The Bank of Canada kept its interest rate unchanged. Platinum prices reached a three‑week high

By the end of the day, the Dow Jones Index (US30) rose by 0.29%. The S&P 500 Index (US500) gained 0.38%. The tech‑heavy Nasdaq (US100) closed Wednesday in the green at 0.62%. On Wednesday, the US stock market showed mixed dynamics: optimism about slowing inflation, supported by Producer‑price Index data, helped the S&P 500 and Dow Jones close higher. The statistics confirmed moderate price pressure, reducing expectations of further Fed rate hikes and allowing the market to ignore geopolitical risks linked to energy commodities.

The Canadian dollar (CAD) strengthened to a one‑month high, reaching 1.40 per US dollar after the Bank of Canada decided to keep its key rate at 2.25%. The regulator adopted a fairly hawkish stance, pointing to signs of economic recovery and raising inflation expectations for the current year. This rhetoric convinced investors that borrowing costs will remain high for an extended period, supporting the national currency. An additional factor was external conditions, particularly the weakening of the US dollar following US producer‑price data that came in below expectations.

European indices mostly declined on Wednesday. By the end of the day, Germany’s DAX (DE40) fell by 0.59%, France’s CAC 40 (FR40) closed up 0.19%, Spain’s IBEX 35 (ES35) dropped 0.42%, and the UK’s FTSE 100 (UK100) closed down 0.13%.

Crude oil prices (WTI) stabilized near $80 per barrel, holding at monthly highs due to a sharp escalation in the Persian Gulf. The US military campaign aimed at protecting navigation in the Strait of Hormuz entered a phase of intensive airstrikes on Iran’s missile depots and launch sites. The situation is further complicated by the potential expansion of the conflict’s geography: the Trump administration’s discussion of a scenario involving the seizure of the key export terminal on Kharg Island creates critical risks for global energy supplies.

Platinum prices (XPT) reached a three‑week high, rising to $1,670 per ounce. The main catalyst was the weakening of the US dollar to a one‑month low, triggered by weak inflation data that virtually eliminated the possibility of a Fed rate hike this month. The cheaper dollar increased the attractiveness of platinum as a commodity asset. Beyond macroeconomic factors, the platinum market is supported by a persistent fundamental supply deficit, now in its fourth consecutive year.

In Asia, Japan’s Nikkei 225 (JP225) fell by 0.77%, China’s FTSE China A50 (CHA50) closed up 0.52%, Hong Kong’s Hang Seng (HK50) gained 1.38%, and Australia’s ASX 200 (AU200) closed down 0.12%. On Thursday, Hong Kong’s Hang Seng index showed strong growth, adding 1.3%. The positive dynamics were driven by an overall improvement in global risk appetite after the release of unexpectedly weak US producer‑price inflation, which significantly eased concerns about price pressure. Against this backdrop, market participants continued reallocating capital into Hong Kong‑listed equities, ignoring weaker‑than‑expected macroeconomic data from mainland China.

The Australian dollar (AUD) remains resilient, holding near $0.70 and consolidating at three‑week highs. The currency is effectively offsetting geopolitical pressure caused by the escalation of the US-Iran conflict and the subsequent spike in energy prices. The main driver of the current exchange rate remains US dollar weakness. Domestic factors in Australia also support current market sentiment: inflation expectations continue to decline, falling in July to a six‑month low of 4.7%. Despite this, traders remain cautious in expecting further steps by the Reserve Bank of Australia, pricing in only a 20% probability of an August rate hike.

The New Zealand dollar (NZD) consolidated near a six‑week high at $0.584, supported by expectations of continued tightening by the Reserve Bank of New Zealand. Market participants project that, following the recent rate increase, the regulator will act again in September, aiming to bring the official rate to 3.0% by year‑end. An additional support factor is the overall weakness of the US dollar, which is near a one‑month low as investors reassess expectations regarding Fed aggressiveness.