Global risk appetite was mixed last week, depending on what continent you were looking at. On Wall Street, the Dow Jones, S&P 500, and Nasdaq 100 gained about 1.11%, 1.64%, and 1.38% respectively.
Tech stocks saw a hiccup following disappointing earnings from Snap Inc. and Intel. In Europe, the Euro Stoxx 50 and FTSE 100 ended +0.14% and -0.41% respectively.
In the Asia-Pacific region, Japan’s Nikkei 225 fell 0.91% as the Hang Seng soared 3.14%. Taking a look at major currencies, the Dollar still broadly underperformed.
Taking a look at commodities, anti-fiat gold prices managed to climb this past week. However, rising government bond yields may keep the yellow metal from achieving its full potential.
Ongoing concerns about supply shortages, OPEC+ output underperformance and the global economic reopening likely kept crude oil prices elevated.
Top-tier economic event risks include the ECB, BoC, and BoJ rate decisions for the Euro, Canadian Dollar and Japanese Yen respectively.
Traders will continue watching how central bankers are viewing inflationary trends. The first estimate of third-quarter US GDP will also cross the wires and is expected at 2.7% q/q, far lower than the 6.7% outcome in Q2.
All eyes will shift towards Core PCE data on Friday, which is the Fed’s preferred gauge of inflation. A slew of highly-anticipated tech earnings is also expected to cross the wires such as Amazon, Apple, and Facebook. This leaves risk appetite vulnerable should these disappoint.
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