted on by RTT Staff Writer

Corrects story headline

The European Central Bank is widely expected to cut its key interest rates by 25 basis points amid falling inflation and economic indicators signalling a weaker outlook.

The governing council of the ECB is slated to announce the outcome of its policy meeting in Frankfurt at 8.15 am ET. ECB staff macroeconomic projections are also due.
ECB Chief Christine Lagarde will hold the press conference at 8.45 am ET.

Although the fight against inflation is not entirely over as wage growth and selling price expectations are still high, further rate cut decisions beyond the September meeting became more complicated and controversial than currently priced in by financial markets, ING economist Carsten Brzeski said.

Other major economic reports due from Europe are final inflation from Spain and quarterly unemployment data from Italy.

At 2.00 am ET, Destatis publishes Germany’s wholesale prices for August. In the meantime, consumer prices are due from Sweden.

At 3.00 am ET, Spain’s INE is scheduled to issue final inflation data for August. The flash estimate showed that consumer price inflation weakened to 2.2 percent from 2.8 percent in July.

At 4.00 am ET, unemployment figures are due from Italy. The jobless rate is expected to fall to 7.1 percent in the second quarter from 7.2 percent in the prior quarter.

7-Eleven Fudge Brownie Recalled For Undeclared Walnut

Posted on by RTT Staff Writer

Fullerton, California-based Innovation Bakers, LLC has issued a limited recall of one day’s production of its 3.5 oz packs of 7-Eleven Fudge Brownie, 05254856392, citing the possible presence of undeclared walnuts, a known allergen, according to the U.S Food and Drug Administration.

The recall affects 2,081 single serve units of 7-Eleven Fudge Brownie that were distributed only to 7-Eleven stores in the Southern California region and delivered on 09/08/2024 and 09/09/2024. The product comes in a 3.5 oz pack, marked with Lot Code: Best By Wednesday 0911.

The recall was initiated after it was discovered that the walnut-containing product was distributed in packaging that did not reveal the presence of walnuts. No other 7-Eleven products are impacted by this recall.

People who have an allergy or severe sensitivity to walnuts may get serious or life-threatening allergic reactions if they consume these products. However, no illnesses have been reported related to the recalled product so far.

Consumers who have purchased the impacted product are urged to discard them or return to the place of purchase for a full refund

In similar recalls, Flagstone Foods, LLC in mid-August called back one lot of 6.5oz Emerald Kettle Glazed Walnut citing the presence of undeclared Peanuts, Almonds and Pecans, known allergens.

Earlier in June, Toronto, Ontario -based FGF Brands Inc. recalled 11830 cases of ALDI – Bakeshop Chocolate Chip Muffin 4 count for undeclared Walnut.

For More Such Health News, visit rttnews.com

Cryptos Rally After U.S. Inflation Update

Posted on by RTT Staff Writer

Cryptocurrencies rallied in the past 24 hours as markets cheered the more than expected cooling in consumer price inflation in the U.S. However sticky core inflation limited gains. Anxiety ahead of the European Central Bank’s interest rate decision and release of producer price inflation from the U.S. on Thursday morning also weighed on sentiment.

According to data released by the U.S. Bureau of Labor Statistics, headline annual inflation in the U.S. declined to 2.5 percent in August from 2.9 percent in July. With a fifth consecutive month of decline, inflation dropped to the lowest since February 2021. The level has pleasantly surprised markets which had expected a reading of 2.6 percent. The core component excluding the volatile fuel and food components remained steady at the over three-year low of 3.2 percent as expected.

While headline monthly inflation remained steady at 0.2 percent on expected lines, the core component thereof which was expected to be steady at 0.2 percent unexpectedly edged up to 0.3 percent.

In response to the inflation update which showed core inflation remaining sticky, the expectation of interest rate traders tilted towards a 25-basis points cut. The CME FedWatch tool shows an 87-percent likelihood of a 25-basis points rate cut in September. Only 13 percent probability is currently assigned to a 50-basis points rate cut in the review scheduled for September 18.

Despite the cooling in headline inflation, the disappointment of core inflation missing expectations reflected in the Dollar Index as well as bond yields. The 6-currency Dollar Index is currently at 101.74 versus 101.68 at close on Wednesday and 101.63 at close on Tuesday. Ten-year U.S. bond yield is currently at 3.671 percent versus 3.651 percent at close on Wednesday and 3.640 percent at close on Tuesday.

Overall crypto market capitalization is currently at $2.05 trillion versus $1.99 trillion a day earlier.

Bitcoin which touched a high of $58,454 after the inflation update is currently trading at $58,155. BTC had touched a low of $55,567 in the past 24 hours. The leading cryptocurrency has gained 3 percent overnight and 2.1 percent in the past week. Though Bitcoin’s current price is 21 percent below the all-time high, it has recorded gains of 37.6 percent on a year-to-date basis.

