U.S. retail sales fell 1.3% in May from a year earlier, well below market expectations for a 0.7% decline, while core retail sales fell 0.7% from a year earlier, also below expectations for a 0.2% increase.
Following the highest CPI since the financial crisis in May, U.S. inflation indicators exceeded expectations again, with PPI jumping 6.6% year-over-year in May, the highest in history since statistics became available in November 2010, as commodity inflation continued to be the main driver of inflation.
In addition, U.S. housing developer confidence fell to a ten-month low, with construction costs raising concerns. The size of the Federal Reserve’s use of reverse repo tools on Tuesday was $509.6 billion, down $74 billion from the previous day, the largest decline in two months since April 1, but more than $500 billion for five consecutive days, having hit a record high of $583.9 billion on Monday.
Europe and the United States signed an agreement to declare a “truce” in the seventeen-year dispute over aircraft subsidies, and the two economies will end the imposition of tariffs on each other’s exports of $11.5 billion. European Commission President von der Leyen said the EU and the United States to suspend the steel and aluminum countermeasures for six months.
U.S. stocks fell in unison, technology and chip stocks fell in general, Tesla lost $600 for the first time in a week, and pan-European stock indexes made record highs for eight days in a row
U.S. stocks were lower on Tuesday, June 15, after U.S. PPI inflation exceeded expectations, as investors awaited the results of the Federal Reserve’s FOMC monetary policy meeting announced Wednesday, trying to understand the Fed’s views on interest rates, the economy, inflation and tapering of bond purchases.
The three major U.S. stock indexes only the Nasdaq opened lower, the S&P 500 once rose 0.1% to an intraday record high of 4257.16 points, then turned lower and fell the deepest 0.4%, with the deepest 0.9% drop in the Nasdaq fell together with yesterday’s record closing high, the Dow fell nearly 195 points deepest. Real estate and technology were the leading losers, with the biotech index down about 1.6% and energy stocks leading the way with gains of more than 2%.
By the close of trading, the S&P 500 stopped three consecutive gains, closing down 0.2% and off the record high at 4,246.59 points. The Dow fell for two days in a row, losing 34,300 points, closing down 0.27% at 34299.33 points, hitting a three-week low since May 21. The Nasdaq also halted its three-day winning streak, closing down 0.71% and off its all-time high at 14,072.86. Russell 2000 small-cap stocks closed down 0.3%, slightly underperforming the broader market.
FAAMNG star technology stocks all fell. Facebook turned from up to down, Amazon closed slightly down after falling 0.6%, Apple and Microsoft both fell 0.6%, Nifty fell 1.6%, and Google parent Alphabet fell 0.8% and fell off its all-time high.
In news, the U.S. Senate confirmed tech industry antitrust critic Lina Khan as a commissioner of the Federal Trade Commission (FTC), reflecting the bipartisan willingness of lawmakers to impose more regulation on large tech companies, which the White House said it would nominate as FTC chairman. Meanwhile, the U.K.’s Competition and Markets Authority will review Apple and Google’s cell phone ecosystems.
Tesla fell nearly 3%, missing $600 for the first time in a week, as its German factory plans to seek public comment by Aug. 16. Mizuho reiterated its Buy rating on Tesla with a price target of $820, saying the company’s electric vehicle sales are trending strongly and it is on track to exceed 10 percent of the global auto market share if all goes according to plan. ARKK, the flagship ETF of Sister Wood, the “bull queen” who is heavily betting on Tesla, fell 2.7% to the lowest since June 10.
Most of the U.S. new energy auto stocks fell, with Tucson Future down more than 6%, Nikola down more than 9%, and Fisker down more than 7%, but Lordstown, which has plunged recently, turned up more than 11%. China’s “Three Idiots of Carmaking” all fell, with Xiaopeng down 5.7%, Azera down more than 3%, and Ideal Auto turning down in late trading. General Motors turned up after the deepest drop of 1.3%, still close to the low in early June, the company’s self-driving car unit Cruise LLC. has started pilot production of driverless electric cars with specific purposes, is expected to be completed and put into testing this summer.
Most chip stocks fell more than 1%, with the Philadelphia Semiconductor Index closing down 0.9%, halting a three-game winning streak. Intel fell 0.3%, AMD, Nvidia and Qualcomm all fell 1.3%, TSMC turned down 1.3% after rising 0.8% at the beginning of the session, retreating from a month and a half high.
Among other key stocks.
Most of the retail hold concept stocks, blockchain concept stocks fell. Express fell 7.7%, Naked Brand Group fell 2.6%, GameStop fell more than 3%, but AMC rose nearly 4%. Kanan Technology fell nearly 4%, Marathon Digital turned up more than 2%, and China Net Carrier fell more than 5%.
Novavax Pharmaceuticals fell nearly 10% to its lowest since June 4 after the company announced an agreement with broker-dealer B. Riley to issue $500 million in shares on the market.
MicroStrategy, a well-known long in the cryptocurrency world, rose more than 5% to its highest since May 3 as bitcoin returned to $40,000. The company completed a $500 million debt offering last week and on Monday intends to issue $1 billion in additional shares with the main purpose of buying more bitcoin.
Chinese stocks were mostly lower. Alibaba fell 1.8% to $210, a one-month low since May 14, Tencent ADR fell 0.6% to a three-week low since May 24, Jingdong once fell more than 1%, Baidu fell 1.9% to the lowest since May 14, Beili Beili fell 3.8%, retreating from a month and a half high, Tiger Securities fell more than 16%, BOSS direct employment fell more than 5% on its third day of listing. However, Poundland rose as high as 3.4% to close up 0.3%. Rebounded from the low since June.
