Nike stock plunges 10% on margin fears despite Q2 earnings beat
On Friday, July 6, the US published an ambiguous report on the labor market. In June, the average hourly wage growth slowed down from 0.3% to 0.2%, which caused an aggressive sale of the US currency. The US dollar index (DX) closed in the negative zone (-0.48%). Attention of financial market participants is still focused on trade relations between the US and China. Last week, the countries introduced each other duties on import of goods in the amount of $34 billion. It seems that no one is going to give in, that in turn can lead to a full-scale trade war and negatively affect the markets.
This week, investors expect important economic statistics. On Wednesday, the Bank of Canada will announce its decision on the interest rate. According to forecasts, the interest rate will be increased by 25 basis points to 1.50%. On Thursday, a report on the US inflation will be published. Experts suggest that core inflation for June will grow by 0.2%. This statistics can put considerable pressure on the dynamics of currency majors.
The "black gold" prices are moderately rising. At the moment, futures for the WTI oil are testing a mark of $74.10 per barrel.
Market Indicators
On Friday, the major US stock indices closed in the positive zone: SPDR S&P 500 (NYSE:SPY) (+0.85%), SPDR Dow Jones Industrial Average (NYSE:DIA) (+0.43%), PowerShares QQQ Trust Series 1 (NASDAQ:QQQ) (+1.56%).
At the moment, the 10-year US government bonds yield is at the level of 2.83-2.84%.
The news feed on 2018.07.09:
Today, important economic data are not expected to be published. We recommend paying attention to the speech by the ECB President Mario Draghi.