|
| |
Market Wrap: Stocks, Bonds, Commodities |
|
|
| |
|
|
|
| |
On Tuesday, the tech-heavy Nasdaq 100 once dropped over 2% before rebounding to close at 11,779, 194.22 points higher (+1.68%) compared to the prior session. The S&P 500 added 6.06 points (+0.16%) to 3,831, while the Dow Jones Industrial Average declined 129.44 points (-0.42%) to 30,967.
Recession fears seemed to have replaced inflation worries as the major factor weighing on market sentiment. U.S. oil futures sank below the key level of $100 a barrel, while the U.S. 10-year Treasury yield declined a further 5.7 basis points to 2.824%.
The media (+3.24%), retailing (+2.81%) and consumer durables & apparel (+2.72%) sectors outperformed the market, while the energy (-4.01%), utilities (-3.43%) and materials (-2.00%) sectors were the biggest losers.
Etsy Inc (ETSY) jumped 10.56%, Norwegian Cruise Line (NCLH) rose 9.97%, Caesars Entertainment (CZR) advanced 9.68%, Micron Technology (MU) climbed 5.74%, American Airlines (AAL) increased 5.71%, Dollar Tree (DLTR) added 5.48%, and Tesla (TSLA) was up 2.55%.
Cowen Group (COWN) soared 28.66% on reports that the company could be acquired by Toronto-Dominion Bank.
1Life Healthcare (ONEM) also jumped 24.88% on merger & acquisition rumors.
On the other hand, energy stocks slid hard as oil prices were dragged by recession fears. U.S. WTI crude futures plunged $8.80 (-8.11%) to $99.65 a barrel. Halliburton (HAL) dropped 8.08%, APA Corp (APA) declined 7.41%, ConocoPhillips (COP) sank 6.97%, and Marathon Oil (MRO) was down 6.30%.
Also, Freeport-McMoRan (FCX) lost 6.64%, and Archer-Daniels-Midland (ADM) was down 5.27%.
U.S. official data showed that factory orders grew 1.6% on month in May (vs +0.5% expected).
European stocks closed lower. The DAX 40 fell 2.91%, the CAC 40 declined 2.68%, and the FTSE 100 was down 2.86%.
Gold price slumped $41 (-2.32%) to $1,766 an ounce, the lowest level in over six months.
Copper price once fell to $7,597 a ton on the London Metal Exchange, the lowest level since December 2020, before settling at $7,670. |
| |
|
|
|
|
|
|
|
|
| |
The U.S. dollar added to its strength against other major currencies, thanks to bidding for heaven assets driven by recession fears. The dollar index advanced to 106.52, the highest level since December 2002.
EUR/USD plunged 153 pips (-1.47%) to a 20-year low of 1.0269, as investors anticipated that the European Central Bank, amid growing fears of a recession, could not raise interest rates as aggressively as the U.S. Federal Reserve.
France's industrial production was stable in May as compared to April (vs -0.4% expected).
GBP/USD dove 160 pips (-1.32%) to 1.1958.
AUD/USD slid 63 pips to 0.6802. As expected, the Reserve Bank of Australia raised its benchmark interest rate by 50 basis points to 1.35%. The central bank hinted at further hikes over the months ahead.
USD/JPY added 29 pips to 135.91.
USD/CHF gained 71 pips to 0.9683, and USD/CAD jumped 164 pips to 1.3025.
Bitcoin showed resilience while trading at levels around $20,200. |
| |
|
|
|
|
|
|
|
|
| |
In Asian trading hours, EUR/USD remained subdued at 1.0265, while GBP/USD edged up to 1.1968.
USD/JPY retreated to 135.25.
Gold price rebounded slightly to $1,770 an ounce.
Bitcoin slipped to $19,840. |
| |
|
|
|
|
|
|
|
|
| |
The eurozone's retail sales are estimated to be down 0.5% on month in May.
Germany's factory orders are expected to drop 5.1% on month in May.
In the U.K., May S&P Global construction purchasing managers index is estimated at 54.0.
In the U.S., the Federal Reserve will release its latest FOMC meeting minutes. Meanwhile, June ISM non-manufacturing purchasing managers index is expected at 55.2, while May JOLTS job openings are anticipated at 11.3 million. Also, Final readings of June S&P Global services purchasing managers index is expected at 51.6. |
| |
|
|
|
|
|
