Will earnings support stocks?
Important news this week
Wed, 05th Aug 00:45 CET NZ Unemployment Rate.
Fri, 07th Aug 14:30 CET US NFP Report.
Fri, 07th Aug 14:30 CET CA Unemployment Rate.
Risk-on momentum builds as equities eye fresh highs
Risk appetite continues to improve, with US equities extending their recovery. The S&P 500 is approaching a major resistance zone around 7,650 points, and a successful breakout could trigger another leg higher. The Nasdaq is also moving higher, supported by resilient investor sentiment, although this week's corporate earnings will be key in determining whether the rally has enough momentum to continue. Strong results from major technology companies could provide the catalyst for fresh record highs.
The US Dollar remains broadly weak but is attempting to stabilize after recent losses. While downside momentum has slowed, there are few signs of a sustained recovery yet. In FX markets, the Japanese Yen is beginning to lose some of its recent strength, which could allow USDJPY to rebound if US yields stabilize. The Australian Dollar remains firm, reflecting the constructive tone in global markets.
Market talk
Cryptocurrency markets remain relatively quiet despite the positive equity backdrop. Bitcoin is trading sideways, while most major altcoins are also lacking momentum. One notable exception is Cardano (ADA), which continues to outperform and attract renewed buying interest. The key themes this week remain corporate earnings, US economic data, and whether the S&P 500 can confirm a breakout above resistance. If earnings continue to surprise to the upside, the current risk-on rally may have further room to run despite lingering uncertainty around the US Dollar.
Tendencies in the markets
- Equities positive, USD stronger, crypto sideways, oil weak, Silver sideways, Gold sideways.'
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