Major Indices Struggle to Recover After Tuesday’s Decline

By Tomasz Wisniewski|

Published: July 10 2024, 08:11 GMT+0

Major Indices Struggle to Recover After Tuesday’s Decline

Good morning, traders. Today’s market opens with a flurry of activity. Early reports showed China’s inflation dipping to 0.2%, missing the 0.4% forecast. Meanwhile, New Zealand held its interest rate at 5.5%, but the bearish outlook on inflation has weakened the NZD, making it the weakest currency today. In contrast, the British Pound and Swiss Franc are performing strongly.

Yesterday saw a downturn for major indices like Dow Jones, NASDAQ, DAX, and FTSE. Today, these indices are attempting to rebound, though significant losses, particularly in DAX and FTSE, suggest a challenging recovery ahead, with the possibility of new mid-term lows looming.

Commodities are also making headlines. Oil continues its downward slide, with WTI crude falling from $84 to $80 per barrel since July 5th. Meanwhile, precious metals are on an upswing, with gold and silver climbing higher today, highlighting a divergence between energy commodities and precious metals.

Looking ahead, Federal Reserve Chair Jerome Powell will continue his testimony today, which could impact market movements. Tomorrow, the focus will shift to UK GDP and the crucial US inflation data, both of which are likely to influence trading decisions involving the American dollar. Stay tuned for what promises to be an eventful Wednesday.