Central Bank Decisions and Earnings: Thursday’s Market Pulse

By Tomasz Wisniewski|

Published: July 27 2023, 05:55 GMT+0

Central Bank Decisions and Earnings: Thursday’s Market Pulse

Welcome to Thursday’s market update, where the central theme revolves around the monetary policy decisions from major central banks and their subsequent impact on the markets.

The Old Calendar – Wednesday Review: Australia kicked off Wednesday with its inflation data release. Quite surprisingly, the numbers missed expectations with a quarterly figure of 0.8% against the anticipated 1%. This lower than expected inflation puts a damper on the chances of tighter monetary policy in the near term. As a result, the Australian dollar faced headwinds and was labeled the day’s weakest currency.

The U.S., however, was at the epicenter of the financial world’s attention with the Federal Reserve’s interest rate decision. Sticking to expectations, the Fed increased rates by 25 basis points, bringing the current rate to 5.5%. This was accompanied by a detailed statement and a press conference, offering deeper insights into the Fed’s current economic outlook.

What’s on the Plate for Thursday: All eyes now turn to the Eurozone as it gears up for its own interest rate decision. A 25 basis points rise is widely anticipated. Alongside this, market participants will keenly watch for the U.S. GDP figures and the routine unemployment claims data. To wrap up the day, the European Central Bank’s press conference will likely dominate headlines, shedding light on the bank’s views on the current economic scenario.

Currencies in Motion: While the Australian dollar experienced a downtrend post its inflation data, the USD didn’t fare much better, ending Wednesday on a softer note. As we transition into Thursday, the greenback continues its weak performance. However, in a surprising turn, both the Australian and New Zealand dollars are showing resilience and currently lead the pack as the strongest performers.

Indices Insight: Stock indices remain optimistic, hovering near long-term highs. Notably, NASDAQ presents a compelling scenario as it makes a rebound off its long-term support line. This dynamic sets the stage for potential bullish positions for investors and traders alike.

Commodities Corner: The commodities sector is exhibiting strength, with silver taking the spotlight. After successfully defending its critical level at $24.5 per ounce, a bullish signal is now activated, indicating potential upside.

Earnings Season Continues: In corporate America, the earnings season is in full swing. Meta Platforms and Coca-Cola exceeded market expectations with their recent announcements. As we proceed through Thursday, market participants will be tuning in for earnings updates from heavyweights such as MasterCard, McDonald’s, and Intel. Notably, Intel’s announcement is scheduled post-market close, so traders should be prepared for potential volatility in the stock during Friday’s trading session.

Source: https://www.axiory.com/analytics/market-news/central-bank-decisions-and-earnings-thursday-s-mar