Generally bullish global stock markets helped push the US S&P 500 and NASDAQ 100 indices to new all-time highs today; so did the Japanese Nikkei 225 index, with an unusually large price movement.
➡️ Despite yesterday being a Monday, which is usually a relatively quiet day in the capital markets, we saw stock markets continue their bullish moves towards new all-time highs. The rally followed into today's Asian session, with stocks trading near their highs near the Tokyo close. We are seeing new all-time high prices in the index NASDAQ 100 and in the broadest S&P 500 index which rise strongly towards new all-time highs on Friday. Most global stock indices are bullish, with Japan again in focus today, as the index Nikkei 225 rose very strongly to close at a new record not far from 42,000. The Japanese TOPIX also rose very strongly today and is close to its all-time high. These are bullish signals for stocks and trend traders will want to get involved here on the Long side.
➡️ Fed Chair Jerome Powell will testify on the semiannual monetary policy report before the Senate Banking Committee later today.
➡️ In the Forex market, the Australian dollar is the strongest major currency since the Tokyo opening, while the Swiss franc and Japanese yen are the weakest, highlighting the AUD/JPY currency pair . The US dollar has fallen significantly this past week, but is approaching a support level and remains within a valid long-term uptrend. It has refused to fall substantially since the markets opened this week.
➡️ US consumers' short-term inflation expectations fell for the second straight month, which should help weaken the US dollar and boost US stock markets as it provides ammunition for the case for a rate cut by the Federal Reserve Reserve. The CME FedWatch tool now indicates that 77% expects a rate cut of 0.25% at the Fed's September meeting, up from just 63% a few days ago.
Credit by DailyForex.com
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