Data from Farside Investors on Bitcoin Spot ETF products in the U.S. showed a net outflow of $44 million on Wednesday as compared with a net inflow of $117 million on Tuesday. Ark 21Shares Bitcoin ETF (ARKB) topped outflows with $54 million followed by Grayscale Bitcoin Trust (GBTC) that recorded outflows of $4.6 million. Grayscale Bitcoin Mini Trust (BTC) also recorded net outflows of $0.5 million. Fidelity Wise Origin Bitcoin Fund (FBTC) topped inflows with $12.6 million. Invesco Galaxy Bitcoin ETF (BTCO) also recorded inflows of $2.6 million. No other ETF recorded any flows on Wednesday.

Ethereum which touched a high of $2,390 and a low of $2,279 in the past 24 hours is currently changing hands at $2,358, around 52 percent below the all-time high. With losses of close to 2 percent in the past week, the leading alternate coin’s year-to-date gains have fallen to 3.4 percent.

Data from Farside Investors on Ethereum Spot ETF products in the U.S. showed a net outflow of $0.5 million on Wednesday as compared with net inflows of $11.4 million on Tuesday. VanEck Ethereum ETF (ETHV) recorded outflows of $1.7 million which surpassed inflows of $1.2 million in Fidelity Ethereum Fund Fidelity (FETH). No other ETF recorded any flows on Wednesday.

4th ranked BNB (BNB) rallied 6.5 percent overnight and 7.7 percent in the past week to trade at $544.04.

5th ranked Solana (SOL) gained 2.7 percent overnight, lifting gains to 1.6 percent in the past 7 days. SOL is currently trading at $134.89.

7th ranked XRP (XRP) rallied 0.93 percent overnight to trade at $0.5373. The cryptocurrency issued by Ripple Labs is grappling with weekly losses of 2.7 percent and year-to-date losses of more than 12 percent.

8th ranked Dogecoin (DOGE) gained 1.8 percent overnight to trade at $0.1023.

9th ranked Toncoin (TON) rallied 3.1 percent overnight. TON is currently trading at $5.39.

TRON (TRX) ranked 10th overall has added 1.3 percent in the past 24 hours to trade at $0.1542.

87th ranked Popcat (POPCAT) topped overnight gains with a surge of more than 18 percent. 31st ranked Sui (SUI) followed with gains of more than 16 percent. 100th ranked Pendle (PENDLE) added 15.9 percent overnight followed by 24th ranked Artificial Superintelligence Alliance (FET) that rallied 11.3 percent.

21st ranked Internet Computer (ICP) that has shed 3.1 percent is the only cryptocurrency among the top 100 to record overnight losses of more than a percent.

For More Cryptocurrency News, visit rttnews.com

UK Housing Market Conditions Improve On Interest Rate Cut: RICS

Posted on by RTT Staff Writer

The UK housing market conditions strengthened in August as the recent decrease in mortgage interest rates spurred demand and sales activity, the latest survey from the Royal Institution of Chartered Surveyors showed on Thursday.

The number of people looking to buy homes increased in August, with the balance rising to 15 from 4 in July.

After two years of decline, house prices started to increase in August. The house price balance rose to +1, the first positive score since October 2022. A net 14 of respondents forecast a steady rise over the next three months.

On the supply side, the number of new property listings showed a moderate rise. The corresponding balance rose to 7 from 3 in July.

RICS Chief Economist Simon Rubinsohn said the survey captures an improvement in sentiment over the past month.

“However, anecdotal remarks from respondents still demonstrate the need for realistic pricing to get deals done with uncertainty both around the scope for further interest rate cuts and the likely contents of the forthcoming Budget keeping the mood in check,” said Rubinsohn.

Last month, the Bank of England had lowered its benchmark rate for the first time since 2020 citing receding inflation and weaker growth momentum. The bank rate was reduced by 25 basis points to 5.00 percent from 5.25 percent, which was the highest since early 2008.

Commodity Currencies Rise As Asian Stocks Traded Higher

Posted on by RTT Staff Writer

The Commodity currencies such as Australia, the New Zealand and the Canadian dollars strengthened against their major currencies in the Asian session on Thursday amid risk appetite, as traders react to a key U.S. inflation report that showed a bigger than expected increase in core inflation, raising expectations for a quarter-point rate cut at the U.S. Fed’s monetary policy meeting next week.

The data seemingly reduced the chances of the Fed cutting interest rates by 50 basis points but is still expected to continue lowering rates in the coming months.

Following the report, CME Group’s FedWatch Tool is indicating an 83% chance of a quarter point rate cut and just a 17% percent chance of a half-point rate cut.

Gains across most sectors led by mining and technology stocks, also led to the upturn of investor sentiment.

