China’s CPI rose 0.9% year-over-year in April, versus 0.4% previously; PPI expanded to 6.8% year-over-year in the same month, the largest since 2017, with the obvious impact of commodity price increases.
U.S. Treasury Secretary Yellen’s favorite labor market indicator: the number of JOLTS job openings surpassed a record high of 8.12 million in March. Continued supply chain disruptions and labor shortages are adding to underlying inflationary pressures, according to analysts, sending the decline in tech stocks earlier in the month rippling through the broader market. the MSCI ACWI Index fell 1.3%, the largest closing decline since March 4.
Inflationary logic resurfaced as the market focused on the U.S. CPI data for April released on Wednesday night BST. Markets in Europe and the U.S. fell for two days this week due to a disastrous sell-off in technology stocks. Analysts are concerned that strong inflation in the coming months may push up bond yields, which in turn will depress stocks.
Fed governor Brainard, who has a permanent FOMC vote, said there are good reasons to think the rise in inflation is temporary and that inflation expectations are still well anchored at 2%. Several other officials also hinted that the Fed is in no hurry to adjust its current ultra-loose monetary policy.
U.S. stocks fell two days together but the Nasdaq once turned up, some technology and chip stocks reversed early losses, Chinese stocks outperformed the broader market
On Tuesday, May 11, under the logic of inflation, U.S. stocks opened lower across the board. Highly valued large tech stocks opened hard for the second consecutive day, with value stocks benefiting from economic recovery such as banks, energy and industrials also being affected. The Nasdaq turned higher after midday, led by biotech stocks.
The S&P 500 opened down more than 1%, with the deepest intraday drop of 1.8%. 11 major sectors fell in unison, with technology, semiconductor, energy, aviation and biotech stocks leading the decline. The Dow opened down nearly 278 points, the deepest intraday drop of nearly 668 and forcing 34,000 integers, the largest decline of 1.9% for the worst performance in more than two months, Home Depot (Home Depot) and Boeing to more than 3% decline led the decline. The Nasdaq opened down more than 2%, the deepest intraday drop of more than 294 points or 2.2%, forcing the 13,100-point mark. “Panic index” VIX soared nearly 21%, the daily high of 23.73 hit a two-month high, which had fallen below 16 last month. analysis said that in addition to inflation, the market is also worried about the Federal Reserve was forced to raise interest rates.
By the close of trading, U.S. stocks collectively fell for two days in a row. The S&P 500 index closed down 0.87% at 4152.10 points, the lowest in nearly three weeks since April 23, which had stopped three consecutive suns and fell to a new record high on Monday. The Dow closed down nearly 474 points, its worst one-day performance since February, at 34,269.16, a one-week low since May 5, having halted a five-game winning streak and fallen to an all-time high on Monday. The Nasdaq closed down 0.09% at 13,389.43, a new six-week low since March 31, having ended a two-game winning streak on Monday. The Russell 2000 small-cap index closed down 0.3%, a smaller drop than the broader market, and also turned up once during the day.
The S&P 500 index of 11 major sectors, only materials as the only sector closed higher, another 10 sectors fell, with energy and financial sectors leading the decline. At the opening bell, the companies that fell on the NYSE were 2,069 higher than those that rose, the worst selling pressure in history.
FAAMNG star tech stocks opened in tandem and ended the session mixed, with FB, Amazon and Nifty bouncing back significantly.
Facebook fell more than 2% intraday, falling through $300 for the first time since April 23, but closed slightly higher and halted a two-week losing streak, still hovering at a two-week low. Amazon fell 2% before turning up and exceeding 1%, rising for the first time in three days but nearing a one-month low. Apple fell 3.2% to close down 0.7% and fell for two days to the lowest since April 6, falling through its 200-day average for the first time since April last year during the session. Microsoft closed down 0.4% after falling 1.9%, falling for two days to a one-month low. Nifty fell 1.7% before turning up 1.7%, but remained near a one-month low. Google parent Alphabet closed down nearly a percent after falling 2.5 percent, falling for two days to a two-week low.
The new energy vehicle sector was down broadly early in the session, before reversing after midday. Solid-state battery maker QuantumScape once rose nearly 10%, electric car company Canoo rose more than 11%, Nikola rose more than 5%, Fisker rose more than 4%, Workhorse Group rose more than 11% after once turned down. There are reports that U.S. House Speaker Nancy Pelosi supports the all-electricization of the entire U.S. Postal Service fleet.
