Here's the latest market news, hand-curated by our research team.
The Big Story
Tesla delivered 254'695 cars worldwide in the second quarter, but missed analyst expectations of 261'181. The company had a tough quarter due to a shutdown of its Shanghai factory and supply chain challenges. But, Musk said earlier this year that he expects Tesla to expand production to more than 1.5 million vehicles this year in an internal memo. The delivery data is an indicator for Tesla's financial performance and is widely seen as a barometer for EV demand.
•FOMC minutes should tell investors more about the Fed's thinking about its timeframe and path of raising rates.
• European and US macro data will offer clues about the strength of the economic momentum. The US wages data could signal the extent of inflation pressure.
• Gold will also attract traders' attention as the bullion's price briefly slid below the USD1'800 support level last Friday.
Economic data this week
• FOMC meeting minutes
• US factory orders, ISM non-manufacturing PMI, JOLTs job openings, trade balance, nonfarm payrolls, unemployment, hourly earnings, 30-year mortgage rate
• EU PPI, Sentix investor confidence, service PMI, retail sales
• German trade balance, industrial production, factory orders
Earnings this week
• Sainsbury's, Aeon ADR, Bang&Olufsen, LDC, Industrivarden, Seven i ADR, Levi Strauss, Suedzucker
Crypto
• Bitcoin posted a record monthly drop of 37% in June. It rallied as much as 11.3% on Friday morning, before giving up most of the gains as uncertainty around central banks tightening continues to weigh on sentiment.
• According to the crypto platform, BitInfoCharts, the richest Bitcoin wallet bought 4'816 BTC over the past month, spending over USD102 million. Whales currently own as much as 45.6% of Bitcoin's total supply.
Stocks suffered another week of losses, with Friday's gains only trimming weekly declines. The S&P500 fell 2.2% on the week and nearly 20% year-to-date, the worst first-half since 1970. Meanwhile, Treasuries surged last week as poor economic data added to recession fears.
Semiconductors (SMH, -3.8%) plunged following disappointing Micron's earnings and Intel's cutting PC chip prices. In commodities, oil ended the week 1% lower, though rose on Friday as export disruptions in Libya worsened supply concerns, and copper tumbled to a 17-month low.
This morning, US futures are slightly pulling back in a quiet session as sovereign bonds are surging on economic growth worries. US stock and bond markets are shut for Independence Day.
Chart Of The Day
EURCHF hit parity again on worsening eurozone economic conditions and a motivated Swiss National Bank. The SNB said the Swiss Franc is no longer highly valued due to recent depreciation, suggesting less intervention in the forex market.
FlowBank Blog
Has the dollar finally topped?
The US Dollar has had a very busy year. Following an 11% rally off the initial lows in January, we then saw an almost 4% correction before the greenback found fresh demand and rallied a further 4.5% taking the Dollar Index up to further, fresh, multi-year highs. Traders are questioning whether the dollar is topping out.
This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this email in error, please notify us immediately, and delete it from your system. If you are not the intended recipient, you are notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited. Although we scan attachments, we advise you to carry out your own virus check before opening any attachment.