The Weekly View 29th July 2024

Welcome to the Unio Weekly View, our summary of markets and macro news for the week beginning July 29th, 2024:

- In markets news, it’s a big week for quarterly earnings as four of the “Magnificent 7” companies report this week - Microsoft, Meta (Facebook), Apple and Amazon - with all four reporting modest share price returns this year compared to 2023. Investors will be watching for updates on each companies’ AI initiatives.

- On the macro front, both the Bank of Japan and the US Federal Reserve will make interest rate decisions on the 31st. Japan is entering a new regime by claiming victory in its long battle with deflation, however expectations of an interest rate hike this week are mixed. The Fed on the other hand will likely start to signal that they are close to cutting interest rates, although a cut at this meeting is unlikely.

- The Yen has dramatically rebounded against the US Dollar over the last two weeks, setting the scene for a potentially volatile week as central banks from both countries have their meetings on Wednesday. The Yen has increased nearly 5% on expectations that the interest rate differential between the two countries could narrow.

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