Fed officials continue to release signals that inflation is only temporarily on the upside, but under the influence of rising home prices, the number of new home sales in the U.S. fell more than expected in April, and consumer confidence at the Conference Board fell more than expected in May. Federal Reserve officials’ statements failed to override the negative impact of the lukewarm economic data on U.S. stocks. Energy-led sectors sank, plus most leading technology stocks such as Amazon and Apple turned lower during the day, and the three major U.S. stock indexes turned lower collectively during the day.
The Fed’s second-in-command, Vice Chairman Clarida, said that future Fed meetings could start discussing QE tapering; the upward pressure on prices will prove to be mostly temporary. Chicago Fed President Evans and Fed Vice Chairman for Supervision Quarles also both poured cold water on the idea that the inflation upswing will last in their statements. And Monday the Fed governor Brainard and three other Fed officials on inflation in line with the statement. Since then San Francisco Fed President Daly said that the April Fed minutes mentioning possible future discussions on QE cuts should not be interpreted as the Fed’s readiness to tighten money, and the U.S. economy is far from the point where the Fed needs to tighten.
U.S. stocks were lower when strong demand for 2-year U.S. Treasury notes were marked for sale, helping to push U.S. bond yields further downward. The dollar index fell further after Fed officials reiterated signals to remain accommodative, and gold futures, supported by a lower dollar and bond yields, continued to rise, rising above key resistance at $1,900 for the first time in more than four months.
In other commodities, under the pressure of China’s efforts to curb commodity price increases, some industrial metals such as copper futures sank in the foreign market; the stimulation of rainfall, the U.S. crop spring planting accelerated, pushing crop futures all down, corn hit the largest intraday decline in nearly two years; the Northern Hemisphere summer driving season is approaching, demand growth, coupled with the relaxation of the positive anti-epidemic restrictions, the withdrawal of Iranian oil sanctions concerns were offset, crude oil continued to up.
In European markets, European stocks continued to be supported by technology stocks higher, but mining stocks led by falling copper and other commodities bucked the market; European Central Bank President Lagarde said on Friday that it was too early to discuss tapering monetary stimulus, after which yields on European Treasuries continued to move lower and prices held higher.
The Dow gave back more than 100 points of intraday gains to end two consecutive positive Energy sector led the S&P down Chinese education and brokerage stocks bucked the market higher
The three major U.S. stock indexes opened higher and lower in early trading, all turned lower and set new daily lows at the end of the morning session, after which they all turned higher and alternated between gains and losses, all with small fluctuations. The S&P 500 index rose nearly 0.4% at the beginning of the session, down more than 0.2% when the new daily low. Dow Jones Industrial Average rose nearly 120 points at the beginning of the session, down more than 80 points when the new daily low. The Nasdaq Composite Index rose more than 0.6% at the beginning of the session, down more than 0.2% at the new daily low.
In the end, the three indices collectively closed lower for the first time in the last four trading days, falling at least two weeks high. The Dow closed down 81.52 points, or 0.24%, at 34312.46, ending a two-day winning streak and falling off the closing high set on Monday since May 10. The S&P closed down 0.21% at 4188.13 points and the Nasdaq closed down 0.03% at 13657.17 points, both down from the closing highs set on Monday since May 7.
Small-cap stocks continued to underperform the broader market, with the value-cap-dominated Russell 2000 failing to reverse losses after turning lower in early trading, closing down 0.97%. The tech-heavy Nasdaq 100 closed up 0.12%, continuing to outperform the broader market.
Of the 11 major sectors in the S&P 500, five closed lower and six closed higher on Tuesday. Declining sectors, down about 2% in energy led the decline, followed by a decline of nearly 1.4% in utilities, finance and materials fell nearly 1% and 0.9%, respectively, the bottom of the decline was down nearly 0.3% in health care. Up in the sector, in addition to the rise of more than 1.3% of non-essential consumer goods, other sectors rose less than 0.4%, the smallest increase is less than 0.1% of information technology.
