Image Source: Pixabay  The EUR/USD currency pairTechnical indicators of the currency pair: Prev Open: 1.0694 Prev Close: 1.0729 % chg. over the last day: +0.33 % Fears of stagflation pressured the dollar on Thursday after the revised US GDP for the first quarter showed slower-than-expected economic growth and persistent price pressures. In turn, the euro found support after Germany’s May GfK Consumer Confidence Index rose more than expected to a 2-year high. The March PCE Price Index inflation report will be released in the US today. The annualized PCE Index is expected to rise from 2.5% to 2.6%. A monthly increase of 0.3% is e...
After opening the day on a high note, Indian share markets reversed the trend as the session progressed and ended lower.After starting higher on Friday, equity markets had an anti-climatic end today dragged by Bajaj Finance, Bajaj Finserv. Â Why Indian Share Market is Falling?Indian benchmarks were impacted by the US market which fell after the country’s GDP grew at a slower-than-expected pace and showed persistent inflation. In the March quarter, the US economy grew at its slowest pace in nearly two years. Rising inflation moderated hopes that the US Federal Reserve would begin cutting interest rates this year.At the closing bell, theÂ...
Image Source: Pexels  Quarterly inflation data surprised to the upside and led the market to brace for a very unpleasant MoM print today. Thankfully it was due to upward revisions, primarily to January, with the March figure coming in line with initial expectations. Nonetheless, inflation remains too hot and September remains the earliest opportunity for an interest rate cut.  US inflation remains hot, but not as hot as fearedSo the core PCE deflator has indeed come in at 0.3% month-on-month, with upward revisions to January and February, rather than the 0.48% MoM implied by the quarterly PCE deflator from yesterday, assuming no revisions...
Alphabet and Microsoft posted strong Q2 earnings driven by AI and cloud computing. Stocks surge in premarket trading today.lphabet Inc. (GOOG) and Microsoft (MSFT), two of the world’s largest technology companies, have reported strong second-quarter earnings driven by their investments and advancements in artificial intelligence (AI) and cloud computing.Both companies surpassed Wall Street expectations, with Alphabet reporting a revenue of $80.54 billion and an adjusted EPS of $1.89, while Microsoft posted a revenue of $61.86 billion and an EPS of $2.94.The impressive results have led to significant gains in their respective stock pri...
Image Source: Unsplash  MSFT Elliott Wave Analysis Trading Lounge Daily ChartMicrosoft Inc., (MSFT) Daily ChartMSFT Elliott Wave Technical AnalysisFUNCTION: Counter TrendMODE: CorrectiveSTRUCTURE: ZigzagPOSITION: Intermediate (2)DIRECTION: Bottom in wave A of (2).  DETAILS: We are considering a significant top in place with wave (1), and we are now looking for a three wave move correction into wave (2). We seem to be finding buyers on Medium Levell 400$, looking for 400$ to turn into resistance.  MSFT Elliott Wave Analysis Trading Lounge 4Hr ChartMicrosoft Inc., (MSFT) 4Hr ChartMSFT Elliott Wave Technical AnalysisFUNCTION: Counter ...
Gold is extending its rebound off the $2300 psychological level!Even so, the precious metal appears to be on the cusp of ending a 5-week winning streak. Gold’s recent rebound suggests that demand for the safe haven asset still offsets the lowered expectations for Fed rate cuts in 2024. From a technical perspective, bullion appears to be guided upwards from a crucial support level: the 21-day simple moving average (SMA).The latest US GDP figures have ramped up stagflation fears and may have boosted safe haven demand.However, recent gains may prove fleeting.Later today (Friday, April 26th) at 12:30 GMT, the US is due to release...
Image Source: Unsplash  Microsoft Spikes HigherShares in tech giant Microsoft are trading higher today ahead of the US open after the group posted another stellar set of results last night for Q1. This marks the seventh straight quarter of earnings growth for Microsoft. On the headline numbers, Microsoft posted Q1 EPS of $2.94 vs $2.84 expected on revenues of $61.86 billion vs $60.86 billion expected. Year-on-year, the company saw its revenues jumping by 17%. The standout gains for Microsoft came from its cloud services which recorded a 31% surge in revenues, well above Wall Street forecasts.  AI GainsThe company has been investing heavily...
Meta shares fell almost 20% following a better-than-expected earnings report. The day before, Tesla shares rose 15% despite missing earnings and sales estimates and reporting a massive decline in its free cash flows. The sections below provide more specifics on Meta and Tesla earnings. Their earnings are important for investors, but it is equally critical to appreciate how the intersection of technicals and narratives plays into their confusing stock performance.Tesla shares are down 33% year to date, including the 15% increase on Wednesday. The narrative pushing the stock lower was that the EV industry is losing ground to hybrid models. Sign...
With inflation data surprising to the upside recently…Source: Bloomberg…the doves’ last chance for sooner than later rate cuts is today’s Core PCE Deflator – often described as The Fed’s favorite inflation signal. Last month saw an uptick in the headline deflator and following yesterday’s core PCE rise for Q1, all eyes are on the March data released this morning.However, both the headline and core PCE Deflator data printed hotter than expected (+2.7% vs +2.6% exp vs +2.5% prior and +2.8% vs +2.7% exp vs +2.8% prior respectively)…Source: BloombergThe silver lining is that this hot PCE print is ...
Yesterday’s first-quarter GDP report delivered a one-two punch for markets: slower-than-expected growth and hotter-than-expected inflation. In reaction, stocks fell and US Treasury yields rose. At first glance, the risk-off response looks reasonable. But a closer look at the GDP numbers still leaves room for debate.Let’s start with the offending data that sent markets into a tailspin: the personal consumption expenditures price index excluding volatile food and energy prices, a.k.a. core PCE, which is said to be the Federal Reserve’s preferred inflation metric. On an annualized basis in Q1 this metric turned up sharply, rising 3.7%, abo...