The first general election debate of the 2024 season between U.S. President Joe Biden and former President Donald Trump has just concluded. The debate focused on various topics, including the economy, with both candidates highlighting their economic achievements. Biden focused on rescuing the economy from "free fall" during his presidency, while Trump boasted about the strong economic performance during his term. The debate results appear to have shifted momentum slightly in Trump's favour, with a recent poll showing him nearly 4 points ahead of Biden. However, the second debate on September 10th will be crucial in determining Biden's standing and addressing concerns especially about his age and performance.
EQUITY
The S&P 500 closed the day with another gain and is on track to a strong performance in the first half of 2024, significantly outperforming its historical average of 10% after having already achieved it during the first quarter. A handful of big tech stocks, including Nvidia, Meta Platforms, Alphabet, Amazon, and Microsoft, have been driving this rally through the artificial intelligence boom. July has historically been a strong month for equities, often being the best-performing month for the S&P 500.
GOLD
Gold prices dipped Friday after a strong recovery yesterday, and the price is about to close at a third straight quarterly gain. Investors await key U.S. inflation data for clues on potential Fed rate cuts, with markets pricing a 58% chance of a September cut. However, some Fed officials remain cautious about easing due to inflation concerns, which could impact gold's appeal as a non-yielding asset.
OIL
Crude oil prices continue rising in Asian session after a notable gain on Thursday, headed for a third consecutive weekly gain and substantial monthly increases. Changing interest rate path, firm refining margins, and supply disruption fears in Russia and the Middle East became the main driver for this uptick. Brent and WTI futures are set to gain over 6% in June, with markets largely shrugging off unexpected increases in U.S. crude and gasoline inventories as summer .
CURRENCY
The dollar's strength has been relentless, with the currency headed for a second straight quarterly gain. The yen has been particularly affected, tumbling to a 38-year low against the dollar and touching a record low against the euro, breaching the 161 level. The appointment of a new top foreign exchange diplomat in Japan has further fueled speculation about imminent market intervention. The yuan rose slightly but remained near seven-month lows, with minimal impact from the presidential debate.