Trading Overview: Current Reports, Trends, Indices, Stocks, Bonds, Forex and Commodities and Analyst Recommendations
Technology stocks led the declines on Wall Street as fear returned to markets in the face of rising yields and despite the Fed’s failure to change interest rates yesterday.
The Nasdaq fell 3% on the worst day in three weeks. The S&P index lost 1.5% and thus retreated from the peak. Oil has plunged about 8% on the worst day since September to below $ 60 a barrel.
Trading on Wall Street is conducted in the Red Territory in the shadow of rising government bond yields, led by the Nasdaq index, which fell 2.4 percent. The Dow Jones and the S&P 500 are retreating from the peak. The Fear Index (VIX) jumps more than 12%. Technology stocks Apple and Amazon are down 3% each.
The price of oil has fallen by about 8% on the worst day since September to below $ 60 a barrel. This is against the background of a surprising increase in inventories in the US, along with the fear of disruptions in demand due to tightening restrictions due to the corona. Further to Italy and Germany, France announced a partial closure in the shadow of the corona in the shadow of record coronation.
On Wall Street, the indices are trading in a mixed trend, with the rise in yields weighing heavily on the Nasdaq, which is down 1.7%. On the other hand, the Dow Jones is up 0.4% and the S&P 500 is down 0.5% from its peak. Bitcoin is up 2.5% and kissing $ 60,000.
Trading on European stock exchanges closed with gains led by the German DAX, which jumped 1.3%. The Kak rose 0.1% and the Potsy added 0.24%.
The Biden administration is examining traffic easing taken as a result of the spread of the corona virus starting in mid-May, according to a report overseas.
Oil is down 4% to $ 61 a barrel. Crude crude oil inventories in the U.S. rose 2.4 million barrels last week, according to the Energy Information Authority (EIA), contrary to estimates by the U.S. Petroleum Institute (API), which forecast a decline of one million barrels.
Trading on Wall Street opened down in the wake of rising US government bond yields despite the soothing Fed announcement yesterday that the central bank is not documenting rising interest rates any time soon.
The NASDAQ index loses 1.2%, the Dow Jones is unchanged and the S&P 500 loses 0.5% of its value, thus retreating from the high it set last night.
Initial claims for unemployment benefits in the United States last week were about 770,000, compared with economists’ expectations of about 700,000 claims.
As expected, the Bank of England left interest rates unchanged. In addition, the BOE has not changed its bond purchase policy.
The yield on 10-year US government bonds climbs to about 1.74%, a 14-month high.
Wall Street futures are trading down 1.7%.
In the run-up to the Bank of England’s interest rate decision (to be published today at 14:00), Itai Yosha from Bank Hapoalim’s trading room estimates that the UK interest rate is expected to remain at 0.1% and the central bank is not expected to increase its weekly bond purchases (estimated About £ 4.5 billion) as the European Central Bank recently did. The bank will refer to the increase in guillotine yields (risk-free government bonds) in line with the global trend as a positive sign of a recovery in the economy, but is expected to indicate in the interest rate announcement the fear of a too rapid increase in yields. “
Slight increases in the opening of trading on European stock exchanges. The yield on 10-year US government bonds climbs to about 1.72%.
Bitcoin has climbed again and is now trading at around $ 59,000 after recording a sharp rise yesterday. Sagi Bakshi, CEO of the fintech company CoinMama, notes that “2021 will be remembered in history as the year Bitcoin entered the mainstream. The turning point was undoubtedly the launch of Bitcoin by PayPal, and immediately after that Tesla acquired Bitcoin as a currency hedge worth a billion and a half dollars. In the case of holding Bitcoin in a bank – we are left with the same historical model that Bitcoin is meant to change, and that is the need for a third party. Holding the private key is becoming more accessible to the public with the development of interfaces. “
Asian stock markets are trading in a positive trend today, after rising gains on Wall Street last night. Wall Street indices are trading in a mixed trend.
Bitcoin has climbed again and is now trading at around $ 59,000 after recording a sharp rise yesterday. Gold also climbs 1.2 percent to $ 1,748 an ounce (April contract).
Morgan Stanley, one of the largest U.S. banks, announced yesterday that it will allow its affluent customers to invest in Bitcoin. Morgan Stanley is the first major U.S. bank to allow affluent customers (those with more than $ 2 million in capital). The bank manages various wealth funds totaling about $ 4 trillion for its affluent customers, and will allow customers “with the ability to withstand great risks” who have a managed account for at least 6 months to invest in the volatile crypto currency.
The yield on 10-year US government bonds now stands at about 1.66% after yesterday it climbed to 1.68% and after the Fed announcement dropped to 1.64%.
The Federal Reserve yesterday left, as expected, US interest rates unchanged at zero. In its announcement, the Fed said it expects an increase in inflation and growth in the US this year. Although more members of the Fed’s Open Markets Committee noted that they estimate the Fed will start raising interest rates in 2022, most committee members still estimate that interest rates will remain zero until 2023.
Nadav Ofir, a global markets strategist at Bank Hapoalim’s Chamber of Commerce, notes in a statement that the Fed said it expects interest rates to be “close to zero” by 2023. This is the first time the central bank has used this phrase and the choice of words has not been accidental. In terms of growth and employment, however, the Fed is still examining the sectors most affected by the Corona epidemic and its perception, they are far from returning to the level of performance before the Corona. In the two figures that the Fed defined as extremely important – employment and growth. ”
“As of this writing, Powell does not appear to be troubled by rising yields and is doing nothing to change the momentum of rising yields. If indeed the U.S. economy is in a better place, yields in the longer part of the curve should be higher.”
Regarding raising interest rates, Ophir notes, “Market expectations are that more and more Central Bank committee members will be convinced that the interest rate hike should be brought forward, probably from 2023 to mid-2022 at this point.