Morning wrap (16.07.2025)

Wall Street closed mostly in the red yesterday despite very strong quarterly results from key banks. The technology sector managed to avoid the declines and supported U.S. indices, buoyed by news of export licenses for advanced AI chips to China (Nasdaq: +0.18%, S&P 500: -0.4%, Dow Jones: -1%, Russell 2000: -2%).

Futures for the US indices are trading flat, while EU50 is down 0.3%,

A similar dynamic and mixed sentiment can be observed in the Asia-Pacific region. The broad MSCI Asia Pacific Index is currently down 0.1%, dragged down by losses in Australia (S&P/ASX 200: -0.8%), South Korea (Kospi: -0.9%), and India (Nifty 50: -0.25%). On the upside, China’s HSCEI is up 0.2% and Japan’s Nikkei 225 is up 0.5%.

Baidu shares are up 5% on the Hong Kong stock exchange after announcing a long-term partnership with Uber to launch autonomous taxis in Asia, Europe, and Oceania.

According to Dallas Fed President Lorie Logan, the U.S. central bank will likely need to maintain higher interest rates for longer in order to contain the current rebound in inflation. Logan emphasized that one shouldn't focus on single data points and that rate cuts may come if inflation eases alongside the labor market. Yields on 30-year U.S. Treasuries remain slightly above 5%.

Donald Trump announced on social media that the US “will probably make 2 or 3 trade deals before August 1.” The U.S. President also announced a deal with Indonesia, which reportedly includes eliminating all tariffs on U.S. products and a commitment to purchase more American goods, including Boeing planes, in exchange for a 19% tariff rate.

On the forex market: the U.S. dollar index halts its recent gains (USDIDX: -0.1%), edging down against all G10 currencies. The biggest gain is by the Australian dollar (AUDUSD: +0.17%), followed by the euro (EURUSD: +0.15% to 1.1618). Safe-haven flows are boosting the Swiss franc (USDCHF: -0.06%), while the yen is trading flat.

On the precious metals market, there is widespread optimism: gold is up 0.4% to $3,337 per ounce, silver is up 0.35% to $37.84 per ounce, platinum is rebounding 1.7%, and palladium futures are also in the green (+0.8%).

Major cryptocurrencies are rebounding after recent profit-taking: Bitcoin is up 1.3% to $117,980, and Ethereum is up 3.4% to $3,146.