Tech gains help drive market strength

Posted by Joshua Mahony -
Scope Markets
  • US tech boost helps drive positive European theme
  • Surprise bump in Japanese inflation gauge
  • Crude under pressure as Hillary leaves LA refineries unscathed
  • BRICS talks underway, with expansion talk eyed
  • FOMC in focus, with members due to appear ahead of Powell

European markets are following the positive theme established throughout the US and Asia, with recent concerns taking a back seat for now. Tech gains dominated a Monday session that was driven by a healthy 8% bump in Nvidia ahead of their earnings tomorrow. Despite the huge run-up in valuation, forecasts for an incredible surge in revenues over the coming years help justify the potential for further upside for the AI-focused chipmaker.

Japanese interests peaked overnight thanks to a standout inflation reading that served to push back against the recent narrative that prices had peaked. Declines across national core CPI, Tokyo core CPI, and PPI, had set up the yen for continued downside, but today’s 0.3% jump in the BoJ core CPI brought an inflationary signal that pushed JPY higher and the Japanese 10-Year yield to the highest level since 2014. With Ueda meeting Prime Minister Fumio Kishida, markets are increasingly questioning whether the BoJ could be gearing up for another course of intervention before long.

Crude prices remain on the back foot as prices abate in response to the news that Hurricane Hilary has managed to pass through the Los Angeles region without impacting the refineries in the region. While PBF Energy reported a malfunction at their 180k barrel per day operation, it appears to be unrelated to the storm.

A series of BRICS discussions commence today, with leaders from Brazil, Russia, India, China, and South Africa meeting in Johannesburg to discuss the potential mutual benefits and expansion of the group. The Russian war already fast-tracked the move to undertake energy transactions away from the dollar, and while initial claims of its impending demise may have been premature, these meetings will undoubtedly take aim at shifting power away from the West. One method to expand the influence of the BRICS group comes through the ability to allow additional members, with a host of African and South American countries showing particular interest.

The Federal Reserve starts to take on a more prominent role today, with comments from Barkin, Goolsbee, and Bowman laying the groundwork for Powell’s Jackson Hole appearance. Markets continue to feel that a September hike is largely unlikely, with just a 13% chance attributed to such a move. However, with markets pricing in a 43% likeliness of a November hike, we could see some dollar volatility if Powell or his colleagues opt to shift the tone this week.

Share this article:

Disclaimer: The article above does not represent investment advice or an investment proposal and should not be acknowledged as so. The information beforehand does not constitute an encouragement to trade, and it does not warrant or foretell the future performance of the markets. The investor remains singly responsible for the risk of their conclusions. The analysis and remark displayed do not involve any consideration of your particular investment goals, economic situations, or requirements.

Payment Methods

Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets

*The Company does not accept nor safekeep any cryptocurrency assets. The provision of such a service is not being directly provided by the Company, but through licensed third parties.


Scope Markets
Scope Markets
Scope Markets
Scope Markets

Scope Markets offers institutional and retail trading services to businesses and traders worldwide. Our top management team has more than 20 years of experience in the industry, and we are proud of the solid partnerships we built over the years. Whether it's a business or individual, Scope Markets has a wide range of trading solutions that are compliant, flexible, cost-efficient, innovative, and place the client first.

Contact Us

Registered address:
6160, Park Avenue, Buttonwood Bay, Lower Flat Office Space Front, Belize City, Belize


+44 2030 516959

Risk Warning

Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors. Trading in financial instruments may result in losses as well as profits and your losses can be greater than your initial invested capital. Before undertaking any such transactions, you should ensure that you fully understand the risks involved and seek independent advice if necessary. Please read and ensure you fully understand our Risk Disclosure.

Legal Information

Scope Markets Ltd is a company registered under Belize with Registration Number 145,138. Scope Markets Ltd is authorized and regulated by the Financial Services Commission of Belize (“FSC”) under the license numbers 000274/325 and 000274/324. The registered address of Scope Markets Ltd is, 6160, Park Avenue, Buttonwood Bay, Lower Flat Office Space Front, Belize City, Belize.

Restricted Regions

Scope Markets does not offer its services to the residents of certain jurisdictions. Please read carefully our Restricted Countries document.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

© Copyright 2022 Scope Markets. All Rights Reserved.