By Deepta Bolaky
 @DeeptaGOMarkets

Equity Markets

The US sharemarkets dropped on trade concerns. President Trump renewed attacks and threats on China with a series of tweets.  The US President blamed China for not holding the end of the bargain with the buying of more agricultural products and for “changing the deal in the end for their benefit”.

The three major US equity indices slipped further in the red on Tuesday.

• S&P500 and Nasdaq Composite lost 0.3% and 0.2% respectively dragged by the technology sector.

• The Dow Jones Average Industrials fell by 0.1% at 27,198.

On the earnings front, the quarterly reports of Apple were highly anticipated to gauge the severity of trade tensions and a slowing global economy on the big tech company. Apple’s earnings and revenue beat estimates and its share price rose in the after-hours trading.

The attention will switch to the Federal Reserve today as an interest rate cut is highly anticipated today.

Currency Markets

In the forex markets, major currencies remained mixed against the US dollar. It was a busy European and US session on the economic front.

• Personal Spending match forecasts at 0.3% for June.
• Personal Income also came as per estimates at 0.4% for June.
• Annualised Core PCE was below expectations at 1.6% while monthly core PCE came as per estimates at 0.2%.
• Pending Homes Sales were higher at 2.8% for June compared to 1.1% in May.

The pound continues to fall after its crash on Tuesday on the prospects of a hard-Brexit. GBPUSD dropped to a low of 1.2119 as markets started pricing in more aggressively the possibility of a no-deal Brexit.

As of writing, it is currently trading slightly higher at 1.2150 as traders await for the Fed’s interest rate decision later today.

GBPUSD (Daily Chart)

Source: GO MT4

The Australian dollar remains on the downside amid a lack of upside catalysts. The AUDUSD is trading around a 6-week low below 0.6900. Even though the pair held ground on disappointing housing data, conflicting trade tweets sent the pair further to the downside.

As of writing, it is currently trading at 0.6876. The Chinese Manufacturing data and Aussie CPI figures will be the next events for fresh trading opportunities ahead of the Fed’s meeting.

Commodities

The oil market is finding support on a decline in global supplies and tensions in the Middle East disregarding the latest bearish trade news and API reports. API Weekly Crude Oil Stock rose from previous -10.961M and -6.024M.

WTI bolstered higher and broke through a key resistance level at $57. Brent Crude also edged higher and is currently trading in the $64 mark.

UKOUSD and USOUSD (Hourly Chart)

Source: GO MT4

Gold edged higher on trade-related comments. On the hourly chart, it is currently trading in an uptrend. All eyes will be on the move of the Federal Reserve. Markets will be looking for clues to see if the Fed will commit to a rate cut cycle or whether the rate cut will be a precautionary one.

Gold traders will watch whether the Fed will go for a hawkish or dovish rate cut.

Source: GO MT4

Key Upcoming Events Ahead

Thursday, 01 August 2019 Indicative Index Dividends Dividends are in Points
ASX200	WS30	US500	US2000	NDX100	CAC40	STOXX50
0	2.442	0.297	0.094	0.026	0	0
ESP35	ITA40	FTSE100	DAX30	HK50	JP225	INDIA50
0	0	1.017	0	0	0	3.084