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Markets celebrate anticipated rate cuts
Investors will be closely monitoring the ECB's press conference for hints about additional rate cuts later this year
Gold prices at two-week high around $2,375 per ounce
The S&P 500 and Nasdaq 100 reached new historic highs
After sharp declines, U.S. bond yields are beginning to recover
ECB Interest Rate Decision
The primary focus today is on the European Central Bank (ECB) and its anticipated interest rate decision. The consensus among market analysts is a 25 basis point reduction, bringing the rate to 4.25%. This follows a similar move by the Bank of Canada, which cut its rates yesterday. With the rate cut largely expected and priced in, the spotlight will shift to the subsequent press conference. Traders will be keenly listening for any indications of additional rate cuts that might be implemented later in the year.
US Markets
US Indices: U.S. stock markets saw robust gains in the previous session, with both the S&P 500 and the Nasdaq 100 closing at new all-time highs. This rally reflects strong investor confidence and positive market sentiment.
Bond Yields: Following a sharp decline, U.S. bond yields are beginning to rebound.
Jobless Claims: Weekly jobless claims remain a crucial metric for assessing the labor market's health. Initial claims are expected to come in at 215,000, slightly down from the previous 219,000. Continuing claims are projected at 1,790,000, marginally lower than the previous week's 1,791,000.
Stock Indices: Asian markets followed Wall Street's lead, posting gains in their latest sessions. This upward trend reflects a positive spillover from the strong performance of U.S. equities.
Commodities
Gold: Gold prices continue to rise, hitting a two-week high around $2,375 per ounce during the European session. The bullish sentiment is driven by expectations that major central banks, including the Bank of Canada and the ECB, will lower interest rates to stimulate economic growth. The Bank of Canada's recent rate cut, its first in four years, highlights growing concerns over economic slowdown, reinforcing the bullish outlook for gold.
Oil: West Texas Intermediate crude oil prices are also on the rise, trading around $74.30 per barrel during today's session. The price increase is linked to speculation that the U.S. Federal Reserve might cut interest rates in September, which would likely boost economic activity and, by extension, oil demand.
