Microsoft hits all time highs amid strong earnings report
US Michigan Inflation expectations hit 3 years high
NY Fed Chief William dovish wording commented as "academic"
The last trading day of the week ends with market taking a step back after last night roller coaster-ride spurred by comments from Federal Reserve of New York William. Probability of a 25/50 bbp cut is now a 50-50 split for the 31th July meeting. Market reaction overall is relatively mixed with the EUR being the only reversing gains from yesterday after derail of dovish wording. The rest of US assets traded flat with Equities and Treasuries trading mainly range bound looking ahead for clearer signals of whether the next cut will be just precautionary or the start of a new easing cycle.
US Equity Indices traded flat amid rate cut expectations confusion as traders await next week US GDP and Core PCE Inflation. SP500 closes the first week of the month in negative dragged by mixed earnings and lack of clarity over number of cuts delivered by the FED this year.
On the FX front, the USD Index trade firmer above the 96 level amid stronger than expected US Michigan Inflation expectations and increases traders confidence that global central bank will pursue interest rate cuts after the FED in July.
Crude Oil traded consolidated above the 55 level a weekly slump of $10 printing the worse weekly performance since May 2013. Gold retraced some of yesterday's gain amid a firm USD some profit taking after hitting a new
Global Yields traded mix with the Italian 10Y rebounding amid coalition government renewed tensions.
If you missed the morning briefing from the desk click HERE