Among them, Uxin used cars rose more than 12% at the beginning of the session, then quickly turned down and fell as deep as 21.8%, forcing down $4, closing down nearly 13%, the lowest since June 4, after the company announced a financing deal of up to $315 million in size.
On the day before the Fed’s FOMC resolution, most European stocks were higher, with the pan-European Stoxx 600 index closing up 0.11% at 458.81 points, closing at a record high for the eighth consecutive day, but basic resource stocks fell more than 2%. European stock indexes in Italy and Spain only slightly down, Germany’s DAX 30 closed up 0.4% to hit a closing high, France’s CAC 40 rose 0.4%, approaching the closing high set on June 2, 2000.
U.S. oil WTI closed at $72, and Brewer’s oil rose for four consecutive days, both setting new two-and-a-half-year highs
WTI July crude oil futures closed up $1.21, or 1.70%, at $72.12 per barrel. Brent August crude oil futures closed up $1.13, or 1.55%, at $73.99/barrel.
U.S. oil WTI rose as much as $1.27 or 1.8% during the day, with the daily high breaking through $72 to $72.15, continuing a two-and-a-half-year high since October 2018. International Brent oil prices rose for four days in a row, up $1.13 or 1.6% intraday, with daily highs forcing the $74 round figure, also a two-and-a-half-year high.
Analysis points out that before the Iranian presidential election later this week, it is unlikely to see additional Iranian crude oil supply quickly back to the market, this threat receded pushed up the price of oil. Russia will raise its oil export tax to $61.50 per ton from July 1, and Goldman Sachs, the “commodity super cycle flag bearer,” continued to say that the possibility of oil prices rising to $100 per barrel is not ruled out as the supply-demand imbalance increases in the second half of the year.
Gold fell three days in a row nearly a month low, copper and nickel fell 4%, copper eight and a half months the largest percentage drop
COMEX August gold futures closed down 0.5%, down three days in a row, at $1,856.40 per ounce.
Spot gold fell as much as $14.50 or 0.8% during the day, losing the $1860 round number and falling below the daily low of $1,852, close to the one-month low set on Monday when it hit $1,843.99. Spot silver fell 1.6% at its deepest during the U.S. session, with the daily low falling below $27.40 per ounce, and COMEX silver futures also fell to 1.5% at $27.61 per ounce.
Most of the domestic futures night black system rose, coke rose more than 2%, but London base metal futures fell on Tuesday, copper and nickel are down more than 4%, copper bulls cut positions before the release of the Federal Reserve resolution statement.
LME copper futures closed down $402 or 4%, the largest closing percentage drop since October 1 last year, at $9570 per ton and fell through the 50-day average, which had briefly regained the $10,000 mark to an intra-month high on Friday and had hit an all-time high in May. Lunar aluminum lost a new three-month high, while Lunar nickel closed down $741 off a four-week high. Tin and lead stopped their two-day streak of gains, with tin closing down $188 from a 10-year high and zinc and lead both retreating from more than one-week highs.
As mentioned in the Wall Street Journal, some commodities are already brewing lower as investors fear that rising inflation will trigger a shift in Fed policy. The slowdown or decline in some commodity price gains provides a signal and reason for the Fed’s “dovish” stance and continued policy patience.
Bitcoin Turns Up and Hovers at $40,000 as Dollar Nears One-Month High, Ether Relatively Lags
The ICE U.S. Dollar Index (DXY), which tracks the exchange rate of a basket of six major U.S. dollar currencies, fell in Asian trading as U.S. stocks turned higher before the bell, reaching a daily high of 90.68, still nearly a month high. The Bloomberg Dollar Index once rose 0.2% to a daily high as the Mexican peso and the commodity currency, the Australian dollar, weakened. Analysis said the dollar market traded cautiously before the Fed’s key FOMC conclusions.
The euro stood firm against the dollar above the 1.21 handle, but near a one-month low. The pound turned down 0.2% against the dollar and lost 1.41, refreshing one-month lows. The Australian dollar fell 0.5% against the U.S. dollar and fell below 0.77 after minutes of the last Reserve Bank of Australia meeting showed the central bank was prepared to continue buying debt despite the economy having recovered to pre-epidemic levels. the offshore yuan traded at 6.4078 yuan against the U.S. dollar, back above 6.41 yuan.
Bitcoin, the largest cryptocurrency by market capitalization, fell below $40,000 and its 200-day average at one point on Tuesday, before the U.S. stock market returned above that round-number psychological mark during the session, rising 0.9% in 24 hours to get back close to a three-week high. Ether, the second-largest market cap, edged up in 24 hours, standing steady at $2,500 and once above $2,600. Mainstream cryptocurrencies were mostly down today, with Ripple down more than 3% and down relatively more.
10-year U.S. bond yields fall below 1.50%, European bond yields rise for two days
The 10-year U.S. bond yield fell below 1.50% again after the U.S. stock market lunch, after once moving up nearly 1 basis point, having risen about 5 basis points on Monday, coming off a three-month low hit by falling below 1.43% during Friday’s session, having traded at 1.60% in early June.
The 30-year U.S. bond yield stayed up 2 basis points during the day, back above 2.20%, with the daily high once surpassing 2.21% to a one-week high, also off the lowest since early March set last week.
Today the U.S. Treasury auction $ 24 billion 20-year Treasury bonds, the bid rate of 2.120%, 20-year U.S. bond yields fell 1.81 basis points in the short term, hitting a low of 2.1110%, making the overall intraday gain narrowed to less than 0.6 basis points.
Tuesday, late in the European market, Germany, France and the United Kingdom 10-year bond yields are up nearly 2 basis points, the United Kingdom government bond prices stopped five consecutive increases, other countries, the price of government bonds recorded two consecutive losses, Monday had stopped four consecutive increases.
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