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Inflation remains hot, stocks rebound as peak inflation appears to be in place, bitcoin breached USD 30k

At first, it looked like inflation broke the S&P 500’s back as investors sold everything following across the board hot beats with every inflation headline, as the initial take was that the Fed will need to do more to fight inflation. Today’s market reaction to the inflation report will make it hard to attract any investor who is still on the sidelines. The risks on Wall Street are growing and now include a Fed policy mistake, liquidity and credit risks, and growth concerns. The Fed is still

11-05-2022 11:56 GMT by Edward Moya

Pound rises on US inflation, GDP looms

The British pound is in positive territory, as the currency tries to break a four-day losing streak. In the European session, GBP/USD is trading at 1.2355, up 0.36% on the day. US inflation slows, but is higher than expected US inflation dipped in April, but still came in above the forecast.

11-05-2022 10:20 GMT by Kenneth Fisher

Oil rallies, gold remains vulnerable

Oil higher while gas volatile amid Ukraine force majeure Oil prices are rallying on Wednesday after briefly dipping below USD 100. WTI fell back to around USD 98.20 before recovering to trade more than 3% higher on the day.

11-05-2022 09:10 GMT by Craig Erlam

Cautious optimism

Stock markets are pushing cautiously higher again on Wednesday as investors await a huge inflation report from the US ahead of the open on Wall Street. The report is expected to be the first that will indicate inflation has peaked and a sharp decline is underway. That doesn't mean inflation is expected to return to target any time soon but it will come as a massive relief to investors, households and businesses alike after months of watching price pressures accelerate higher. The fear is that th

11-05-2022 09:04 GMT by Craig Erlam

Inflation on the mind of NZ dollar

The New Zealand dollar has posted strong gains on Wednesday. In the European session, NZD/USD is trading at 0.6345, up 0.86% on the day. NZD/USD has been on a nasty slide, with only one winning session since April 20th.

11-05-2022 07:29 GMT by Kenneth Fisher

Euro edges up, eyes US inflation

Lagarde signals a rate hike ECB President Christine Lagarde spoke today at an event sponsored by the Slovenia Central Bank, but what was of most interest were her remarks on future rate hikes. The ECB remains in dovish mode, but with inflation hitting 7.5% in the eurozone, the ECB will be tightening the monetary screws.

11-05-2022 06:28 GMT by Kenneth Fisher

Oil rebounds, gold trading sideways

Oil rallies in Asia Oil prices continued falling overnight as China slowdown nerves and increasingly, US recession fears weighed on prices. In Asia, we have seen a sharp bounce as energy markets price in most China stimulus after benign inflation data, with Ukraine gas disruption likely having a flow-through impact on oil prices. Overnight, Brent crude finished 3.55% lower at USD 101.50, and WTI closed 3.45% lower at USD 99.00 a barrel.

11-05-2022 05:23 GMT by Jeffrey Halley

Currency markets consolidate

US dollar trading sideways Currency markets were content to leave the equity FOMO gnomes to chase their tails overnight, while currencies traded sideways ahead of US inflation data tonight. The dollar index is almost unchanged over the past 24 hours at 103.80 this morning.

11-05-2022 05:07 GMT by Jeffrey Halley

Asia bets on China stimulus

Mainland China stocks are leading the way higher today after China's Inflation data showed a still very benign inflation landscape. Inflation YoY in April climbed to 2.10% (1.8% exp), and Inflation MoM for April increased by 0.40% (0.20% expected).

11-05-2022 04:09 GMT by Jeffrey Halley

US Close - Stock rebound in volatile trade, Crude prices crumble, Gold falls, Bitcoin follows Nasdaq rally

US stocks were all over the place as investors assess a wall of worry that include a weakening consumer, persistent supply chain issues, and growth concerns, while some investors think the selling of stocks is nearing the end. Billionaire hedge fund manager David Tepper noted that he covered his Nasdaq short and anticipates that 12,000 holds for the Nasdaq. The bond market selloff is clearly repositioning itself ahead of tomorrow’s inflation data as the 10-year Treasury yield is well below yest

10-05-2022 15:09 GMT by Edward Moya

Bitcoin - Massive Support

Will it break this time? It goes without saying that it's been a pretty torrid six months for bitcoin since hitting all-time highs close to $69,000. Soaring inflation has forced central banks around the world into action and at the most aggressive pace since the global financial crisis. What's more, there's much more to come, so much so that recessions may well be on the cards. Risky assets have been pummelled as a result, few more so than the ultimate risk asset - bitcoin.

