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Afternoon Market update, July 26, 2023, Learn Forex Trading UK

Good afternoon, traders and multi-asset watchers!

Today marks a crucial day in the financial markets as the Federal Reserve gears up to announce its interest-rate decision at 7 p.m. GMT. Investors worldwide are on the edge, eager to decipher the central bank's signals and adjust their strategies accordingly.

stop sign on a street written in yellow
Is the Fed going to pause again or is the 0.25 rise a gimme

๐Ÿ’น Rate Outlook Pushes Stocks Down ๐Ÿ’น

Anticipation of another interest rate hike is casting a shadow over US tech stocks, causing the Nasdaq 100 index to slip 0.4% in premarket trading. The combination of disappointing earnings in the tech sector and the prospect of further rate increases from the Federal Reserve is dampening investor sentiment.

๐ŸŒŽ Global Markets React ๐ŸŒŽ

The impact of the Fed's pending decision is not limited to US markets alone. The Stoxx Europe 600 Index is down nearly 1%, with European giant LVMH experiencing a significant slump of up to 5.4%. Signs of a spending slowdown among wealthy US consumers are affecting European companies as well.

 Stoxx Europe 600,  index Bar chart showing forex and commodities prices, green/red candles depict daily trading trends. Includes moving average, Bollinger bands, and RSI.

๐Ÿ“Š Market Indicators Reflect Uncertainty ๐Ÿ“Š

As investors await the Fed's announcement, various market indicators are displaying cautiousness. Contracts tied to the S&P 500, Nasdaq-100, and the Dow are slightly lower in premarket action. Meanwhile, US bonds have gained, pushing the benchmark 10-year Treasury yield marginally lower.

๐Ÿ›ข๏ธ Oil Prices Give Back Gains ๐Ÿ›ข๏ธ

Traders are bracing for the possibility that the Fed might signal the need for additional measures to control inflation. As a result, global crude benchmark Brent is slipping after four consecutive sessions of gains, with expectations for energy demand potentially being impacted.

๐Ÿ“ˆ Earnings and Insights ๐Ÿ“ˆ

The day's focus lies on notable earnings reports from Facebook parent Meta (META), Chipotle (CMG), and Mattel (MAT). Despite the challenges, approximately 80% of US companies have thus far beaten profit estimates, while Europe has seen similar positive outcomes.

๐Ÿ’ฌ Analyst Perspectives, Learn Forex Trading UK ๐Ÿ’ฌ

As uncertainty lingers, analysts suggest that markets may experience a 5%-10% pullback before eventually embracing a "risk-on" sentiment. While the US economy displays signs of weakness, it may not warrant a full rate cut next year, keeping investors on their toes.

๐Ÿ‘‰ What's Next? ๐Ÿ‘ˆ

With the Fed's rate decision imminent, staying informed and adaptable is essential for traders and multi-asset watchers alike. As the central bank's actions unfold, Chair Powell's press conference will provide valuable insights into their future course of action.

๐Ÿ“ข Stay Tuned ๐Ÿ“ข

At Chump Profit, we understand the importance of keeping you updated in real-time. As the Fed's decision unfolds, we will continue to bring you the latest market developments and analysis across various asset classes.

Happy trading, and may the markets align in your favour! ๐Ÿš€

Trading and investing carry financial risks and could lead to partial or complete loss of funds. Invest only what you can afford to lose and seek advice from an independent financial advisor if you have doubts about your investment choices.


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