Markets Report - 25 July 2023

A daily breakdown of the markets for the 25th July 2023, provided to you by Sterlex.

🇨🇳 At yesterday's Politburo meeting, the Chinese government indicated further assistance for the real estate industry but stopped short of declaring a significant economic boost, with markets taking favourably to the result. The Hang Seng and CSI 300 both saw increases in the Asian share market. The measures caused CNH to increase 0.7% vs USD over night, and this morning, with markets more optimistic about Chinese GDP, EURUSD was up 0.1%. US equities futures increased somewhat this week as markets awaited earnings and important central bank announcements.

🇬🇧💷The UK July flash PMIs released yesterday decelerated as anticipated, although they were softer than most economists and the market expected. Despite a little decline, the employment category for services is still significantly higher than average. The delivery time index in the manufacturing print is at its highest level since 1992. Since COVID-19, PMIs have not been an accurate indicator of GDP growth, thus market participants should be cautious before forming any firm conclusions.

💵📉The US economy appears to have continued to develop in Q3 after registering respectable growth in Q2 according to actual statistics, which has led some analysts to raise their short-term predictions for US growth and postpone an anticipated slight slowdown until 2024.Market participants anticipate the FOMC to announce a 25bp raise tomorrow, with a tilt towards tightening and no specific indications for September.

Focus now shifts to the FOMC and ECB.