As July trading comes to a close, traders are keeping a close eye on several key considerations in the markets. The Australia Q2 CPI report and BOJ monetary policy decision have already made an impact, but there are still important events on the horizon.
In Europe, the Eurozone July flash CPI report is scheduled for release, although it may not have a significant impact on the markets. However, in the US trading session, traders will be watching the ADP employment data and the Fed policy decision closely. The Fed policy decision, in particular, is expected to be the main event of the day.
Additionally, traders need to be mindful of month-end flows, especially as we approach the London fix later in the day. These flows can have a significant impact on market movements.
Furthermore, there are key earnings releases to look out for, with Meta scheduled to report after the close. Currently, US futures are relatively calm, with S&P 500 futures up 0.4% and Nasdaq futures up 0.8%. This comes as Microsoft recently reported a beat on earnings, but concerns remain about its slow cloud growth, indicating that returns from their AI investment may take longer to materialize.
Overall, as the month of July comes to a close, traders are navigating through a mix of economic data, monetary policy decisions, earnings reports, and market flows. It will be crucial to stay informed and agile in order to capitalize on opportunities and navigate potential risks in the markets.