MRKTE USA / high prices of post producers – Oracle Bull | News

NEW YORK (Dow Jones) – US exchanges started trading on Tuesday well after May’s producer prices were in line with expectations. Just after the opening ring, the Dow Jones index gained 0.2 percent. The S&P 500 and Nasdaq Composite are up 0.1 percent. This means that prices account for only a small fraction of their recent losses. According to information from retailers, the market is still dominated by concerns about interest rates and inflation, which will probably prevent a recovery. In view of the US Federal Reserve’s interest rate decision on Wednesday, investors should not take risks either.

Wall Street has been steadily falling since May, data on consumer prices scared the market with an unexpectedly sharp rise on Friday. On Monday, the S&P 500 index closed in the bear market for the first time since 2020. High inflation has fueled fears that the US Federal Reserve will raise interest rates even faster than previously assumed, thus driving the economy into recession. Many market participants expect a 75bp rate hike on Wednesday, although the Fed has signaled a 50bp rate hike so far.

Investors should breathe a sigh of relief at the producer prices (PPI) released on Tuesday. While inflation picked up compared to April, overall prices rose within the expected range and the base rate was even slightly weaker than economists’ forecasts.

The dollar holds up – bond yields are slightly returning

The dollar appears immune to price data after hitting a 19-year high overnight, supported by speculation on a more aggressive US Federal Reserve growth rate. The dollar index is holding up right now.

There is an opposite move in the bond market. Yields, which rose sharply in the previous days, are receding and the yield curve becomes flatter. The gap between the 2-year and 10-year government bond yields has narrowed to a few basis points. There is a risk of an inverted yield curve, and short-term bonds yield higher returns than long-term bonds. This is widely perceived in the market as a recession precursor.

Oil prices are rising more clearly. OPEC has largely left its oil demand forecast unchanged for 2022, but has lowered its supply forecast to reflect the disruptions in Russian oil supplies. In its monthly report for May, the cartel also reported a decline in production due to a significant drop in Libyan oil supplies.

Among the individual shares, Oracle’s price jumped 8.5 percent. The software group increased its sales surprisingly sharply in the fourth quarter. Abercrombie & Fitch grew 2.4 percent. Ahead of Tuesday’s investor event, the apparel chain published its mid- and long-term goals that were well received.

Restructuring plans and associated fees cut Coinbase by 4.6 percent. The crypto exchange sheds 1,100 jobs, roughly 18 percent of the workforce.

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

DJIA 30 568.53 + 0.2% 51.79 -15.9%

S&P 500 3,754.29 + 0.1% 4.66 -21.2%

Nasdaq Comp. 10,815.89 + 0.1% 6.66 -30.9%

Nasdaq-100 11 297.11 + 0.1% 8.79 -30.8%

US bonds

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

2 years 3.30 -5.3 3.35 257.1

5 years 3.44 -3.8 3.48 218.2

7 years 3.43 -2.2 3.45 198.8

10 years 3.34 -2.1 3.36 183.1

30 years old 3.33 -1.7 3.35 143.3

FOREX last +/-% Tuesday 8:11 Mon 17:25% YTD

EUR / USD 1.0446 + 0.4% 1.0419 1.0434 -8.1%

EUR / JPY 140.36 + 0.3% 140.38 139.96 + 7.2%

EUR / CHF 1.0388 + 0.0% 1.0385 1.0399 + 0.1%

0.8654 EUR / GBP + 0.9% 0.8565 0.8578 + 3.0%

USD / JPY 134.33 -0.1% 134.72 134.14 + 16.7%

GBP / USD 1.2069 -0.6% 1.2169 1.2165 -10.8%

USD / CNH (offshore) 6.7478 -0.5% 6.7540 6.7702 + 6.2%

Bitcoin

BTC / USD 22 135.75 -3.8% 22 915.37 23 100.82 -52.1%

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

WTI / Nymex 122.61 120.93 + 1.4% 1.68 + 68.5%

Brent / ICE 123.99 122.27 + 1.4% 1.72 + 64.4%

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

Gold (spot) 1,819.87 1,819.20 + 0.0% +0.67 -0.5%

Silver (Spot) 21.21 21.08 + 0.6% +0.13 -9.0%

Platinum (Spot) 935.32 936.28 -0.1% -0.96 -3.6%

Future copper 4.20 4.21 -0.2% -0.01 -5.4%

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Contact the author: maerkt.de@dowjones.com

DJG / DJN / cln / flf

(END) Dow Jones Newswires

June 14, 2022 09:53 ET (13:53 GMT)

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