Author: FX
The second version of the U.S. GDP reading was upgraded to show a faster 3.0% expansion in Q2 2024 versus the initially reported 2.8% figure. This also reflected a significant acceleration in economic growth compared to the Q1 2024 GDP of 1.4%. The positive revision to the preliminary GDP reading mostly came from higher consumer spending on services and goods, particularly gasoline and other energy commodities. Components of the report, however, revealed that non-residential fixed investment, exports, and private inventory investment were downgraded. Link to U.S. Preliminary GDP for Q2 2024 Meanwhile, the preliminary price index for the same period…
The European Central Bank (ECB) policymaker Joachim Nagel said on Thursday that the ECB should avoid lowering interest rates too fast because it has yet to bring inflation down to 2% even if that goal is now in sight, per Reuters. Key quotes There is the risk that a somewhat stronger recovery could delay a return to the inflation target.While our 2% target is in sight, we have not reached it.A timely return to price stability cannot be taken for granted. Market reaction At the time of press, the EUR/USD pair was up 0.04% on the day at 1.1082. ECB FAQs The European…
By Savyata Mishra (Reuters) – Lululemon Athletica (NASDAQ:) cut its annual sales and profit forecasts on Thursday, hurt by increased competition and selective consumer spending in North America for its pricey leggings and tank tops. Its shares, which have lost nearly half of their value this year, reversed early losses to rise 2.3% after the bell, as second-quarter profit beat Wall Street expectations. The company has seen a slow start to 2024 as sales moderate after years of strong growth as persistent inflation led to selective spending by shoppers. “This was a rare miss for Lululemon and reflects missteps in…
Sterling has reached its highest level against the U.S. dollar in about two and a half years and is also doing well against the euro. The pound’s rally is largely driven by speculative bets on interest rates based on expectations that the Bank of England (BoE) will maintain higher interest rates for a longer period compared to the Fed and ECB. But this makes sterling vulnerable to shifts in monetary policy expectations, and this surge could quickly unravel in markets still unsettled by early August’s turbulence. Additionally, sterling’s strength is being supported by economic difficulties in the eurozone and emerging…
The closing changes look small but it was certainly a lively day in North American equity markets. It looked bleak in the pre-market yesterday after Nvidia earnings but the market later shook it off and opened slightly higher. That was followed by some strong buying that ultimately flopped as heavy afternoon sellers hit and ultimately left the Nasdaq slightly lower.Closing changes:S&P 500 flatNasdaq Comp -0.2%Russelll 2000 +0.7%DJIA +0.6%Toronto TSX Comp +0.5% This article was written by Adam Button at www.forexlive.com. Source link
The Dow Jones rose 450 points on Thursday as sentiment recovered. US GDP figures bolstered investor confidence after printing above expectations. US PCE inflation numbers still loom ahead on Friday. The Dow Jones Industrial Average (DJIA) rose 1.1%, or 450 points, on Thursday, buoyed by a forecast beat in US Gross Domestic Product (GDP) growth numbers in Q2. US Personal Consumption Expenditure Price Index (PCE) inflation data, due on Friday, is still the key print of the week. Markets remain confident that the Federal Reserve (Fed) is on pace to kick off a rate-cutting cycle in September. An afternoon pullback…
(Reuters) -Gap on Thursday surpassed Wall Street expectations for the second quarter, after a surprise early announcement of its results showed picky shoppers turned to its Old Navy and namesake brands to snap up trendy and fashionable clothing. Shares of Gap were up 3%, after being halted earlier in the day following a Bloomberg News report that the apparel retailer’s earnings press release and presentation appeared on its website in the morning. Gap, which was scheduled to report the results after the bell on Thursday, did not respond to a Reuters request for comment. The Banana Republic owner is in…
Prior was +4.8%Index 70.2 vs 74.3 prior (lowest ever)The index shows how far pending home sales have fallen. There was a big jump last month but it’s right back into the doldrums now and below the pandemic lows.pending home salesAccording to NAR Chief Economist Lawrence Yun, “A sales recovery did not occur in midsummer. The positive impact of job growth and higher inventory could not overcome affordability challenges and some degree of wait-and-see related to the upcoming U.S. presidential election.”Regionally, the midwest and south r Source link
The Pound Sterling skids below 1.3200 against the US Dollar after US Q2 GDP upwardly revised to 3%. Traders focus on US core PCE inflation data for July as it can influence market speculation about the Fed’s rate cut size. Investors see the BoE delivering one more interest rate cut this year. The Pound Sterling (GBP) weakens against the US Dollar (USD) and declines below the key support of 1.3200 in Thursday’s New York session. The GBP/USD pair slumps as the US Dollar (USD) extends its Wednesday’s recovery move on an upbeat second estimate of the United States (US) Q2 Gross Domestic Product (GDP) data. The…
Birkenstock (NYSE:BIRK) shares are trending lower ahead of Thursday’s market open as the footwear company’s latest quarterly results were below Wall Street’s expectations, missing both profit and sales estimates. While the company achieved a quarterly record revenue of €565M ($608.2M), up 19% year-over-year, it fell short of estimates of €569.32M ($631.7M). An adjusted profit of €0.49 was also below expectations of €0.52. Adjusted EBITDA increased 15% to €186M, but the adjusted EBITDA margin fell 140 basis points year-over-year to 34.4%. Birkenstock’s (BIRK) gross profit margin dropped 220 basis points to 59.5% due to the temporary impact of production capacity expansion…