Tesla fell as deep as 5.3%, falling below the $600 mark for the first time since April during the session, closing down 1.9% and falling for two days to a six-week low. Tesla turned up 1.6 percent after 6.2 percent, while Xiaopeng closed down 2 percent after falling nearly 10 percent for two days, and Ideal Auto closed flat after falling more than 6 percent.
Bullish on Tesla and other innovative technology stocks, the “Queen of Bulls” Cathie Wood’s flagship fund ARKK once fell nearly 5%, since November 16 last year for the first time since the fall below $ 100. U.S. stocks turned up at lunchtime driven by biotechnology stocks, closing up more than 2%, but not far from the low since late November last year, after a 150% surge last year, down nearly 15% so far this year, down 12% this month.
Chip stocks and technology stocks similar to the beginning of the day, all down, most of the end of the decline narrowed. Philadelphia Semiconductor Index fell more than 3% after closing slightly up, Monday had stopped three consecutive gains. Intel fell nearly 3%, down two days in a row and closed at a three-and-a-half-month low. AMD once fell 4.3%, refreshing the intraday low in July last year, then turned up more than 1%, but still close to a one-and-a-half-month low.
Citi previously issued a “red flag” warning for the personal computer (PC) product market, that April PC shipments fell 13% from the previous year far below expectations, is the first negative data point in the PC chain since the epidemic, will negatively affect Intel and AMD, AMD rating for sell.
Other stocks with large changes include.
U.S. Steel closed up nearly 5%, up nearly 72% cumulatively this year, and was upgraded to Hold from Watch at Morgan Stanley. Medical imaging company Nano-X Imaging fell more than 18 percent after Muddy Waters called it a scam. Novavax fell nearly 14% as its new crown vaccine approval in the U.S. was delayed until the third quarter. Virgin Galactic closed higher after dropping more than 20%, as the company said it is still evaluating the date of its next launch mission. Twitter closed up more than 2% after falling more than 5%, hitting a new January low intraday, as the U.S. Congress filed draft legislation proposing amendments to the regulatory regime for children’s online privacy.
A number of popular Chinese stocks outperformed the broader U.S. stock market, with the Chinese Internet Index ETF up 1.7%, Misty Core Technology up 9%, Futura and Douyu up 6%, Tiger, Poundland, Baidu and Beili Beili up more than 3%, Jingdong and Tencent ADR up 2%, Alibaba up nearly 1%
Following the decline in Asia-Pacific stocks overnight, the pan-European STOXX 600 index closed down 1.97% at 436.61 points, stopping two consecutive gains, which had closed at record highs for two consecutive days on Monday, with travel and leisure stocks plunging 5.7% to lead the broader market. All sectors and national stock indices fell, with German, French and Italian stock indices both down more than 1.6% and British stocks down more than 2%. ICE EU carbon emissions trading permits (futures prices) rose more than 2%, setting a new record high.
Inflation fears sent European and U.S. Treasuries lower, 10-year U.S. bond yields back to 1.63%
The 10-year U.S. bond yield rose by as much as 3 basis points during the day to a daily high of 1.63%, hitting a one-week high since May 3 and breaking the key technical level of the 50-day average. The yield has risen for four days in a row, the longest streak since March 19.
The 30-year U.S. bond yield rose as much as 4.5 basis points to 2.364%, and the long bond yield rose significantly more than the short bond end. The data show that the S&P 500 has fallen 2% since Friday’s close, while the 30-year U.S. bond yield has lifted 7 basis points over the same period.
The 10-year German bond yield rose by more than 5 basis points to -0.16% in late European trading, the largest increase in two months. German bond yields climbed for five consecutive days, at least the longest continuous cycle since April 29. 10-year French, Italian, Spanish and British government bond yields rose by more than 5 basis points during the day, the British bond yields rose the most since March 18.
The dollar fell below 90 for the first time in nearly three months, commodity currencies rose in general, ethereum regained near new highs and chaikin rose another 20%
The ICE U.S. Dollar Index (DXY), which tracks the greenback against a basket of six major currencies, fell as deep as 0.3% during trading Tuesday and fell below the 90 mark for the first time since Feb. 25, hitting a third straight day of nearly 11-week lows.
Optimism pushed the euro to stand firm above the 1.21 handle against the dollar and set a new two-and-a-half-month high since late February as Germany’s ZEW economic sentiment index soared to the highest since a survey was conducted in 2004 due to improved vaccinations in May. The British pound was the highest against the dollar in nearly three years.
