This Week
The highlight of the economic week will be the August 12th US CPI Inflation data, which is expected to impact Fed rate cut expectations. But this week, a major focus is expected to be on the reported meeting between Presidents Trump and Putin, set to take place in Alaska on August 15th, on the subject of a potential Russia–Ukraine ceasefire. The August 12 deadline for a US-China trade agreement will also be in focus, with the markets anticipating the US could extend the deadline by 90 days. The earnings season continues beyond its midpoint.
Stocks
XPENG
XPENG’s price surged 8.46% to trade at a two-month high as the fortunes of the company continue to turn around after a difficult first quarter. Last week, XPENG announced it delivered over 36,700 vehicles in July, marking a 229% increase compared to the same month last year. Easing trade tensions between the U.S. and China, along with the company’s expansion into 46 countries, have strengthened its outlook, making it the top-performing EV stock. The company has also invested in AI tech through its smart EV features to match its rivals. XPENG will post its earnings on August 19th.
APPLE
Apple’s stock price jumped 12.4% to reach an almost five-month high. The most recognized global brand has declined so far this year amid worries that the company is falling behind its rivals. But news this week that the company intends to invest $600 billion in US-based manufacturing will help the company to avoid US tariffs and reduce cost pressures, and was seen as a boost for the company. Apple recently posted strong earnings results, marking the company’s strongest sales growth since 2021. In September, the company is expected to reveal its latest iPhone at the annual Apple event.
Commodities
Crude Oil
Crude oil prices fell 5.3%, dropping to a two-month low as the market’s focus was dominated by President Trump’s deadline of Friday, August 8th, to sanction Russia and Russian oil importers, which could have reduced global oil supplies. On Friday, no sanctions were announced, with a meeting between Trump and Putin scheduled instead. While US inventories recorded a fall, OPEC+'s recent decision to add to supply, combined with fears that recent US tariffs could decrease oil demand, pressured prices.
Gold
Gold prices advanced 1.07% after the US applied a new 25% tariff to Indian exports and threatened tariffs on other countries that import Russian energy, causing demand for safe-haven instruments. News that Swiss gold bars will also be subjected to a 39% tariff also triggered prices to increase. On the economic front, lower-than-expected US data increased expectations that the Fed will cut interest rates in September.
Silver
Silver prices increased 3.5% last week, driven by safe-haven demand as tensions escalated between the US and India, as well as between the US and Russia. The silver market remains tight, driven by industrial demand, particularly due to solar panel, EV, and electronics demand. A weaker dollar also made the metal more affordable for foreign currency traders.
GBP/USD
The GBP/USD pair rose 1.19% to a two-week peak after the Bank of England cut interest rates by 0.25% to 4%. However, the cut was a divided decision, suggesting that future BoE rate cuts in the coming months are less likely, generating support for Sterling. The dollar fell on weaker NFP data from the previous Friday and mostly softer US data throughout the week.
Recap
Last week, the S&P 500 jumped 2.4%, the Nasdaq surged 3.9% and the Dow Jones increased 1.4%.
US stock indices finished the week on a positive note, with IT stocks outperforming their rivals, despite some weaker-than-expected US data over the week. Increasing expectations of Fed rate cuts and positive earnings from Palantir and AMD continued to support stock prices, while Russia avoided (for now) US oil sanctions after President Putin reportedly agreed to meet. Crude oil prices sank to two-month lows while natural gas prices continued to lose ground. Gold prices climbed to two-week highs, and silver prices saw significant increases. Platinum prices edged higher, but palladium retreated to a one-month low.