Banque Bemo L : Daily Markets Brief

Daily Market Brief

July 15th 2024

FOREIGN EXCHANGE MARKETS

(Sources: Bloomberg / Reuters)

EUR/USD

The EUR/USD pair attracts some sellers around 1.0885 during the early Asian session on Monday. The major pair edges lower amid risk aversion, triggering a fresh bid of the USD. The wholesale inflation in the US, as measured by the PPI came in slightly higher than expected. However, the attention remains on the recent cooler CPI inflation, which raised expectations for a rate cut.

GBP/USD

The GBP/USD pair attracts some selling during the Asian session on Monday and for now, seems to have snapped a three-day winning streak to around 1.3000. The attack on US Presidential candidate Donald Trump on Sunday raises the level of political uncertainty and drives some haven flows, allowing the USD to recover a part of Friday's slump to over a three-month low.

USD/JPY

The JPY edges lower on Monday as the USD strengthens amid rising risk aversion triggered by the attempted assassination of former US President Donald Trump on Saturday.It is estimated that Japanese authorities may have spent between ¥3.37 to ¥3.57 trillion on Thursday to stem the rapid depreciation of the JPY.

INTERNATIONAL EQUITY MARKETS

(Sources: Bloomberg / Reuters)

UNITED STATES OF AMERICA

The Dow Jones Industrial Average soared Friday on the back of gains in Home Depot and Caterpillar as investors started to embrace some stocks outside of the technology bull market leaders. A reading of wholesale inflation came in slightly hotter than expected on Friday, but Wall Street largely ignored those figures after Thursday's more important consumer prices report showed slowing inflation.

EUROPE

European stocks were buoyant Friday, closing higher as investors assessed fresh U.S. inflation data. Telecom stocks rose 0.59% with Ericsson among the top gainers, initially rising more than 8% before cooling.

ASIA

Japan's Nikkei 225 led losses in Asia on Friday, snapping a three-day winning streak and plunging over 2% after hitting a record high in the previous session. Early Friday, the yen suddenly strengthened against the dollar after the U.S. inflation data release, prompting analysts and traders to suspect a possible intervention from the country's ministry of finance.

MUST READ

(Source: Bloomberg/ Forexlive)

Google reportedly in advanced talks to acquire cyber startup Wiz

Google is in advanced talks to acquire cybersecurity firm Wiz for $23 billion, The Wall Street Journal reported Sunday, citing people familiar with the matter. The people familiar told the Journal that a deal could come soon. Wiz was founded in 2020, and has grown at a rapid clip under CEO Assaf Rappaport. It had been eyeing an IPO as recently as May, when the company achieved a valuation of $12 billion. A representative for Wiz declined to comment. Wiz's cloud security offering gives executives and cybersecurity professionals insight into the company's full cloud presence, something appealing to large firms with significant computing resources. It is backed by a roster of blue chip firms, including Israeli VC firm Cyberstarts, Index Ventures, Insight Partners and Sequoia Capital. If completed, the deal would be Google's largest ever acquisition. It would also underline a clear and continued bet on cybersecurity, at a time when nation state and criminal actors have managed to disrupt governments and large organizations. Google has made large cyber acquisitions before: The company acquired cybersecurity firm Mandiant for $5.4 billion two years ago. But the company now faces unprecedented levels of antitrust scrutiny. The Justice Department has sued Google twice on antitrust grounds. The company's acquisition practices were highlighted in the most recent litigation, filed in 2023. But its reported talks with Wiz would suggest that the company has developed a fresh appetite for M&A, competitive concerns notwithstanding. Google had been in talks to acquire sales software maker Hubspot, CNBC previously reported cooled.

Fx rates	Last	High	Low	% Daily	% Weekly	% YTD
GBP-USD	1.2975	1.2984	1.2958	-0.10	1.31	1.92
USD-JPY	157.96	158.42	157.81	0.08	1.82	-10.71
USD-CHF	0.8954	0.8972	0.8940	0.11	0.26	-6.03
Commodities	Last	High	Low	% Daily	% Weekly	% YTD
Silver	30.81	31.01	30.57	0.06	0.14	29.46
Crude Oil	82.27	82.58	81.61	0.07	-0.07	14.76
Bitcoin	62762.19	62996.89	60054.33	4.40	9.33	47.65
Etherium	3333.85	3347.35	3200.11	4.15	7.68	46.07

Period		1 M	3 M			12 M
EURIBOR
SOFR		5.33	5.29			4.87
US Fed Fund Rate (Indicator)		5.31
Notes/Bonds		2 Y	10 Y			30 Y
US		4.47	4.23			4.45
BTP - BUND		0.48	1.30			1.71
GILTS		4.09	4.11			4.62
Index	Close	% Daily	% M	YTD	Futures	3D % Change
S&P	5615.35	0.55	3.38	17.73	5678.25	0.69
Nasdaq	18398.45	0.63	4.01	22.56	20601.50	0.79
DJ EuroStoxx50	5043.02	1.34	4.21	11.54	5059.00	0.86
FTSE 100	8252.91	0.36	1.30	6.72	8258.00	0.12
CAC 40	7724.32	1.27	2.95	2.40	7665.00	0.46
DAX	18748.18	1.15	4.14	11.92	18858.00	0.92
IBEX 35	11250.60	0.72	2.35	11.37	11263.60	0.60
FTSE MIB	34580.52	0.76	5.86	13.93	34749.00	0.75
Nikkei	41190.68	-2.45	6.12	23.09	41210.00	-2.74
Hang Seng	18293.38	-1.31	0.62	5.90	18070.00	1.20
DFM General	4103.93	0.32	3.02	1.09	N/A	N/A
MSCI Tadawoul	11881.55	0.76	3.33	-0.72	N/A	N/A
	PRIOR_CLOSE_MID		CHG_PC CHG_PC CHG_PCT_
Leb. Mrkts	Closing Px	High	Low	% Daily	% Weekly	YTD
Solidere B	71.00	72.00	67.65	5.34	5.19	-21.07
		MAIN WEEKLY EARNINGS
Company	Ticker	Market Cap	Date	Time	Estimate	Year Ago
Goldman Sachs In	GS US	$ 160.29B	15-Jul-24	Pre-mkt	8.36	3.08
Blackrock Inc	BLK US	$ 123.84B	15-Jul-24	Pre-mkt	9.93	9.28
Bank of America	BAC US	$ 325.25B	16-Jul-24	Pre-mkt	0.80	0.88
Morgan Stanley	MS US	$ 169.16B	16-Jul-24	Pre-mkt	1.65	1.24
Charles Schwab	SCHW US	$ 137.81B	16-Jul-24	Pre-mkt	0.72	0.75

ECONOMIC CALENDAR

(15-07-24) US - Empire Manufacturing

(16-07-24) DE - ZEW Survey Expectations

(16-07-24) CA - CPI NSA MoM

(17-07-24) UK - CPI MoM / YoY

(17-07-24) US - Housing Starts

(17-07-24) EA - CPI YoY / MoM / Core YoY

(17-07-24) US - Industrial Production MoM

CONTACT	Banque BEMO sal
Asset Management Unit

Ashrafieh, Elias Sarkis Ave., BEMO Bldg, 4th Floor P.O.Box 16-6353 Beirut, Lebanon

Tel: [phone]

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