Momentum Swinging Back to the US, Zavolock Says
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Yahoo
5 minutes ago
- Yahoo
Dollar Edges Higher with T-Note Yields
The dollar index (DXY00) on Thursday rose by +0.19%. The dollar recovered from a 2.5-week low and moved higher as T-note yield rose after weekly jobless claims unexpectedly fell to a 3-month low, a sign of labor market strength that is hawkish for Fed policy and positive for the dollar. The dollar was initially under pressure on Thursday as improved prospects for an EU trade agreement with the US boosted the euro. Also, Thursday's weaker-than-expected US PMI and new home sales reports were bearish for the dollar. More News from Barchart As Silver Scores a Nearly 14-Year High, New Records Could Be Just Around the Corner for Precious Metals Will Metals Stay in the Spotlight Wednesday? Possible EU-US Trade Deal Weighs on the Dollar Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. US weekly initial unemployment claims unexpectedly fell -4,000 to a 3-month low of 217,000, showing a stronger labor market than expectations of an increase to 226,000. The US June Chicago Fed national activity index rose +0.06 to -0.10, stronger than expectations of -0.15. The July S&P US manufacturing PMI fell -3.4 to 49.5, weaker than expectations of 52.7 and the lowest level in 7 months. US June new home sales rose +0.6% m/m to 627,000, weaker than expectations of +4.3% m/m to 650,000. Federal funds futures prices are discounting the chances for a -25 bp rate cut at 3% at the July 29-30 FOMC meeting and 63% at the following meeting on September 16-17. EUR/USD (^EURUSD) Thursday fell by -0.03%. The euro fell from a 2.5-week high Thursday and turned slightly lower on comments from ECB President Lagarde, who said the economic risks to the Eurozone are tilted to the downside and a stronger euro could dampen inflation more than expected. The euro initially moved higher Thursday on hopes that a trade deal between the EU and US was close. Also, signs of strength in the Eurozone economy boosted the euro after the Eurozone July S&P manufacturing PMI rose to a 3-year high and the July S&P composite PMI rose to an 11-month high. In addition, the euro garnered support Thursday after the ECB kept interest rates unchanged and said the Eurozone economy has so far proven resilient. The Eurozone July S&P manufacturing PMI rose +0.3 to a 3-year high of 49.8, right on expectations. The Eurozone July S&P composite PMI rose +0.4 to an 11-month high of 51.0, stronger than expectations of +0.1 to 50.7. Eurozone June new car registrations fell -7.3% y/y to 1.010 million units, the largest decline in 10 months. The German Aug GfK consumer confidence index unexpectedly fell -1.2 to a 4-month low of -21.5, weaker than expectations of an increase to -19.3. As expected, the ECB kept the deposit facility rate unchanged at 2.00%. The ECB said, 'Inflation is currently at the 2% medium-term target' and the economy has so far proven resilient, but the environment remains uncertain due to trade disputes. Swaps are pricing in a 21% chance of a -25 bp rate cut by the ECB at the September 11 policy meeting. USD/JPY (^USDJPY) Thursday rose by +0.27%. The yen fell from a 2-week high against the dollar today and moved lower after the Nikkei Stock Index rallied to a 1-year high, which reduced the safe-haven demand for the yen. Losses in the yen accelerated Thursday after T-note yields rose. The yen initially moved higher Thursday on speculation that the BOJ is closer to raising interest rates, following Wednesday's trade agreement between the US and Japan, which removed uncertainty from the market. The yen continues to be undercut by concerns that the LDP's loss of its majority in Japan's upper house in Sunday's elections may lead to fiscal deterioration in Japan's government finances, as the government boosts spending and implements tax cuts. Thursday's Japanese economic news was mixed for the yen. The Japan July S&P manufacturing PMI fell -1.3 to 48.8. However, the July S&P services PMI rose +1.8 to a 5-month high of 53.5. August gold (GCQ25) on Thursday closed down -24.10 (-0.71%), and September silver (SIU25) closed down -0.279 (-0.71%). Precious metals were under pressure on Thursday as the easing of global trade tensions reduced safe-haven demand for the metals. The US and Japan agreed to a trade deal on Wednesday, and Bloomberg reported that the European Union (EU) and the US are progressing toward a trade agreement. Also, Thursday's US weekly initial unemployment claims report showed jobless claims unexpectedly fell to a 3-month low, a sign of US labor market strength that is hawkish for Fed policy and bearish for precious metals. In addition, higher global bond yields and a stronger dollar on Thursday undercut the prices of precious metals. Finally, Thursday's action by the ECB to keep interest rates unchanged, along with its post-meeting statement that the Eurozone economy is proving resilient, was bearish for precious metals. Precious metals continue to receive safe-haven support from geopolitical risks, including the conflicts in Ukraine and the Middle East. Fund buying of precious metals continues to support prices after gold holdings in ETFs rose to a two-year high on Wednesday, and silver holdings in ETFs reached a three-year high on the same day. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