The recent rise in commodity prices has driven resource-oriented currencies generally higher. The Canadian dollar is near a four-year high against the greenback, the Australian dollar is holding at a new two-month high against the greenback, and the New Zealand New Zealand dollar is hovering at its highest since February this year.
Bitcoin, the No. 1 cryptocurrency by market capitalization, turned higher in late U.S. trading, forcing back up to the $57,000 mark after having fallen below $55,000 to a one-week low in 24 hours, with the largest intraday range of more than $3,900. Analysts said the odds of the first U.S. bitcoin ETF being approved within the year became slim after a series of comments from SEC Chairman Gensler.
Ether (ETH), the second-largest cryptocurrency by market capitalization, also turned up and rose more than 6% to hit $4,100, having risen above $4,200 for the first time in its history on Monday and hitting a three-day high.
CoinMarketCap data shows that mainstream cryptocurrencies rose on Tuesday. Dogcoin (DOGE), the fourth-largest cryptocurrency by market capitalization, rose more than 14 percent in 24 hours by the close of the U.S. stock market, after falling more than 20 percent on Monday. SHIB (commonly known as Shitcoin), the 17th largest in market cap and up more than 10,000 times in just two to three months, rose 20% in 24 hours and over 1,900% in the past week.
Gold futures hover at three-month highs, copper closes at another record high, driven by weaker dollar and inflation expectations
COMEX June gold futures closed down nearly 0.1 percent on Tuesday, halting a four-game winning streak at $1,836.10 an ounce, having hit its highest since February this year for three straight days on Monday.
Spot gold rose as high as 0.3%, the daily high exceeded $ 1841 / ounce, close to Monday rose through $ 1845 set by the three-month high since February 11, the U.S. stock market late once stopped rising and turned down. Spot silver rose as high as 1% and stood above $27.
Last week, gold had accumulated more than 3% and rose above the key round figure of $1,800, analysts said, weak non-farm payrolls data and inflation fears favor gold, as the latter is seen as a hedge against hyperinflation.
Shanghai copper closed up 0.34% to close above $76,000, having breached $77,000 on Monday to hit a 16-year high. Aluminum closed down 0.48%, easing slightly from Monday’s 13-year high of $20.42 million, having hit a record high of $85,000 in 2006.
Most London base metals closed higher on Tuesday, after closing lower on Monday. LME copper futures closed up $78 at $10,460 per tonne, the highest closing and fourth consecutive day above $10,000, breaking $10,500 intraday, having risen above $10,700 on Monday and hitting a new intraday high for three consecutive days. LON zinc, LON lead and LON tin were back close to new multi-year highs, while LON aluminum fell for two consecutive days and deviated from a three-year high.
In other commodities, domestic agricultural futures rose collectively overnight, with sugar up more than 3%, black and chemicals mixed, and glass up more than 3%. Chicago soybean futures touched $16 intraday, a nearly nine-year high since 2012, but CBOT cork futures hit the Chicago Mercantile Exchange CME’s drop limit. Platts 62% iron ore edged lower, still near record highs.
Earlier, “commodity flag-bearer” Goldman Sachs issued a heavy report that commodities have more upside, remaining long copper, crude oil, natural gas and aluminum.
International oil prices rose for the third day in a row, with crude oil back to $68 and U.S. gasoline futures at a one-week high
“WTI June crude oil futures closed up $0.36, or 0.55%, at $65.28 per barrel on Tuesday. Brent July crude oil futures closed up $0.23, or 0.33%, at $68.55/barrel.
U.S. oil WTI stopped falling and turned up, the U.S. stocks once lost $64 before the bell, the U.S. stocks rose as high as $0.55 or 0.8% during the day, back above $65, basically recovering losses since May 6. International Brent once fell below $ 68 and forced under the $ 67 mark, U.S. stocks back to $ 68 above the intraday high to $ 68.75, the highest intraday rise of $ 0.43 or 0.6%.
The NYMEX June gasoline futures contract once fell 1.8% to a daily low of $2.0947 per gallon, back to levels seen before Friday, but U.S. stocks turned higher after midday and rose above $2.14, a one-week high since May 5.
In news, traders are betting that Colonial Pipeline will restart operations soon, while OPEC raised its 2021 global demand forecast for its crude by 200,000 barrels per day to 27.7 million barrels per day, while U.S. crude and refined products inventory data are expected to show a decline last week.
Recent Comments