- Stoxx 600 -0.6%
- German DAX -1.5%
- UK FTSE 100 -0.9%
- Italy MIB -0.4%
- French CAC -0.4%
- Spain IBEX -0.%
Despite the improved tone in US equities, the DAX closed below the previous June lows and only has two worse closes this year.
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rssIt is PMI day in Europe
Elsewhere, the dollar is steady after a bit of a drop yesterday against the euro and pound although it did keep a decent advance against the commodity currencies. The aussie is the laggard again today with AUD/USD down 0.5% to 0.6890 amid the dwindling risk appetite.
Looking ahead, euro area PMI data will offer something to chew on in the session ahead. We’ll see how resilient the economy is in the wake of more persistent inflation and if recession worries by year-end are becoming more justified.
0645 GMT – France June business confidence
0715 GMT – France June flash manufacturing, services, composite PMI
0730 GMT – Germany June flash manufacturing, services, composite PMI
0800 GMT – Eurozone June flash manufacturing, services, composite PMI
0830 GMT – UK June flash manufacturing, services, composite PMI
1000 GMT – UK June CBI retailing reported sales
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
Fed Chair Powell will face another grilling in Congress on Thursday
Federal Reserve Chair Powell delivered his semi-annual testimony before the US Congress upper house Committee on Banking, Housing, and Urban Affairs on Wednesday, followed up with a Q&A.
Check out the wrap for links:
Powell does it all again on Thursday, he’ll deliver the same testimony to the lower house Committee on Financial Services. A Q&A will follow.
Beginning at 10am Washington time, 1400 GMT:
Powell Throws Biden Under The Bus: ‘Inflation Was High Before Ukraine’
Morgan Stanley targets 3000 in case of recession.. lol just 3k
US gasoline stockpiles lowest since 2015 A tax cut should help
US stocks have an up and down ride today. Close lower on the day.
The final numbers are showing:
- Dow industrial average fell -47.12 points or -0.15% at 30483.14. At session highs the index was up 0.81% and at the lows the index was down -1.19%
- S&P fell -4.9 points or -0.13% at 3759.90. At the high the index was up 0.98%. At the lows the index was down -1.25%
- NASDAQ fell -16.21 points or -0.15% at 11053.09. At the high the index was up 1.33%. At the lows the index was down -1.19%.
- Russell 2000 fell -3.75 points or -0.22% at 1690.27
The top performing stocks in the Dow 30 were:
- United health, +1.9%
- Johnson & Johnson, +1.58%
- Procter & Gamble +1.5%
- McDonald’s +1.38%
- Merck and Company +1.26%
The biggest decliner’s today included:
- Dow, -4.71%
- Caterpillar -4.33%
- Chevron -4.2%
- Nike, -3.52%
- Honeywell -1.54%
Thought For A Day
Focus on things you can control
Most economists surveyed say the Federal Reserve to hike by 75bps in July (Reuters poll)
The latest Reuters poll has 67 of 91 analysts polled forecasting a 75-basis-point Federal Reserve rate hike in July.
- would take the fed funds rate to a range of 2.25%-2.50%, which is around a ‘neutral’ level
The Reuters report goes on:
- A strong majority expect the central bank to hike its policy rate by another 50 basis points in September,
- with opinion more split on whether it will hike by 25 or 50 basis points in November.
- A majority expect the Fed to raise rates by 25 basis points at its December meeting.
- That would take the fed funds rate to a range of 3.25%-3.50% by the end of this year, 75 basis points higher than thought in a poll published just two weeks ago.
- “Since the Fed is still underestimating the inflation problem … not recognizing that a wage-price spiral has already started, we expect they will have to raise rates faster than they now expect,” Philip Marey, senior U.S. strategist at Rabobank, wrote in a note. “Unfortunately, the hiking path is also likely to be followed by a recession.”