A number of leading technology stocks turned down during the day, closing up or down. Monday rose more than 4% of Tesla early that turned down, closing down nearly 0.3%. FAANMG six major technology stocks, Apple, Amazon, Google parent company Alphabet, Nifty had turned down mid-day, only Facebook and Microsoft to maintain the momentum, respectively, closed up nearly 1% and 0.4%, Amazon turned up at lunchtime after closing up more than 0.4%, the end of the Alphabet turned up slightly up 0.08%, Apple closed down nearly 0.2%, Nifty fell more than 0.3%.
Popular Chinese stocks rose, Chinese ETF ASHR rose more than 3%, CQQQ rose more than 2%, KWEB rose more than 1%, individual stocks in education stocks led the rise, New Oriental rose more than 20%, good future rose more than 18%. Brokerage stocks rose sharply, Tiger Securities rose over 15%, FuTu Securities rose over 8%. Zhihu rose more than 8%, and Doodle Intelligence and NetEase Youdao rose more than 7%. Tencent ADR rose more than 3%, Weibo, Douyu and GaoTou rose more than 4%.
In Europe, the pan-European stock index rose for four days in a row, and the Euro Stoxx 600 index hit its last record high for the second day in a row. Up in the sector, up more than 1% of technology is far ahead, but mining stocks are in the sector of basic resources and oil and gas are down more than 1%, leading the decline. Among individual stocks, German property stocks Deutsche Wohnen rose nearly 16%, the country’s property giant Vonovia agreed to buy it for 18 billion euros. Major European stock indexes were mixed on Tuesday, with German stocks off on Monday to extend last week’s rally and hit a new record high after more than a month.
The U.S. dollar index hit a four-and-a-half-month low and the offshore yuan turned lower during the day after hitting a near three-year high. Ether once fell more than 10 percent
The ICE dollar index (DXY), which tracks the exchange rate of a basket of six major currencies, fell below 89.60 in early European trading to hit a new intraday low since Jan. 7, down more than 0.3 percent during the day, after which the decline narrowed, with U.S. stocks approaching 89.80 during the day, erasing most of the week’s losses.
By Tuesday’s U.S. stock market close, the dollar index was slightly below 89.70 to 89.696, down more than 0.16% on the day; the Bloomberg Dollar Spot Index fell 0.1%.
Offshore yuan (CNH) rose above the 6.40 mark to 6.3922 at midday in Asia and before the European stock market, a new high since June 2018, up more than 170 points during the day, after which it gradually retracted its gains, the U.S. stock market turned down in the morning and lost 6.41 at midday. 5:59 p.m. Beijing time on the 26th, the offshore yuan was at 6.4113 yuan against the U.S. dollar, down 17 points from Monday’s end of New York, down from It was down 17 pips from Monday’s New York late session, off the high set on Monday since the end of New York on Feb. 15.
CoinMarketCap data showed that the mainstream cryptocurrencies that rallied big on Monday fell collectively on Tuesday, with the fourth largest cryptocurrency by market capitalization, BNB, down more than 6% in the last 24 hours, the sixth and fifth largest cryptocurrencies, Dogcoin (DOGE) and Cardano (ADA), down around 5%, the 13th largest cryptocurrency, Litecoin (LTC), down nearly The 12th largest cryptocurrency, Bitcoin Cash (BCH), fell more than 2%, and the seventh largest cryptocurrency, Ripple (XRP), fell more than 1%.
Bitcoin (BTC) had been approaching $40,000 in early Asian trading, with some platforms rising to $40,000, before falling back, with European shares once falling below $36,500 during the session to set a new daily low, down more than $3,000 from the intra-day high, a percentage drop of nearly 9%, and US shares back on $37,000 in early trading, with US shares closing below $37,800, down more than 4% in the last 24 hours.
