U.S. inflation fever, following the June CPI, June PPI also exceeded expectations for a big increase, the fastest year-on-year growth rate since 1982; UK inflation also exploded, June CPI hit the largest year-on-year increase in nearly three years. But U.S. stocks before the bell Fed Chairman Jerome Powell hinted at keeping super-easy, saying at a hearing that the economic recovery process is not enough for the Fed to start tapering QE, reiterating that high inflation is temporary, saying that the significantly higher inflation rate will fall back. European and U.S. Treasury yields moved lower, with 10-year U.S. bond yields off one-week highs; the dollar retreated; European stocks narrowed losses.
U.S. stocks opened higher during Powell’s hearing, but the crude-influenced energy sector led the decline, Tesla continued to move lower, and all three major stock indexes had turned lower during the session. Apple shares hit a record high after news broke that suppliers were asked to increase next-generation iPhone production by 20%, leading leading technology stocks. Bank of America, which reported poor interest income in the second quarter, fell more than 5% at one point, the largest intraday drop in eight months, while Citi and Wells Fargo, which reported higher-than-expected earnings in the second quarter, shook in the middle of the day, with Citi erasing more than 3% of its early gains to turn down, and Wells Fargo having fallen more than 1% in early trading, turning up at lunchtime.
Top Chinese stocks were mixed, with Alibaba and Tencent teaming up to move higher, while Jingdong fell more than 2% during the session and Poundland once fell nearly 6%. Media said Ali and Tencent are considering opening up their ecosystems to each other, with Tmall and Taobao possibly opening up to WeChat Pay and WeChat possibly allowing Tmall and Taobao to do WeChat shopping applets. This is seen as bearish news for Poundland and Jingdong.
Bitcoin fell below $32,000 intraday for the first time in more than two weeks, though it turned higher intraday as the dollar accelerated its retreat, and most other cryptocurrencies rallied.
In commodities, the much-hyped OPEC+ oil production divergence remained unresolved, with the UAE Energy Ministry denying OPEC+ reached an agreement to increase production after news of a compromise between Saudi Arabia and the UAE, and crude oil diving intraday despite last week’s eighth consecutive week of US EIA crude oil inventory declines beyond expectations, with US oil down 4% at one point; after Powell said inflation would grow moderately after months of high growth, getting Gold, supported by the dollar and lower U.S. bond yields, rallied; Lund tin continued to set new 10-year highs, but most industrial metals such as copper retreated, with comments that markets are concerned about demand from China and uncertainty about rising inflation.
S&P Dow nears record highs Energy sector leads declines Nasdaq in two straight losses Tesla continues to bottom among leading tech stocks Apple at record high
The three major U.S. stock indexes opened collectively higher, hitting new intraday highs for the fourth consecutive day early in the session, before turning down collectively and briefly late in the morning. The S&P 500 was up 0.56% on the day when it reached a record high, and was down nearly 0.16% when it turned lower on the short term. The Dow Jones Industrial Average rose 180 points when it reached a record high, and had fallen more than 60 points when it turned down in the short term. Nasdaq composite index rose nearly 0.8% at the beginning of the session when the record high, the end of the morning session and the afternoon session had a short turn down.
Ultimately, the three major indices only the end of the turn down the Nasdaq closed lower, down 0.22%, at 14,644.95 points, down two days in a row. S&P 500 closed up 0.12% at 4374.30 points, the Dow closed up 44.44 points, or 0.13%, both approaching the record high set on Tuesday, the second highest closing level in history.
Small-cap stocks underperformed the broader market for the third day in a row, with value stocks dominating the small-cap index Russell 2000 opening lower, turning lower in early trading and then continuing to move lower, closing down 1.63%. The tech-heavy Nasdaq 100 index closed up 0.17%.
The S&P 500’s 11 major sectors, six closed down on Wednesday, led by the energy sector, which fell more than 2.9%, finance fell nearly 0.5%, materials, health care, non-essential consumer goods fell about 0.2%, and industrial fell slightly. Up in five sectors, real estate rose nearly 0.9% to lead, utilities rose more than 0.8%, information technology rose more than 0.7%, consumer goods rose nearly 0.6%, telecommunications services rose slightly.
Most blue-chip technology stocks rose, but Tesla continued to fall, closing down more than 2% for the second consecutive day, still the worst performance in leading technology stocks. six major technology stocks in FAANMG, only down more than 1% of Facebook closed lower, Apple rose more than 2% to a new closing high, Nifty rose more than 1%, Google parent company Alphabet rose 0.7%, Microsoft rose more than 0.5%, Amazon rose more than 0.1% .
Bank stocks continued to mostly fall, the five largest banks fell, Bank of America closed down 2.5% again led the decline, Goldman Sachs and Citi fell more than 0.4%, JPMorgan Chase fell nearly 0.4%, Morgan Stanley fell 0.8%, while Wells Fargo closed up nearly 4%.
Popular Chinese stocks, Tencent ADR closed up more than 1%, Alibaba rose nearly 1%; Predo fell more than 2%, Jingdong fell more than 1%. Sohu, which surged more than 27% on Tuesday, fell nearly 0.4%, while Sogou continued to rise, closing up more than 0.1%. Douyu fell 4.8% all the way back to Tuesday’s gains, and Tiger fell 0.5% after rising nearly 6% on Tuesday. Chinese ETF CQQQ fell nearly 0.8%, and KWEB fell more than 0.4%.
