8am: Markets overview
Profit taking has been the story in wider markets this week, says Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Prefeences for risk were limited across European and US indices yesterday, she notes, “as investors likely decided to take profits on the latest rally and step aside before fresh data hits”.
Today, traders’ eyes will be on the latest update on US GDP, which is expected to have rebounded to 3.3% in the second quarter following a sharp disruption from the trade war in Q1, supporting the narrative aqbout the economy enjoying a soft landing from Donald Trump’s new policies.
“But a soft landing is a double-edged sword: a stronger-than-expected print could reignite concerns that the Fed may refrain from cutting rates further, especially next year when Fed members hold divergent views.
“That scenario would push bond yields higher, strengthen the US dollar and weigh on equities.
“Conversely,…