Ether (ETH), the second largest cryptocurrency by market capitalization after Bitcoin, fell below $2,400 during the European session, dropping about 14% from its intraday high, and was below $2,600 at the close of the U.S. session, down more than 3% in 24 hours.
The three major crops fell together, corn hit the biggest drop in nearly two years, crude oil three consecutive positive refresh a week high
The domestic black system rose and fell, most of the agricultural products fell, overnight coking coal rose nearly 1%, power coal, iron ore rose slightly, threads, hot coils fell more than 1%, coke fell 0.3%; corn fell more than 1%, vegetable meal fell 0.92%, soybean meal fell 0.82%, palm, starch, cotton were down slightly.
The three major U.S. crops fell together, CBOT corn futures closed down 5.6% at $6.2025/bushel, down about 6% intraday, the largest intraday decline since August 2019, falling below $6.20 intraday to refresh the low since late April. CBOT wheat futures closed down more than 0.8%, having fallen 2.3% intraday to $6.4675/bushel, a record low since mid-April New lows. CBOT soybean futures, which fell more than 1% during the session, closed down about 0.7%.
International crude oil futures rose for the third day in a row, setting a new one-week high.
U.S. WTI July crude oil futures closed up $ 0.02, or 0.03%, at $ 66.07 / barrel, for two consecutive days since last Monday, May 17, the main contract closed at a new high; Brent July crude oil futures closed up $ 0.19, or 0.28%, at $ 68.65 / barrel, for two consecutive days since May 18, a new closing high.
European bonds rose for three consecutive days 10-year U.S. bond yields hit another two-week low
European Treasuries rose collectively in price for three consecutive days, with yields continuing to fall, and Treasuries of marginal zone countries still led the decline in yields. British 10-year benchmark Treasury yields fell 2.5 basis points to 0.786% during the day; German government bond yields fell 2.7 basis points to -0.167% during the same period, once falling to -0.17% below a two-week low. The yields of Italian and Greek government bonds fell by more than 6 and 5 basis points, respectively.
The yield on the benchmark 10-year U.S. Treasury note stayed down, falling below 1.57% for the first time since May 10 during the U.S. lunch session, hitting a new two-week intraday low for the second day in a row, to about 1.56% by the U.S. close, down 5 basis points during the day and once after the bell to below 1.56%, refreshing the low since May 10, at a low before the release of the unexpectedly weak U.S. nonfarm payrolls report. Spit back last week’s release of the Fed minutes and last week’s release of the April U.S. CPI surpassed expectations after a large increase in gains.
In addition to the Shanghai copper domestic non-ferrous are up, copper fell for three consecutive days closed below 10,000 U.S. dollars
The domestic market is up except for Shanghai copper. Overnight Shanghai copper closed down 0.79%, Shanghai aluminum closed up 0.16%, Shanghai zinc closed up 0.94%, Shanghai lead closed up 0.16%, Shanghai nickel closed up 0.06%, Shanghai tin closed up 0.42%.
London base metal futures continued to be mixed on Tuesday, just out of this month’s trough of copper fell back to close at $ 9918 / ton, closing below 10,000 for the third consecutive day. Just ended a three-day and four-day losing streak of Lunnickel and Lunn Aluminum resumed the downward trend, with Lunn Aluminum approaching a four-week low again. While Lun-Lead and Lun-Tin ended a two-day losing streak, respectively, out of more than three weeks and a week trough. Zinc rebounded after ending a two-day losing streak.
Gold hit a new high in more than four months, the first time in four and a half months rose above $ 1900
Precious metals rose, gold, silver and platinum futures in New York rose for two days, palladium ended a four-day losing streak, out of the trough hit on Monday since the end of March.
COMEX June gold futures closed up 0.7% at $1898.00 per ounce, two consecutive days of new highs in the main contract closing since January 7, after a brief retreat on Friday, extending the momentum of the four-day streak of new highs since January 7 as of last Thursday. After the close, futures moved further higher, rising above the $1,900 mark for the first time since Jan. 7.
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