Hello traders, welcome to Wednesday. As we near the end of the Asian session, let's dive into what's been happening in the markets and what to expect for today.
Starting with earnings, yesterday saw some key reports from major companies. Philip Morris reported better-than-expected results, which sent the stock up by 10%. Texas Instruments also delivered strong earnings, although this news was released after the market closed. Despite the timing, after-hours trading shows the stock rising by almost 4%. On the downside, Lockheed Martin had mixed results, which traders responded to negatively, resulting in a 6% drop. Another notable company, Starbucks, also reported disappointing earnings, leading to a 4% decline in after-hours trading.
Today's earnings calendar will be dominated by some heavy hitters, with Tesla set to report earnings after the market closes, and Coca-Cola releasing its results before the market opens. Both are key stocks to watch as their performance could significantly influence market sentiment.
In terms of macroeconomic events, we have a big day ahead. The Bank of Canada is expected to announce an interest rate cut of 50 basis points, which could have a significant impact on the Canadian dollar. Additionally, we'll be hearing from several central bankers today, including ECB President Christine Lagarde, Reserve Bank of New Zealand Governor Orr, and Bank of England Governor Bailey. These speeches will likely provide valuable insights into the future of monetary policy in their respective regions.
Moving on to the markets, let's start with currencies. The Japanese yen continues to lose ground rapidly, and pairs involving the yen are climbing higher as a result. The yen is by far the weakest currency at the moment, followed closely by the Swiss franc, which is also under pressure. On the opposite side, the British pound, euro, Canadian dollar, and US dollar are showing strength. One particularly interesting development is in the USD/JPY pair, which is currently testing a key horizontal resistance level. This level has been significant in October of the past two years and remains crucial in 2024. Traders are closely watching to see if the price will break above this resistance or reverse.
In the indices, we're seeing some bearish corrections across the board this week. European markets are facing a rough start, and even S&P 500 and NASDAQ, which showed resilience earlier in the week, are now struggling.
Finally, in commodities, the precious metals market continues to perform well. Gold has reached new long-term highs, and silver is also climbing higher. Meanwhile, after a strong session yesterday, oil is showing some short-term positive sentiment, although the overall trend for oil this week has been weak.