10-05-2022 12:13 GMT by Craig Erlam

Pound stable but markets uneasy

The British pound is in calm waters early in the week, as GBP/USD trades slightly above the 1.23 line. There are no major releases out of the UK or the US, which means that the pound should enjoy a quiet day. Can the BoE get it right? The British pound plunged over 2% last Thursday, a most difficult feat, considering that the Bank of England actually raised interest rates at its meeting that day.

10-05-2022 10:28 GMT by Kenneth Fisher

A small recovery

We're seeing a small recovery in stock markets on Tuesday, as investors dust themselves off following the rout at the start of the week. There's clearly a huge amount of worry about a recession in the markets at the minute as central banks continue to aggressively tighten against the backdrop of a slowing economy and a cost-of-living crisis. There's a lot of pressure on household budgets and it's only going to intensify as the year progresses which will take its toll. The Bank of England alluded

10-05-2022 09:25 GMT by Craig Erlam

Oil extends losses, gold under pressure

Oil slips closer to USD 100 Oil prices are slightly lower again today and not far from double-digit territory as traders grapple with the prospect of recessions and a tightening of Chinese restrictions. The unwillingness and, more accurately, inability of OPEC+ to turn the taps on more is keeping oil prices very elevated but at a little over USD 100, it's more comfortable than was looking probable at times over the last couple of months. The EU struggling to find a coordinated response on Russia

10-05-2022 09:20 GMT by Craig Erlam

Australian dollar falls below 70

Aussie tumbles on risk aversion The Australian dollar is stable on Tuesday, after starting the week with a nasty drop of 1.83%. AUD/USD has dropped to its lowest levels since July 2020, as it trades around 0.6970. Risk aversion remains high, as investors see dark clouds all around.

10-05-2022 06:56 GMT by Kenneth Fisher

Oil slides, gold range trades

Oil prices crushed overnight Oil prices fell heavily overnight as the Fed stability report highlighted recession risks for the US and other countries, and the China slowdown story gathered momentum. President Putin declining to declare an official war on Ukraine also removed a risk factor supporting prices.

10-05-2022 05:10 GMT by Jeffrey Halley

Asian equities follow Wall Street lower

Asian markets fall, ex-China Wall Street suffered another day of recession fears overnight, with equities slumping once again, relying on Bostic’s comments to salve the wounds and cap US yield rises and the US dollar rally. The S&P 500 retreated by 3.20%, with the Nasdaq slumping by 4.29%, and the Dow Jones losing 1.97%.

10-05-2022 04:55 GMT by Jeffrey Halley

Rinse and repeat

Wall Street fall on recession jitters Today is looking remarkably like a rerun of yesterday, especially in US markets. Equities slumped once again, led by the Nasdaq, as did oil and bitcoin.

10-05-2022 04:46 GMT by Jeffrey Halley

Crude prices tumble, gold vulnerable to more pain

Oil slides on China jitters Oil prices are dropping fast as crude demand destruction fears grow given China’s COVID situation and the de-risking event happening with US stocks. An imminent embargo on Russian energy seems unlikely as the EU continues to work on gaining Hungary’s approval.

09-05-2022 13:33 GMT by Edward Moya

Stock selloff resumes, bitcoin nears USD 30k

Risk aversion sends Wall Street lower Wall Street remains uninspired to ‘buy the dip’ as inflation seems poised to remain stubbornly high, which will force the Fed to tighten policy to levels that will jeopardize the soft landing most traders were expecting. No one can confidently answer the question of when stocks will hit the bottom, but if the options market is the primary focal point for many traders, that could suggest downward pressure on stocks could last a while longer. Too many invest

09-05-2022 13:30 GMT by Edward Moya

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