Market analysis on July 26

After the US inflation data was released, US stocks closed higher across the board last Friday, which helped ease the market's expectations of interest rate cuts. Both the S&P 500 and Nasdaq indices have successfully stopped their continuous downward trend, although this is still the first time in nearly three months that they have declined for two consecutive weeks. The Dow Jones Industrial Average closed higher for four consecutive weeks, showing a relatively strong performance. Under the influence of the US core personal consumption expenditure (PCE) price index, US Treasury yields fell rapidly, and both ten-year and two-year yields hit one-week lows, reflecting the strong expectations of the market for future interest rate cuts.

The yen and the renminbi performed strongly last week, especially the yen, which rose more than 2% throughout the week, the biggest weekly gain in more than two months. Meanwhile, there were positive developments in the cryptocurrency market, with the price of Bitcoin climbing above $0.068 million, while Ethereum continued to be under pressure after experiencing a sharp decline last week.

The earnings season continues to influence stock market dynamics. In particular, tech giants' performance announcements have a significant impact on market sentiment. Tesla and Google did not perform well after last week's earnings report, and their stock prices plummeted by more than 8% and 6%, respectively. More tech giants such as Microsoft, Apple, and Meta will release earnings reports this week, and the market will keep a close eye on the possible impact of these reports.

In the commodities market, crude oil and gold prices fluctuated. The price of crude oil was close to a six-week low, while gold rebounded on Friday. This week, the global financial market will face many important events and the release of economic data, including the central bank decisions of the US, the UK, and Japan, as well as the US non-farm payrolls report, which may have a significant impact on the market.

In the Asian market, A-shares closed higher amid the turbulence, while the US-listed Chinese securities index also rebounded, stopping the previous continuous decline. Meanwhile, the offshore renminbi showed a certain upward trend after a week of fluctuations.