Crude oil prices surged higher, recovering from a three-year low in the previous session thanks to fears of prolonged production shutdowns in the offshore oil patch due to Hurricane Francine. West Texas Intermediate Crude oil futures for October ended up by $1.56 or 2.37 percent at $67.31 a barrel.

In the Asian trading today, the Australian dollar rose to a 2-day high of 95.67 against the yen, from yesterday’s closing value of 95.00. The aussie may test resistance around the 98.00 region.

Against the New Zealand and the U.S. dollars, the aussie advanced to a 9-day high of 1.0894 and a 6-day high of 0.6695 from Wednesday’s closing quotes of 1.0875 and 0.6672, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.09 against the kiwi and 0.68 against the greenback.

Against the euro and the Canadian dollar, the aussie climbed to 6-day highs of 1.6458 and 0.9084 from yesterday’s closing quotes of 1.6496 and 0.9059, respectively. The next possible upside target for the aussie is seen around 1.62 against the euro and 0.91 against the loonie.

The NZ dollar rose to a 6-day high of 1.7898 against the euro, from yesterday’s closing value of 1.7942. On the upside, 1.76 is seen as the next resistance level for the kiwi.

Against the U.S. dollar and the yen, the kiwi advanced to 2-day highs of 0.6159 and 87.97 from Wednesday’s closing quote of 0.6136 and 87.35, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.63 against the greenback and 90.00 against the yen.

The Canadian dollar rose to a 6-day high of 1.4937 against the euro, from yesterday’s closing value of 1.4946. The loonie is likely to find resistance around the 1.48 region.

Against the yen and the U.S. dollar, the loonie advanced to 2-day highs of 105.44 and 1.3564 from Wednesday’s closing quotes of 104.85 and 1.3571, respectively. If the loonie extends its uptrend, it is likely to find resistance around 109.00 against the yen and 1.34 against the greenback.

Looking ahead, the European Central Bank is slated to announce the outcome of its policy meeting in Frankfurt at 8.15 am ET. The central bank is widely expected to cut its key interest rates by 25 basis points amid falling inflation and economic indicators signaling a weaker outlook.

Following the monetary policy decision, the ECB Chief Christine Lagarde will hold the press conference at 8.45 am ET.

In the New York session, Canada building permits for July, U.S. PPI for August, weekly jobless claims, U.S. Federal Reserve’s budget statement for August and U.S WASDE report are slated for release.

Markets Reconcile To The Prospect Of A Small Fed Rate Cut

Posted on by RTT Staff Writer

Sticky core inflation in the U.S. eclipsed the euphoria of a declining headline inflation causing markets to reconcile to the prospect of a 25-basis points rate cut by the Federal Reserve in the upcoming review.

Wall Street Futures have edged up after Wednesday’s tech rally. European benchmarks are trading on a positive note ahead of the widely anticipated interest rate cut by the European Central Bank on Thursday morning. Asian stock indexes also finished trading on a mostly positive note.

Dollar Index edged up. Bond yields hardened across regions. Crude oil prices gained amidst concerns about the impact of Hurricane Francine on U.S. crude oil output. Gold edged up. Cryptocurrencies are trading with strong gains.

Here is a snapshot of the major world markets at this hour.

Stock Indexes:

DJIA (US30) at 40,943.80, up 0.20%
S&P 500 (US500) at 5,566.70, up 0.23%
Germany’s DAX at 18,555.75, up 1.25%
U.K.’s FTSE 100 at 8,259.01, up 0.79%
France’s CAC 40 at 7,460.78, up 0.86%
Euro Stoxx 50 at 4,828.45, up 1.36%
Japan’s Nikkei 225 at 36,855.50, up 3.55%
Australia’s S&P ASX 200 at 8,075.70, up 1.10%
China’s Shanghai Composite at 2,717.12, down 0.17%
Hong Kong’s Hang Seng at 17,240.39, up 0.77%

Currencies:

EUR/USD at 1.1018, up 0.06%
GBP/USD at 1.3053, up 0.08%
USD/JPY at 142.70, up 0.24%
AUD/USD at 0.6675, up 0.04%
USD/CAD at 1.3575, up 0.03%
Dollar Index at 101.72, up 0.04%

Ten-Year Govt Bond Yields:

U.S. at 3.676%, up 0.69%
Germany at 2.1335%, up 1.64%
France at 2.839%, up 0.92%
U.K. at 3.8220%, up 1.59%
Japan at 0.871%, up 1.16%

Commodities:

Brent Oil Futures (Nov) at $71.27, up 0.93%.
Crude Oil WTI Futures (Oct) at $67.95, up 0.95%.
Gold Futures (Dec) at $2,545.80, up 0.13%.

Cryptocurrencies:

Bitcoin at $58,043.01, up 2.48%
Ethereum at $2,353.02, up 1.03%
BNB at $544.55, up 6.27%
Solana at $134.46, up 2.25%
XRP at $0.5393, up 1.06%.