Archiv für den Monat: Mai 2023
Stocks making the biggest moves premarket: Walmart, Take-Two Interactive, Bath & Body Works and more
Market’s tech focus is ’shortsighted,‘ with a broader bull run coming, portfolio manager says
Global debt nears record highs as rate hikes trigger ‚crisis of adaptation,‘ top trade body says
Stocks making the biggest moves after hours: Take-Two Interactive, Cisco Systems and more
Bath and Body Works‘ stock surges after it raises guidance, beats on earnings
Alibaba plans to list cloud division as quarterly revenue misses expectations
Walmart raises full-year guidance, as earnings beat on boost from grocery and online businesses
The USD is the strongest and the GBP is the weakest as the North American session begins
U.S. President Joe Biden is in Japan for the G7 meeting discussing key global issues, while the spotlight stays on the resolution of the debt ceiling talks back home. The President has expressed optimism, emphasizing that the U.S. „will not default“ and citing ongoing negotiations with top Congress members. He is expected to return to Washington on Sunday to aid in reaching an agreement, which Republican leader Kevin McCarthy believes is feasible by the weekend. Despite guarded optimism, no formal resolution has been reached, and a potential government default looms as early as June 1.
The day’s economic agenda commences at 8:30 am with the release of the Canadian New Housing Price Index (NHPI) data. The forecast suggests a slight dip of -0.1%, compared to the previously recorded 0.0%. In the US at the same time, Unemployment Claims are expected to decrease to 253K from the previous count of 264K (the 4-week average was the highest since November 2021). The Philadelphia Fed Manufacturing Index is also set to be unveiled with an anticipated improvement to -19.5 from a previous -31.3. Recall, the empire manufacturing index fell sharply on Tuesday (to -31.8 from 10.8 in the previous month). At 9:05 am, remarks from FOMC Member Jefferson are scheduled, followed by FOMC Member Barr at 9:30 am. Their commentary could provide valuable insights into the Federal Reserve’s perspective on the state of the economy and monetary policy.
At 10:00 am, the release of US Existing Home Sales data, is forecasted to decline to 4.30 million from the previous figure of 4.44 million. Additionally, the Conference Board Leading Index on a month-on-month basis is expected to report a smaller decrease of -0.6%, an improvement from the previous -1.2%. FOMC Member Logan is also slated to speak during this hour. The sharp decline is forecasting a recession in the US going forward (nothing new).
A tentative release of the Bank of Canada’s (BOC) Financial System Review is on the docket, with no specific time provided. At 11:00 am, remarks from the Bank of Canada’s Governor Macklem are scheduled, potentially shedding light on Canada’s monetary policy direction.
Overnight, in the Asian Pacific session disappointing labor market data for April was released. Jobs in the economy shrunk while the unemployment rate jumped higher (however, the unemployment remains near record lows so it is not all bad). Nevertheless, the data today in addition to the subdued wages data published yesterday, along with other indications showing some steam coming out from the Australian economy should give the Reserve Bank of Australia reason enough to pause at its upcoming June 6 meeting. New Zealand PPI was lower than expectations.
Montana is the first US state to ban TicTok. The decision is expected to be challenged in the courts. If the ban is maintained it will go into effect in January and will raise tensions between the US and China.
A look around the markets is showing.
- WTI crude oil is down $0.05 or -0.07% at $72.78
- Gold is down $5.70 or -0.29% at $1975.77
- Silver is down $0.18 or -0.84% at $23.54
- Bitcoin is back about the $27,000 level at $27,377. The price low reached $26,550.
In the premarket for US stocks, the major indices are marginally higher after yesterday’s gains:
- Dow industrial average is up 14.23 points after yesterday’s sharp 408.63-point rebound
- NASDAQ index is up 37 points after yesterday’s 157.51-point rise
- S&P index is up 8.25 points after yesterday’s 48.89-point rise
Although it is a banking holiday in Europe, stocks continue to trade:
- German DAX +1.64%
- Frances +0.92%
- UK’s FTSE 100 +0.49%
- Spain Ibex +0.64%
in the US debt market, yields are higher:
- 2-year yield 4.186% +3.0 basis points
- 5-year yield 3.617% +2.6 basis points
- 10-year yield 3.602% +2.1 basis points
- 30-year yield 3.89% +1.1 basis points
This article was written by Greg Michalowski at www.forexlive.com.
ForexLive European FX news wrap: Dollar continues to strut its stuff
- The dollar’s resilience should not be understated
- EUR/USD hovers near key support with large expiries in play today
- USD/JPY flirts with key resistance region, 140 being eyed next?
- AUD/USD looks resigned to test the March and April lows again
- DAX closes in on record highs again as equities maintain the optimism
- ECB’s de Guindos: There is still scope to keep raising rates
- BOE’s Bailey: I do not envisage balance sheet returning to pre-financial crisis level
Markets:
- USD leads, GBP lags on the day
- European equities higher; S&P 500 futures up 0.2%
- US 10-year yields up 1.9 bps to 3.600%
- Gold down 0.3% to $1,975.66
- WTI crude down 0.2% to $72.67
- Bitcoin up 0.1% to $27,365
It was a quiet session with not many headlines, as some parts of Europe are on holiday and with there being no major economic releases whatsoever.
That did not stop the dollar though, as it continues its grind higher and to test key levels in EUR/USD and USD/JPY.
The former is closing in on key support near 1.0800, although there are large option expiries limiting the downside push for now. Meanwhile, the latter is also running up against recent highs around 137.77-91 at the moment as buyers look for a breakout towards 140.00.
This comes despite equities continuing to show much optimism, with European indices rallying hard after the Wall Street gains yesterday. US futures are also slightly higher, so that is helping with the mood. Of note, the DAX is just inches away from fresh record highs set last year at 16,285-90.
As the dollar holds more resilient again, GBP/USD is seen down 0.4% to 1.2440 as the retreat this week continues while AUD/USD is down 0.3% to 0.6640 as the aussie is dragged down by softer jobs data earlier.
It’s a rare sight to see the dollar move higher in a time where stocks are also performing well, but it is what it is at the moment in markets.
Traders have been quick to price in relatively dovish Fed expectations since the regional banking crisis but perhaps that is now backfiring as high inflation is keeping the Fed on course to hold rates higher for longer, alongside economic conditions that are holding up in the US.
This article was written by Justin Low at www.forexlive.com.