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.
upside trend could be determined by several positive factors for the single
European currency. The Euro is rising amid rising positive expectations in the
markets and speeding up of the vaccination process. These factors are reflected
in the German ZEW economic sentiment report that was published on Tuesday. The
reading came out extremely positive at 84.2 that is far above 72.0 points
expected and is a record since March 2000.
other hand, the Euro is seen to be being pushed by the weakness of the U.S.
Major world central
banks are seen to be playing the suicide checkers game in an attempt to keep
their ultra-lose monetary policy as long as possible to provide stimulus for
national economies that are on their way to a recovery from the pandemic. So, the
first central bank to sketch a framework towards tightening its monetary policy
may lose or win regarding the pace of pandemic relief, mass vaccination and
rising business activity.
The U.S. Treasury Secretary Janet
Yellen has made some catching remarks on Tuesday, May 4, which ruffled the
market’s feathers. The topic was a possible interest rate path of motion in the
nearest years, which is a hot-button issue for the stock market. Perpetual
quarrelling about just a theoretically conceivable option of possible earlier
rate hikes by the Federal Reserve (Fed) has been a sensitive area in the past
few weeks of April, until the U.S. regulator's chairman Jerome Powell took off
stock indices are nearly flat but still on the high horse this week, probably
taking a breath before the Federal Reserve's big press conference today. Yet, some
specific assets have performed great in response to their inner corporate
Parcel Service (UPS), a well-known worldwide package delivery and supply chain
management company, urgently jumped to its new all-time highs on Tuesday, with
the current price levels almost 12% above the previous closing price of the
day. Carol Tomé, the CEO of UPS, reported that only Amazon paid $11.
intrigue of the Federal Reserve (the Fed) meeting this week is whether the U.S.
monetary regulator would manifest perseverance in earlier declared loose
monetary policy. Many external factors prompt this policy should be at least tighter
than at the moment: inflation growth exceeding Fed’s projections, increasing
employment, forecasts over unprecedented economy growth in the United States,
additional fiscal stimulus measures from Joe Biden’s Administration.
European Central bank (ECB) has spoiled the rally in Euro as investors bet ECB
may hint on tightening of the monetary policy on its meeting April 22. But the
European monetary policymakers stood still leaving even quantitative easing
in the Euro from 1.17000 to 1.20800 may be attributed to large extent with
rising vaccination, positive expectation of rising business activity and
economic growth in Europe.
decline was followed by both the U.S. and European major indexes on Tuesday. Technically,
a downward correction at some point seemed to become a reasonable consequence
after the continuous updating of new records on Wall Street. Especially since the
initial targets of the recent upward movement near the 4150-4200 range for the
U.S. S&P500 broad market index were called by many experts as the nearest
possible reference area where the market could take a breath.
have gotten used to Bitcoin, the first digital currency, reaching new highs
over recent months. So, the fact that Bitcoin
reached a new fresh record at $64,374 on April 14 may not seem so sensational
any more, even with a heartbreaking upside movement by 5.5% in a single day on
This may be
another reason why the perception around
digital currencies seems to be changing.
Dollar index (DXY) June futures slid under the lowest levels since March 18,
reaching as deep as 91.65 points mark today. The soft landing of the Greenback
continues step by step almost every day during the last two weeks. That
intermediary result is in no way, of course, summarizing a long discussion on
the ability of higher Treasury's yields to make the Dollar more attractive in
principle. But it may leave the whole conception in serious doubt, at least.