September rate cut expectations reignite, helping boost US stocks; French stocks experience the largest drop in over two years, with crude oil leading the way among commodities | Overseas major asset weekly report
Inflation cooling stimulates US stocks to hit record highs, French President Emmanuel Macron's "magic move" triggers a double kill in French stocks and bonds, gold prices rise for the first time in four weeks on a weekly basis, and the US chip sector continues to lead the way
During the week of June 10th to June 14th, the US CPI and PPI reports boosted market sentiment one after another, with the S&P 500 and Nasdaq hitting historic highs. However, in contrast, European capital markets were in turmoil, with French stock indices experiencing the largest drop in over two years due to fears of Frexit and financial crisis.
Inflation data reignited expectations of a rate cut in September, with the S&P 500 and Nasdaq rising by 1.6% and 3.2% respectively this week. The Nasdaq 100 Index ETF led the way in overseas asset classes.
With French President Macron facing a decline in approval ratings and calling for early elections, the economic security of the entire Europe is threatened. Both the far-right and far-left in France have ambitious spending plans, and whichever side comes to power may sow the seeds of financial crisis or even EU exit for France, leading to European stocks falling by over 2% this week, marking the worst performance in eight months, and French stocks dropping by over 6%, the largest decline in over two years.
In terms of commodities, gold prices rose for the first time in four weeks, increasing by about 1.8% this week, while London aluminum, lead, and nickel fell by over 2% this week.
Crude oil futures hovered near two-week highs, with US oil rising for the first time in four weeks, Brent and US oil rising by 2.78% and 3.86% respectively this week. Goldman Sachs released a report early this week stating that a surge in summer fuel demand may lead to a "major gap" in the oil market in Q3, and they maintain that oil prices will stay in the range of $75-90 per barrel until 2024.
The chip sector led the gains in US stocks significantly, with AI stocks like Nvidia and Apple hitting new highs during the week, and Apple briefly surpassing Microsoft in market value in the US with "Apple Smart".
