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NEW YORK (Dow Jones) – US stock exchanges appear on Wednesday, but their distribution is uneven. First of all, recent heavily depressed tech stocks have clearly benefited from falling market interest rates. The Dow Jones index rose 0.9 percent to points, while the S&P 500 and Nasdaq Composite rose 1.2 percent respectively. Traders generally talk of not very strong counter-movement to the recent slide.
All the dominant topic is the Federal Reserve’s interest rate decision, which will be announced at 20:00 CEST. Given the persistently high inflation, market participants now expect the Fed to raise rates by 75 basis points instead of the recently signaled 50 basis points. The last time a central bank made such a large change in interest rates was in 1994. “Now that the market has swallowed the 75bp pill, it would be irrational for the Fed not to make a larger rate hike,” Swissquote analyst Ipek Ozkardeskaya comments on market expectations.
this Financial markets Hargreaves Lansdown analyst Susannah Streeter has already predicted a more aggressive monetary tightening amid sharp drops in prices over the past few days. Expectations have grown that policyholders will hit the brakes hard and raise interest rates by 75 basis points to prevent inflation from getting out of hand, it adds. At the same time, there are also concerns that the Fed would thus stifle economic growth and lead to a recession, with serious consequences for global economic growth. Streeter anticipates constant nervousness.
Before the Fed’s decision, investors still have to deal with other economic data, which are almost unnoticed in the face of the upcoming interest rate decision: the Empire State Index rebounded in June, but remained negative, contrary to expectations. level zero. Import prices rose less than expected in May. Retail sales fell slightly last month, while economists expected a slight increase. The retail sector (+ 2%) clearly does not react to the weak data.
The EU court’s decision supports Qualcomm
Corporate news is rare. Qualcomm rose 0.6 percent after the European Court of Justice lifted a multi-billion EU fine against a chip manufacturer. Zendesk shares increased by 3.3 percent. A software company is in talks with activist investor Jana Partners after a sale failed.
Car rental Hertz (+ 10%) announced another $ 2 billion share buyback, just seven months after the previous one. Nucor grew 2.9 percent after the steel concern announced record second-quarter results.
The dollar weakened slightly, the dollar index fell by almost 0.1 percent. However, the dollar has already outpaced speculation on interest rate hikes. If there is indeed a 75bp rate hike, the US currency is likely to continue to weaken, in line with the motto “buy the rumor sell the fact”, ING predicts. This reaction is likely to be temporary, however, as the dollar will benefit from higher interest rates in the long run.
The yields come back slightly
In the bond market, prices are rising again after the recent sell-off. In return, the yields are falling this time, although they are still at their long-term peaks. Gold is gaining more noticeably. Falling bond yields make the non-interest bearing precious metal more attractive again. In addition, a weaker dollar makes gold cheaper for buyers other than the dollar.
Oil market prices are falling. US crude oil inventories rose against expectations, while analysts predicted a decline. A smaller increase was recorded in data published the day before by the private American Petroleum Institute (API). Production in the USA is also growing. Overall, the data paints a new picture of the oil market.
INDEX last + / -% absolute + / -% YTD
DJIA 30 510.46 + 0.5% 145.63 -16.0%
S&P 500 3 771.82 + 1.0% 36.34 -20.9%
Nasdaq Comp. 11,023.06 + 1.8% 194.71 -29.5%
Nasdaq-100 11 502.67 + 1.7% 190.99 -29.5%
Term Profitability Bp to VT Profitability VT +/- Bp YTD
2 years 3.34 -7.9 3.42 261.0
5 years 3.50 -9.2 3.59 223.9
7 years 3.50 -8.0 3.58 206.2
10 years 3.41 -7.1 3.48 189.7
30 years old 3.40 -3.1 3.43 149.7
FOREX last +/-% Wed 8:38 Tue 17:20% YTD
EUR / USD 1.0386 -0.3% 1.0444 1.0416 -8.7%
EUR / JPY 139.68 -1.1% 141.21 140.46 + 6.7%
EUR / CHF 1.0408 -0.3% 1.0467 1.0424 + 0.3%
EUR / GBP 0.8613 -0.8% 0.8719 0.8672 + 2.5%
USD / JPY 134.49 -0.8% 134.98 134.86 + 16.8%
GBP / USD 1.2056 + 0.5% 1.2002 1.2010 -10.9%
USD / CNH (offshore) 6.7192 -0.5% 6.7206 6.7562 + 5.7%
BTC / USD 21 314.78 -1.0% 21 102.09 22 397.34 -53.9%
ROHL last VT-Settl. +/-% +/- USD% YTD
WTI / Nymex 117.21 118.93 -1.4% -1.72 + 61.1%
Brent / ICE 119.94 121.17 -1.0% -1.23 + 59.0%
METALS last day before +/-% +/- USD% YTD
Gold (spot) 1,821.87 1,808.40 + 0.7% +13.47 -0.4%
Silver (Spot) 21.53 21.11 + 2.0% +0.42 -7.6%
Platinum (Spot) 934.73 925.03 + 1.0% +9.70 -3.7%
Copper Future 4.16 4.16 + 0.1% +0.00 -6.4%
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DJG / DJN / flf / cln
(END) Dow Jones Newswires
June 15, 2022 12:19 PM ET (4:19 PM GMT)
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