Market Commentary: Wednesday 24th July

Asian stocks and European and US stock futures dropped overnight as investors digest some poor results from megacap tech firms. Tesla and Alphabet, namely, posted results which were seen as insufficient to justify the recent global rally. Tesla declined by almost 8% after missing estimates and delaying its 'Robotaxi' event to October. It could be a volatile patch for US equities with both earnings from significant names and a presidential election to contend with. Chinese stocks continued to follow the general downward trend of late amid economic troubles and geopolitical risks - still the balance of short trades on Chinese stock exchanges fell to the lowest level in more than 4 years after new measures to curb short-selling went into effect.

Oil rose slightly yesterday (WTI currently at $77.14/barrel) after an industry report indicated that US crude inventories fell for a fourth week.

The Bank of Canada will announce a rate decision today - weaker than expected inflation data in June, a softening Canadian labour market and the Fed setting the stage for a policy easing cycle of its own should provide the Bank of Canada with enough reasons to deliver their second 25bp cut of the cycle at Wednesday's meeting.

We also have US new home sales data and IBM and Deutsche Bank earnings today. But most eyes will already be on data later in the week with US GDP and PCE figures coming out.

**For professional investors only** Any opinions, news, research, analyses, prices, or other information contained in this blog is provided as general market commentary and does not constitute (and should not be construed as containing) investment advice or an investment recommendation, or an offer of, or solicitation for, a transaction in any financial instrument. Some of this information may have been provided by third-party sources and, although believed to be reliable, it has not been independently verified and its accuracy or completeness cannot be guaranteed. No representation or warranty, expressed or implied, is made or given by or on behalf of iSAM Securities or its directors or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this blog, and no responsibility or liability is accepted for any such information. As a result, any person acting on any information does so entirely at their own risk. iSAM Securities will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.