MRKTE US / Wall Street still engulfed in fears of stagflation | News

NEW YORK (Dow Jones) – There is also no change in Wall Street on Thursday. Thus, the recent decline continues with new lows for this year. While the market-wide S&P 500 index has fallen 4.5 percent this week so far, the tech-savvy Nasdaq Composite has dropped to its lowest level since November 2020. The stock market is still debating whether the peak will take place after recent US inflation data hikes have been released. achieved. The uncertainty about this weighs on the US stock market, as the discussion about the development of inflation always raises the question of whether the US Federal Reserve will accelerate the pace of inflation reduction. This means that fears of stagflation persist, and with them, arguments against buying stocks.

Early in the trade, the Dow Jones index fell 1.0 percent to 31,515, while the S&P 500 and Nasdaq Composite fell 1.2 percent and 1.8 percent, respectively. “This means the US Federal Reserve may be forced to tighten its monetary policy too much, which could lead to a sharp economic slowdown, but it also means that the economic outlook for the tech sector and some other areas is now viewed as overly optimistic. – explains the macro strategist Sebastian Galy from Nordea Asset Management. Markets fear that central banks’ attempts to contain inflation could trigger a recession or at least a sharp economic slowdown. Looking at yesterday’s data on consumer prices, it may be a bit too early to name the peak of inflation, ”added investment strategist Luc Filip. with SYZ Private Banking.

After consumer prices, which have recently fallen slightly but are still above forecast, CPI inflation fell within the forecasted range – in the base rate even slightly more markedly than expected. At the same time, weekly labor market data were slightly weaker than expected. The discussion on stagflation should therefore continue.

The crop remains in reverse

Despite the prospect of rising interest rates, yields are falling again. Concerns about an economic slowdown are driving investors to a supposedly safe haven for bonds. US 10-year government bond yields are increasingly falling below the important 3 percent limit.

The dollar reaches its highest level since 2002, the dollar index rose by 0.5%. In the face of falling market interest rates, as with US bonds, investors also rely on supposed safety in uncertain times.

The strong dollar and fears about the economy are weighing down on oil prices. The planned EU embargo on Russian oil is still making little progress. At the same time, the Organization of Petroleum Exporting Countries (OPEC) for the second time in several months lowered its forecast of an increase in the daily demand for crude oil. Meanwhile, a strong dollar slows down the price of gold.

Walt Disney misses earnings forecast

Beyond Meat fell 27.8 percent among individual stocks after a producer of plant-based meat substitutes saw losses greater than expected in the first quarter. The company blamed the high cost of introducing new products.

Disney loses 5.3 percent. The entertainment company’s Q2 adjusted earnings per share fell short of analysts’ expectations.

Electric car maker Rivian significantly increased its loss in the first quarter and turned less than expected. Shares fell 5.3 percent. Sonos improves by 7 percent. The loudspeaker manufacturer achieved a higher-than-expected turnover in the second quarter of the fiscal year and unexpectedly increased its adjusted earnings per share.

Fossil was down 14.1 percent after the watch and accessories maker lowered its sales forecast.

===

INDEX last + / -% absolute + / -% YTD

DJIA 31 515.46 -1.0% -318.65 -13.3%

S&P 500 3,886.36 -1.2% -48.82 -18.5%

Nasdaq Comp. 11 164.86 -1.8% -199.38 -28.6%

Nasdaq-100 11 749.60 -1.8% -217.96 -28.0%

US bonds

Term Profitability Bp to VT Profitability VT +/- Bp YTD

2 years 2.58 -4.1 2.62 184.8

5 years 2.82 -9.2 2.91 155.6

7 years 2.87 -8.0 2.95 142.8

10 years 2.85 -8.2 2.93 133.7

30 years 2.99 -5.5 3.05 109.1

FOREX last +/-% Thu 8:22 Wed 18:55% YTD

EUR / USD 1.0410 -1.0% 1.0495 1.0530 -8.5%

EUR / JPY 133.04 -2.6% 135.91 136.72 + 1.7%

EUR / CHF 1.0404 -0.4% 1.0455 1.0444 + 0.3%

EUR / GBP 0.8525 -0.7% 0.8610 0.8574 + 1.5%

USD / JPY 127.67 -1.8% 129.43 129.82 + 10.9%

GBP / USD 1.2206 -0.4% 1.2190 1.2282 -9.8%

USD / CNH (offshore) 6.8165 + 0.9% 6.8014 6.7526 + 7.3%

Bitcoin

BTC / USD 27 942.94 -3.5% 26 769.98 30 175.79 -39.6%

ROHL last VT-Settl. +/-% +/- USD% YTD

WTI / Nymex 105.42 105.71 -0.3% -0.29 + 43.7%

Brent / ICE 107.03 107.51 -0.4% -0.48 + 40.9%

METALS last day before +/-% +/- USD% YTD

Gold (spot) 1,846.94 1,852.46 -0.3% -5.52 + 1.0%

Silver (Spot) 21.11 21.58 -2.2% -0.47 -9.4%

Platinum (Spot) 960.37 994.78 -3.5% -34.41 -1.0%

Future Miedź 4.07 4.21 -3.3% -0.14 -8.6%

===

Contact the author: maerkte.de@dowjones.com

DJG / DJN / flf / once

(END) Dow Jones Newswires

May 12, 2022 09:46 ET (13:46 GMT)

Choose leveraged products at Beyond MeatWith knockouts, speculative investors can disproportionately participate in price movements. Just select the lever you want and we’ll show you the right products open to Beyond Meat

The leverage must be between 2 and 20

No data

Leave a Comment