Asian Pacific stock indices mostly higher

US stock indices closed higher on Thursday, with all three major benchmarks extending their weekly gains. The S&P 500 rose 0.5% last night, reaching a new all-time closing high after also hitting an intraday record.

Source: TN Trader

The NASDAQ Composite advanced by 0.8%, closing at a new record level, while the Dow Jones Industrial Average climbed by 0.5%, and it is currently just 0.9% below its own record closing high from December last year. The small-cap Russell 2000 ended 1.2% higher and is now less than 8% below its own all-time closing high from last November.

Stronger-than-expected US economic data buoyed markets. June Retail Sales rose more than anticipated, pointing to resilient consumer spending, while weekly Unemployment Claims fell, easing concerns about a softening labour market. These data points helped underpin optimism around economic momentum heading into the year’s second half.

Investors were also encouraged by the ongoing strength in corporate earnings. Robust quarterly results from several high-profile names added to risk appetite, keeping the major indices on pace to finish the week in positive territory.

After last night’s close, better-than-expected earnings and revenue from Netflix sent the stock higher initially. But these gains quickly evaporated, and the stock reversed course in after-hours trade as investors digested the company’s outlook.  But it’s worth noting that Netflix is still up 40% this year, closing at an all-time high at the end of last month.

Looking ahead, earnings will remain in focus today, with investors set to parse results from 3M, American Express, and Charles Schwab before the opening bell. These names will provide further insight into consumer spending trends, industrial demand and the financial services landscape - all key barometers for broader economic health.

The tech sector remains firmly in the driver’s seat, with Nvidia continuing its sharp upward trajectory. The stock climbed again on Thursday, now trading at a staggering $173 - up 18.9% over the past month. Analysts have upwardly revised their price targets, and chatter of a $5 trillion valuation continues to gain traction.

Microsoft and Palantir also posted notable gains, reflecting continued enthusiasm around AI and software innovation. Meanwhile, Meta made headlines after hiring a group of former Apple AI experts to join its “superintelligence” team - a move seen as bolstering Meta’s ambition in the advanced AI race.

Robinhood shares continue to surge amid renewed retail interest in cryptocurrencies as well as other financial products. The trading platform is now up a staggering 183% year-to-date, significantly outpacing the broader US 500 Index, which has gained 7% over the same period. 

The retail investor revival, powered by crypto, AI enthusiasm, and strong earnings, remains a defining feature of this market cycle.

European stock indices were modestly firmer across the board this morning. This was in response to gains across Wall Street last night, along with further strength in US stock index futures this morning. 

The UK’s FTSE 100 continues to flirt with the 9,000 level, which is both a psychological and technical area of interest. It has broken above here a few times this week. But so far, it has been unable to hold the key level, as every break so far has met with profit taking.

Source: TN Trader

After last week’s poor GDP data and following yesterday’s uptick in unemployment, traders are reassessing the timing of the next rate cut from the Bank of England (BoE). But given Wednesday’s hotter-than-expected inflation data, the Bank finds itself, once again, in a difficult position.

Burberry issued its latest trading update this morning, saying it expects to see margin improvement next year, a statement welcomed by investors. 

Meanwhile, Reckitt Benckiser announced the sale of its Essential Home business, including brands like Air Wick and Cillit Bang. The move was accompanied by news of a special dividend and share buyback programme, which should support shareholder value in the near term.

Across the FX market, the US dollar has pulled back a touch following a strong start to the month. The Dollar Index was trading on either side of 98.00, consolidating after recent gains. 

It began the month by hitting a three-and-a-half-month low when it briefly broke under 96.00. But resilient US economic data, along with expectations of just two rate cuts this year, rather than the four forecast earlier, have helped to steady the dollar.

Sterling continues to be influenced by labour data and central bank speculation. With economic growth non-existent and the unemployment rate ticking higher, questions remain over the BoE’s next move, particularly as inflation remains elevated.

Source: TN Trader

Bitcoin continued to consolidate around $120,000, having surged to an all-time high above $123,000 at the beginning of this week. Bullish sentiment across digital assets appears to be holding, particularly as the Trump administration has repeatedly expressed its support for the sector. 

Yesterday, the US House of Representatives passed a bill, nicknamed the ‘GENIUS Act’, which provides a regulatory framework for stablecoins (cryptos pegged to traditional assets such as the US dollar and Treasury bonds). 

The House passed two additional pieces of legislation, which now go to the Senate for consideration. One of these would prevent the creation of a central bank digital currency, while the other provides a regulatory framework for crypto more generally. 

Moves like these are helping to underpin the sector and give investors more confidence in what has been seen as, and probably still is, highly speculative and volatile financial assets.

Crude oil prices crept up in early Friday trade. Front-month WTI briefly broke above $67 per barrel before pulling back a touch. The gains follow a steady trend higher over the week, underpinned by a more optimistic demand outlook for the second half of the year. OPEC’s latest guidance reinforced expectations of improving consumption, particularly as travel and transportation activity picks up globally. 

While the rise was relatively muted, the broader tone remains constructive for bulls, especially as supply remains broadly in check and geopolitical risk continues to swirl in the background. Traders will keep a close eye on further macro data and inventory numbers to gauge if prices can extend above the recent range.

Source: TN Trader

Gold and silver prices were steady in Friday trade, with a modest upside bias. But both metals lacked the follow-through needed to build on overnight gains. The metals have remained rangebound this week, with gold hovering near key levels and silver struggling to maintain upward momentum after briefly pushing higher.

Source: TN Trader

Safe-haven demand has yet to reassert itself meaningfully despite broader macro noise and geopolitical developments. Traders appear content to sit on the sidelines for now, with risk assets still favoured amid strong equity performance. Until clearer catalysts emerge, such as a shift in inflation or a change in interest rate expectations, precious metals are likely to continue consolidating around current levels.

The VIX was little changed in early trade on Friday. Despite uncertainties over global trade, volatility has barely moved, thanks to President Trump’s tariffs. Instead, the VIX continues to inch sideways, as investors show no appetite for paying up for protective S&P put options, despite the index hitting a succession of record highs. 

In other words, investors are remarkably sanguine, or extremely complacent. Investors must also consider developments around the Trump–Powell dynamic. But recent economic data updates, together with a strong start to the second quarter earnings season, have cheered investors and boosted risk appetite.

Investor optimism shows no signs of slowing, with Wall Street continuing its march to record highs on the back of robust earnings and encouraging macro data. Better-than-expected retail sales and a dip in jobless claims reinforced the idea that the US consumer remains strong.

Corporate earnings are helping to validate equity valuations, particularly in the tech sector, where names like Nvidia, Netflix, and Microsoft continue to outperform. The rally in crypto and retail-focused stocks like Robinhood further reflects risk appetite returning to the market.

At the same time, background noise from President Trump’s ongoing feud with Fed Chair Powell and unresolved global trade tensions continues to stir uncertainty. Yet investors have taken these developments in their stride, helped by a softening inflation outlook and a belief that the Fed still has room to ease rates later this year.

Europe and Asia are following Wall Street’s lead, but local dynamics, including UK jobs data, China’s tariff concerns, and Eurozone earnings, are adding complexity.