European stocks, the pan-European stock index Euro Stoxx 600 index ended a three-day streak of gains and two days of record highs in the trend, the sectors, only six closed up on Wednesday, up 0.9% of the mining stocks in the sector led by basic resources, followed by technology rose nearly 0.7%. Among the 13 declining sectors, both down about 1% in real estate and travel and leisure led the decline. Major European stock indices were mixed on Wednesday, with German and French shares closing flat, with German shares still close to the record highs set on Monday, while British and Western shares fell for the second day in a row and Italian shares erased some of Tuesday’s losses.
10-year U.S. bond yields fall 7 basis points off one-week highs
The yield on the benchmark 10-year U.S. Treasury note rose above 1.42% in early Asian trading, hitting a new intraday high for the second day in a row, and then continued to move down to about 1.35% at the close of U.S. stocks, down about 7 basis points during the day, giving back all the gains after Tuesday’s June CPI surge and unexpectedly weak 30-year U.S. bond bid, falling to below 1.35 after the bell.
European government bonds rose in price on Wednesday, with German bond yields leading the decline. The British 10-year benchmark Treasury yield fell 0.5 basis points to 0.627% during the day; the German bund yield fell 2.5 basis points to -0.319% during the same period, hitting a new low since July 8.
U.S. oil fell 4% intraday to close down more than 2%, the biggest drop in nearly two months in the closing session
After the UAE denied that OPEC+ had reached an agreement to increase production, international crude oil futures fell rapidly during the day, with U.S. WTI crude falling once by 4% and Brent crude once by more than 3%, having fallen below $73 and $74 during the day, respectively.
Eventually, WTI August crude oil futures closed down 2.82% at $73.13/barrel, the largest closing decline in the month contract since May 19; Brent September crude oil futures closed down 2.26% at $74.76/barrel, the largest closing decline since last Tuesday, July 6, and U.S. oil are the lowest closing level in the last four trading days.
U.S. gasoline and natural gas futures fell. NYMEX August gasoline futures closed down 1.1%, giving back most of Tuesday’s gains; NYMEX August natural gas futures closed down 1%, down two days in a row.
Dollar index falls off near three-month high, offshore yuan at new three-week high Bitcoin turns up after falling below $32,000 for the first time in more than two weeks
The ICE U.S. Dollar Index (DXY), which tracks the exchange rate of a basket of six major U.S. dollar currencies, had been above 92.80 in early Asian trading, approaching the intraday high set last Wednesday since early April, but it turned lower in early trading and has continued to fall since then, falling below 92.40 in U.S. trading at midday to a new daily low of 92.36 when it fell more than 0.4% on the day.
By Wednesday’s U.S. stock market close, the dollar index was below 92.40, down about 0.4% intraday; the Bloomberg Dollar Spot Index fell 0.5%, all but giving back Tuesday’s gains.
Offshore yuan (CNH) rebounded, with the offshore yuan at 6.4592 against the dollar at 5:59 p.m. GMT on the 15th, recovering the 6.46 handle at the end of New York for the first time since June 17, up 205 points from Tuesday’s end of New York, having come close to recovering 6.45 during the session, a new intraday high since June 18.
Bitcoin (BTC) European shares were once tested at $31,600 during the day, hitting a new intraday low since June 27, falling below $32,000 for the first time in more than two weeks, after which it rebounded and regained $33,000 at midday in the U.S. to refresh the daily high, up more than $1,000 from the intra-day low, with a percentage gain of nearly 5%, and the U.S. stock closed above $32,800, up more than 1% in the last 24 hours.
Ether (ETH), the second largest cryptocurrency after Bitcoin in terms of market capitalization, fell below $1,870 during the Asian session, hitting a new intraday low since June 27 and falling below $1,900 for the first time in more than two weeks, with U.S. stocks back on $2,000 in early trading to refresh daily highs, up more than 8% from intraday lows, with U.S. stocks closing close to $2,000, up nearly 3% in 24 hours, the best performance among the top 10 cryptocurrencies .
CoinMarketCap data shows that most of the mainstream cryptocurrencies that have fallen for days rebounded on Wednesday, and by the close of the U.S. stock market, the 12th largest cryptocurrency by market capitalization, Bitcoin Cash (BCH), rose nearly 2% in the last 24 hours, the sixth largest cryptocurrency, Ripple (XRP), rose more than 1%, the fifth and 13th largest cryptocurrencies, Cardano (ADA) and Litecoin (LTC), rose nearly 0.8%, the fourth largest cryptocurrency coin (BNB) rose 0.6%, while the eighth largest cryptocurrency dogcoin (DOGE) fell more than 1%.
Copper fell below $9,400 for the second time in five days, while tin hit a 10-year high in three days. Gold hit a new one-month high and its biggest gain in more than five weeks.
Most London base metal futures fell on Wednesday. Copper fell back, falling below $9,400 for the second time in the last five trading days, while aluminum and nickel also fell, off one-week and four-month highs, respectively. Zinc fell for a third straight day to a new low of more than two weeks. Lead fell for the second day in a row, falling further off a three-year high. However, LON tin rose for three days in a row, closing above $32,600 per tonne, a three-day streak of new ten-year highs.
New York gold futures rose for two days in a row, intraday once rose above $1830, up nearly 1.2% during the day. COMEX August gold futures closed up 0.8% at $1825.00 per ounce, refreshing the closing high set on Friday since June 16, and the largest closing gain since June 4. New York silver and platinum futures both rebounded, closing up 0.5% and 1.5%, respectively, erasing Tuesday’s losses. Palladium closed down 0.2%, down for a second straight day.
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