Japanese stocks rebounded and the yen fluctuated as traders absorbed the BoJ’s interest rate hike and the slowdown in bond purchases. The BoJ raised interest rates to around 0.25% and announced a reduction in bond purchases to about ¥3 trillion ($19.6 billion) per month in Q1 2026. Japanese government bonds pared losses, with analysts having expected a more aggressive cut. The Nikkei 225 index advanced 0.2%, while the yen alternated between gains and losses.Meanwhile, the Australian dollar sank and short-term bonds surged as core inflation unexpectedly declined in the fourth quarter, leading traders to increase bets on a Reserve Bank interest rate cut. Chinese markets rose on growing expectations that Beijing will boost support for its faltering economy. In the US, equities futures rose on speculation that Fed Chair Jerome Powell would hint at a probable rate cut in September. Investors will now be waiting for the Federal Reserve’s decision on interest rates, while the euro zone’s inflation report will be the main economic focus this morning. Quarterly results from major tech firms are highlighting a divide in the AI landscape, with AMD reporting strong earnings but Microsoft disappointing investors with slow cloud growth.HSBC Holdings reported a slight decrease of 0.4% in first-half profit, but still exceeded analyst expectations. The company also announced the appointment of Jonathan Bingham as interim group chief financial officer, effective September 2. Meanwhile, Rio Tinto is considering a significant acquisition, but CEO Jakob Stausholm noted that it would need to offer exceptional value, which is challenging to find in the current hot copper market, as he discussed the company’s first-half results.
Overnight Newswire Updates of Note
(Sourced from reliable financial news outlets)
FX Options Expiries For 10am New York Cut (1BLN+ represent larger expiries, more magnetic when trading within daily ATR)
CFTC Data As Of 23/7/24
Technical & Trade ViewsSP500 Bullish Above Bearish Below 5480
EURUSD Bullish Above Bearish Below 1.09
GBPUSD Bullish Above Bearish Below 1.29
USDJPY Bullish Above Bearish Below 152
XAUUSD Bullish Above Bearish Below 2345
BTCUSD Bullish Above Bearish below 62000
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SP500 Daily Trade Plan
Daily Market Outlook – Tuesday, July 30