New York Post
6 minutes ago
- New York Post
TikTok will go dark in US if China doesn't OK sale before Trump's deadline: Lutnik
Commerce Secretary Howard Lutnick said Thursday that TikTok will have to stop operating in the United States if China does not approve a deal for the sale of the Chinese-owned short video app that is used by some 170 million Americans. Lutnick, speaking on CNBC, also said the US must control the algorithm that makes the social media platform work. Last month, President Trump extended by 90 days to Sept. 17, a deadline for China-based ByteDance to divest the US assets of TikTok. Trump's action took place despite a 2024 law that mandated a sale or shutdown by Jan. 19 of this year if there had not been significant progress. Commerce Secretary Howard Lutnick warned TikTok will go dark in the US if China doesn't approve a sale to American investors. REUTERS 'China can have a little piece or ByteDance, the current owner, can keep a little piece. But basically, Americans will have control. Americans will own the technology, and Americans will control the algorithm,' Lutnick said. 'If that deal gets approved, by the Chinese, then that deal will happen. If they don't approve it, then TikTok is going to go dark, and those decisions are coming very soon.' TikTok did not immediately comment. A deal had been in the works this spring that would spin off TikTok's US operations into a new US-based firm, majority-owned and operated by US investors. This stalled after China indicated it would not approve it following Trump's announcements of steep tariffs on Chinese goods. Trump has three times granted reprieves from federal enforcement of the law that mandated the sale or shutdown of TikTok that was supposed to take effect in January. A deal had been in the works this spring that would spin off TikTok's US operations into a new US-based firm, majority-owned and operated by US investors. REUTERS Attorney General Pam Bondi sent letters to Apple, Google and other companies that provide services or host the TikTok app that were made public this month. The letters said the Justice Department was irrevocably relinquishing any claims against the companies for potential violations of the law, citing Trump's determination that an abrupt shutdown would interfere with his overseeing national security and foreign affairs. Some Democratic lawmakers argue Trump has no legal authority to extend the deadline and suggest the deal under consideration would not meet legal requirements.
Yahoo
10 minutes ago
- Yahoo
Amazon.com (AMZN) Partners With Apex Systems For AI Solutions In AWS Marketplace
experienced a 22% price increase over the last quarter, a reflection of its robust Q1 earnings reporting a significant rise in revenue and net income. The successful launch of Apex Systems' customer service AI on the AWS Marketplace highlights Amazon's innovative edge, while strategic business expansions such as the expansion of delivery services and AWS infrastructure in Chile have reinforced its market position. Despite minor legal challenges and executive changes, these advancements complemented the overall market uptrend of 18% over the past year, aligning Amazon's performance with broader market dynamics. Buy, Hold or Sell View our complete analysis and fair value estimate and you decide. The end of cancer? These 25 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. The recent advancements in Amazon's offerings, highlighted by the launch of Apex Systems' AI service on AWS and expansion efforts in Chile, align well with the company's narrative of enhancing operational efficiency and broadening market reach. These initiatives could further bolster Amazon's fulfillment network and digital services, potentially impacting revenue and earnings positively. The AI advancements, particularly within AWS, may contribute significantly to future revenue growth as companies increasingly adopt cloud-based solutions. Despite the initial costs and potential competition challenges, these strategic moves are expected to support sustainable growth in revenue and margins. Amazon's longer-term total shareholder return of 88.72% over the past three years underscores the company's ability to deliver substantial value to investors, reflecting effective execution of its strategies. This return contrasts with the firm's recent alignment with a broader market uptrend of 18% over the past year. The recent 22% share price surge indicates positive short-term sentiment, yet the current price of US$228.29 remains below the consensus analyst price target of approximately US$250.77. This suggests potential for further upside, contingent on the realization of forecasted growth in revenue and earnings to US$104.8 billion by 2028. Investors should consider these variables when evaluating Amazon's market positioning and future growth prospects. The valuation report we've compiled suggests that current price could be quite moderate. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AMZN. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
