The development mimics the trend of startup „mafias“ in the U.S., where companies like PayPal indirectly helped produce huge businesses like Tesla and Palantir.
Archiv für den Monat: Mai 2023
European banks are stronger than their U.S. rivals, analysts say. Here’s why
Attendees of the Institute of International Finance conference in Brussels said European banks were in a strong position, but needed support to grow.
China’s new ambassador to the U.S. arrives to ’safeguard‘ Beijing’s interests
Xie Feng, China’s new ambassador to the U.S., arrived in New York Tuesday with a call to „safeguard the interests of China,“ according to a release.
Abercrombie & Fitch surges 18% after reporting surprise profit
Mall apparel retailer Abercrombie & Fitch surprised investors with a fiscal first quarter profit, sending shares surging.
Chinese Tesla rival shares dive 11% after it forecasts a plunge in car deliveries
Xpeng has been hurt by a tough macroeconomic situation in China as well as rising competition from Tesla, BYD and electric car startups.
Kohl’s shares spike as retailer reports a surprise profit
Kohl’s unexpectedly posted a profit and reaffirmed its full-year guidance.
Shares of Urban Outfitters spike after fiscal first-quarter earnings beat
Shares of Urban Outfitters spiked about 8% after the company reported fiscal first-quarter earnings that beat on the top and bottom lines.
ForexLive European FX news wrap: UK core inflation runs hot
Headlines:
- UK April CPI +8.7% vs +8.2% y/y expected
- Markets move to price in an additional rate hike by the BOE after UK CPI data
- Dollar stays in favour as equities slump
- Ifo economist: German economy heading towards stagnation in Q2
- Germany May Ifo business climate index 91.7 vs 93.0 expected
- UK May CBI trends total orders -17 vs -20 prior
- US MBA mortgage applications w.e. 19 May -4.6% vs -5.6% prior
- China president Xi says wants to take Russia cooperation to a higher level
- China premier Li reaffirms pragmatic cooperation with Russia in latest meeting
Markets:
- JPY leads, NZD lags on the day
- European equities lower; S&P 500 futures down 0.4%
- US 10-year yields down 2.5 bps to 3.675%
- Gold up 0.3% to $1,981.22
- WTI crude up 1.7% to $74.14
- Bitcoin down 1.8% to $26,727
The UK CPI data was the main highlight in European trading today, with core annual inflation running hot at its fastest pace since March 1992. Headline annual inflation did fall in April but was higher than estimated, though that owes mostly to base effects adjustment on energy prices.
The sticky inflation numbers saw the rates market move to price in an additional rate hike by the BOE in the months ahead, with the peak in the bank rate now seen above 5.25% from roughly 5.00% before the data.
The pound got a brief lift on it as well, with GBP/USD touching 1.2465 only to fall back upon testing its 200-hour moving average. The drop was compounded further by a stronger dollar, as risk sentiment soured in the aftermath of the hotter inflation numbers. The pair then fell to a low of 1.2365 before keeping around 1.2390 now.
As risk sentiment took a hit, the dollar and yen are the two lead gainers today for the most part. EUR/USD dropped earlier to 1.0750 but large option expiries at the level is holding the line for now, before the pair trades back to near unchanged levels now at 1.0770.
Looking at stocks, European indices slumped early on in a catch up to Wall Street losses yesterday but extended the declines after the UK CPI data. That also saw US futures turn light gains into losses on the session with bond yields caught in a bit of a tailspin so far today.
Going back to FX, the kiwi is the biggest loser as it owes much to the RBNZ policy decision earlier. The central bank signaled an end to rate hikes and that already saw NZD/USD drop 1% in Asia before extending its declines to near 2% in Europe in a fall to 0.6117, before holding around 0.6130 now.
In the commodities space, gold is fighting back with a bounce above $1,980 but the likes of copper and iron ore are facing trouble with some steep losses today.
This article was written by Justin Low at www.forexlive.com.
US MBA mortgage applications w.e. 19 May -4.6% vs -5.6% prior
- Prior -5.7%
- Market index 205.0 vs 214.9 prior
- Purchase index 158.3 vs 165.4 prior
- Refinance index 443.0 vs 468.2 prior
- 30-year mortgage rate 6.69% vs 6.57% prior
A surge higher in rates in the past week weighed further on mortgage applications with both purchases and refinancing activity slumping heavily. The market index is the lowest since the first week of March as housing market conditions continue to be impacted adversely by the Fed’s tightening.
This article was written by Justin Low at www.forexlive.com.
Dollar stays in favour as equities slump
S&P 500 futures are now down 16 points, or 0.4%, with major European indices posting losses of around 1.5% to 1.8% at the moment. The sour mood is keeping the dollar underpinned, with the currency stretching gains now on the session.
EUR/USD is down 0.2% to session lows at 1.0750, with large option expiries now in play. Meanwhile, GBP/USD has erased its earlier jump post-CPI and the rejection at the 200-hour moving average has seen the pair fall further to 1.2370 currently:
That’s the lowest levels in a month for the pair with the 10 April low at 1.2344 a focus point from a technical perspective, before a potential drop towards the 100-day moving average at 1.2280.
Elsewhere, the dollar is also maintaining a decent advance against the commodity currencies with USD/CAD up 0.4% to near 1.3560 and AUD/USD down 0.7% to 0.6565 – testing the lows highlighted here.
NZD/USD is the biggest loser though as the pair is down nearly 2%, building on losses after the RBNZ earlier. The pair is now down to 0.6120 and looks poised for a test of key support at 0.6100-11 next.
This article was written by Justin Low at www.forexlive.com.