US MARKETS / equity markets alleviate concerns about inflation | News

NEW YORK (Dow Jones) – US stock markets are falling on Tuesday after a long weekend. The stock exchanges closed on Memorial Day on Monday. Concerns about inflation are driving sentiment after a sharp rise in oil prices and are at their highest level in two months. In addition, there are concerns that the US Federal Reserve will tighten Monetary policy could trigger a recession, market watchers say. Better-than-expected economic data slightly eases fears.

Around noon (New York City time), the Dow Jones index fell 0.6 percent to 33,015 points, and the S&P 500 also fell 0.6 percent. The technologically advanced Nasdaq Composite was down 0.4 percent.

The background to the rise in oil prices is the far-reaching embargo on Russian oil decided by the EU. This affects shipments by sea and thus around two-thirds of the previous Russian oil imports to the EU. Crude oil supplies via the Druzhba pipeline are out of the question.

The trade also refers to the development in the Persian Gulf. The United States and Greece asked Iran to immediately release the two Greek tankers that had been seized. Determination can reduce supply even further. Moreover, given Iran’s behavior, it is difficult to expect an agreement in the nuclear dispute. Therefore, Iranian oil is unlikely to enter the market as an additional supply, it is said. WTI and Brent prices increased by 2.1% and 1.3% respectively.

On the economic side, the consumer confidence index weakened compared to the previous month, but not as much as economists had expected. Meanwhile, in May, sentiment among purchasing managers in the greater Chicago area unexpectedly improved. The index rose to 60.3 points from 56.4 points in April.

Qualcomm with a bonus

On a single-value basis, Qualcomm shares rose 1.3 percent after trading about 1 percent in the negative shortly after the start of trading. The American company apparently wants to use Arma’s upcoming public offering to acquire a stake in a British chip designer owned by Japanese technology investor Softbank. The US chipmaker wants to invest alongside its competitors, said Financial Times, Qualcomm CEO Cristiano Amon. Qualcomm may also work with other companies to take over Arm entirely if it can find a consortium “big enough” to buy, he added.

The euro is falling – crops are rising

Euro gives at consumer prices for May Eurozone after. At times, the single currency fell below the $ 1.07 level. Currently, the euro exchange rate is USD 1.0732. The dollar index rose by 0.1 percent.

8.1% compared to the previous year, inflation in the euro area was much higher than expected (7.6%). While this fuels speculation about a tighter ECB rate to curb inflation than previously signaled, people remain skeptical in retail trade: The resistance in the ECB Council to faster monetary tightening is likely to be high, said in retail trade. An ECB that fails to respond adequately to inflation is a stress factor for the euro.

US bond prices are plummeting. The yield on 10-year securities increased by 10.5 basis points to 2.85%, respectively. Participants refer to statements by Fed governor Christopher Waller. He said half a percentage point interest rate hikes “should not be thrown off the table until inflation approaches our 2% target.” Investors now expect interest rates to increase by 1.75 percentage points this year from the current 0.75 to 1 percent.

“The Fed is pushing for more rate hikes, and Waller’s speech should help dispel speculation that the Fed will not make two more hikes by 50bp or will not raise at its September meeting,” said Tim Duy, chief US economist at the Warsaw School of Economics. Macro advisers.

The price of gold is falling somewhat. Demand for the interest-free precious metal is weighed down by higher market interest rates and a stronger dollar.

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

DJIA 33,014.58 -0.6% -198.38 -9.2%

S&P 500 4 134.58 -0.6% -23.66 -13.3%

Nasdaq Comp. 12,087.21 -0.4% -43.92 -22.7%

Nasdaq-100 12 647.54 -0.3% -33.88 -22.5%

US bonds

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

2 years 2.54 +7.6 2.46 181.0

5 years 2.81 +9.3 2.72 154.9

7 years old 2.87 +9.8 2.77 142.7

10 years 2.85 +10.5 2.74 133.9

30 years old 3.05 +8.0 2.97 114.9

FOREX last +/-% Tue 8:01 Mon 5:31% YTD

EUR / USD 1.0732 -0.4% 1.0747 1.0782 -5.6%

EUR / JPY 137.93 + 0.3% 137.46 137.49 + 5.4%

EUR / CHF 1.0270 -0.5% 1.0318 1.0323 -1.0%

0.8504 EUR / GBP -0.2% 0.8522 0.8519 + 1.2%

USD / JPY 128.53 + 0.7% 127.91 127.50 + 11.7%

GBP / USD 1.2619 -0.3% 1.2611 1.2659 -6.7%

USD / CNH (offshore) 6.6772 + 0.1% 6.6724 6.6717 + 5.1%

Bitcoin

BTC / USD 31 794.16 + 0.0% 31 626.96 30 577.73 -31.2%

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

WTI / Nymex 117.46 115.07 + 2.1% 2.39 + 61.4%

Brent / ICE 123.20 121.67 + 1.3% 1.53 + 62.2%

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

Gold (spot) 1,842.35 1,856.57 -0.8% -14.22 + 0.7%

Silver (Spot) 21.73 21.97 -1.1% -0.24 -6.8%

Platinum (Spot) 963.58 962.00 + 0.2% +1.58 -0.7%

Future Miedź 4.32 4.30 + 0.3% +0.01 -3.1%

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Contact the author: maerkte.de@dowjones.com

DJG / bug / ros

(END) Dow Jones Newswires

May 31, 2022 12:11 PM ET (4:11 PM GMT)

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