bulls were routed during the first trading day of the week, both at the
American and the European battlefields. The U.S. S&P 500 broad market index
futures initially lost 96 points just one hour before the closing of Monday's
session, touching the local bottom, which was 3.65% lower compared with the
multi-month high of 4384.38 points on July 14.
As the U.S.
Federal Reserve’s (Fed) head Jerome Powell and Treasury Secretary Janet Yellen
are ready for two days of Congressional testimony, against a thrilling
background of another inflation spike in the American economy, the three major
New York stock indexes continue to consolidate tranquilly in the direct
neighbourhood of all-time highs. The U.S. consumer price index (CPI) set a
fresh record of 5.4% annual growth, with the so-called "core" CPI
excluding food and energy segments also hitting the 4.5% bar, which is an
absolute maximum of domestic price dynamics since 1991.
The stocks of
the U.S. financial system grandees are on the rise again, after about a
three-week period of a corrective mood. On the night of June 28th to 29th, five
of the six largest American banks increased the amount of their quarterly
dividends, soon after the Federal Reserve System (Fed) gave permission for this
move. As a whole, the dividend sizes for these six financial institutions would
be increased by 40%. However, each financial institution has made its own
decision about the scale of the increase.
were temporarily disturbed last week with a seemingly surprising projection for
the first potential rate hike "as soon as" the second half of 2023
instead of 2024 as mentioned in previous Federal Reserve’s (Fed) forecasts. On
the contrary, Jerome Powell, the U.S. Fed’s head, has mitigated some market
worries in a hearing before the House of Representatives panel on Tuesday, June
22. In fact, he performed just in a way, which market optimists expected from
the official first rank Fed's frontman.
pan-European composite Euro Stoxx 50 index showed its maximum value for the
last 13 years on Tuesday, June 15, exceeding the landmark of 4,150 points for
the first time since the spring of 2008. This record has not yet been
replicated in the course of today's European session, but the stocks are still
near record highs. Financial and industrial sectors, and oil companies are
among the leaders of today's upside move.
World markets are mainly treading water ahead of the U.S.
inflation data due to be released this Thursday.
The expert community survey by media giants Bloomberg and Reuters is expecting
on average that the consumer price index (CPI) in May could reach as much as
4.7% year-on-year. If so, it may set the second record in a row for the last 13
years since the summer of 2008, when the U.S. CPI was at 5.6% at some
The previous indication of consumer prices for April showed
sideway movements in a rather tight price range seem to have become a zero-sum
game. But that is not the case, as both of the two major markets are still
deriving benefits and capitalising on their mutual competition.
manufacturing purchasing managers index (PMI) for the Eurozone, which is an
important indicator of the Old World's business activity, came out at 63.1
points yesterday. This is only two-tenths of a point below the April's record
preliminary estimate for April, which was later lowered to a value of 62.9
points after the follow-up revision.
early Asian hours, the Chinese Yuan performed at its maximum value against the
U.S. Dollar since June 2018. In both its mainland and offshore trading
sessions, USD/CNY and USD/CNH have shown their three-year lows near 6.3920 and
below 6.38, respectively. The onshore Renminbi remarkably rose through the key
levels that pushed state banks of China to intervene at the beginning of the
week. The latter circumstance may make any further big move of the exchange
rate more laboured and risky, but not impossible.
are seen to be keeping sideway movements after last week's shake-up with a
happy-end style rebound. Both the U.S. and the European indexes tried their
best to build on the progress in the first half of the day on Tuesday, but
failed to break last Friday's peak levels and, therefore, they changed at least
an intraday sentiment to the slightly downside direction today.
on? Shares of many companies may not be ready to move smoothly up the
trajectory, similar to a straight line, without more noticeable dips on the
A downward correction in stocks was long expected by many
in the market, but at the same time, it began on Monday evening as a kind of
surprise, with no particular excuse or a satisfactory starter. There were no
alarming verbal remarks of any officials or weak statistical data right at the
moment. Some similar drop would still have been more appropriate last Friday,
May 7, after the U.S.