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Stock indices traded mixed on Wednesday, with the Dow Jones Industrials (US30) setting a new record high and the Nasdaq 100 (US100) falling to a two-week low. The Dow Jones Industrials (US30) Index gained 0.59%, while the S&P 500 (US500) Index fell by 1.39%. The Nasdaq Technology Index (US100) closed negative 2.77%. Positive corporate news boosted the broad market on Tuesday. Stock declines in chip companies and technology mega-companies negatively impacted the broader market. Nvidia stock fell by 7%, Qualcomm and AMD lost 8%, ARM fell nearly 10%, and ASML's ADR decreased by 11%. In addition, larger technology stocks, Apple and Microsoft, lost more than 2% each. Shares of chip companies declined on concerns that the US may adopt tougher restrictions on Chinese trade and semiconductor technology. Bloomberg reported Wednesday that the Biden administration has told allies it is considering the toughest trade restrictions against chipmakers if they continue to give China access to advanced semiconductor technology.

Equity markets in Europe traded mixed on Wednesday. Germany's DAX (DE40) was down 0.44%, France's CAC 40 (FR40) closed down 0.12%, Spain's IBEX 35 (ES35) was up 0.13%, and the UK's FTSE 100 (UK100) closed positive 0.28%. European stocks have been suffering heavy losses for the past 2 sessions, as chip stocks have been under pressure due to reports that the US is considering tightening restrictions on chip exports to China. Donald Trump's comments about Taiwan having to pay the US for defense also added to geopolitical concerns in the sector.

The UK labor market report was mixed. In the three months to May 2024, the number of people employed in the United Kingdom rose by 19,000 after falling by 139,000 in the previous period and exceeded market estimates. This marked the first rise in job creation in the three months to December 2023. Average weekly earnings, including bonuses in the UK for the three months to May 2024, rose 5.7% year-on-year to £689 a week, down 5.9% in each of the previous two periods and in line with estimates of 5.7%.

WTI crude oil prices climbed above $83 a barrel on Thursday, extending gains from the previous session, thanks to a larger-than-expected drawdown in US crude inventories. According to the EIA, the US crude oil inventories fell by 4.87 million barrels in the week ended July 12, marking the third straight week of decline and exceeding the market estimates for a 0.8 million barrel decline. It is the longest stretch of inventory declines since September.

Asian markets traded mixed yesterday. Japan's Nikkei 225 (JP225) was down 0.43%, China's FTSE China A50 (CHA50) added 0.46%, Hong Kong's Hang Seng (HK50) was up 0.06% and Australia's ASX 200 (AU200) was positive 0.73%.

Australia added more jobs than expected in June amid strong job openings and a high participation rate, although the unemployment rate rose to 4.1% from 4%. The Reserve Bank of Australia is expected to keep interest rates unchanged in August. Still, some traders continue to bet on another rate hike amid persistent inflationary pressures and a tight labor market. The RBA is also expected to ease policy much later than other major central banks.

• S&P 500 (US500) 5,588.27 −78.93 (−1.39%)
• Dow Jones (US30) 41,198.08 +243.60 (+0.59%)
• DAX (DE40) 18,437.30 −80.73 (−0.44%)
• FTSE 100 (UK100) 8,187.46 +22.56 (+0.28%)
• USD Index 103.74 −0.53 (−0.51%)
   

Important events today:

• Japan Trade Balance (m/m) at 02:50 (GMT+3);
• Australia Unemployment Rate (m/m) at 04:30 (GMT+3);
• UK Average Earnings Index (m/m) at 09:00 (GMT+3);
• UK Claimant Count Change (m/m) at 09:00 (GMT+3);
• UK Unemployment Rate (m/m) at 09:00 (GMT+3);
• Eurozone ECB Interest Rate Decision at 15:15 (GMT+3);
• Eurozone Monetary Policy Statement at 15:15 (GMT+3);
• US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
• Eurozone ECB Press Conference at 15:45 (GMT+3);
• Eurozone President Lagarde Speaks (m/m) at 17:15 (GMT+3);
• US Natural Gas Storage (w/w) at 17:30 (GMT+3).

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