Search
EN Down
Language
Hi, user_no_name
Live Chat

European stocks cool, Wall Street mixed as markets may see inflation rising

 

Stock Retracement After Highs

European stock markets fell back in early trade on Tuesday as the positive momentum eased a bit. The FTSE 100 dipped a quarter of a per cent to trade at 8,400, with similar modest losses elsewhere on the continent.  

Wall Street finished mixed on Monday with the Nasdaq posting a record intraday and closing highs as Nvidia stock rose 2% ahead of the company’s Q1 earnings update on Wednesday; the Dow Jones fell half a per cent as JPMorgan shares fell 4.5% after CEO Jamie Dimon suggested the stock was overvalued.  

Dimon said he wouldn’t repurchase stock at the current levels, which investors took as an implicit indication the stock is overpriced. The market seemed to say: “OK, well if you don’t want to buy back stock at that level, how do you like this level?”.

Meanwhile, Nvidia caught some bullish analyst calls ahead of the earnings tomorrow. Options markets imply an 8% move in the stock — for a $2.3tn company that is very significant.

Choose your points of movement

Сalculate your hypothetical P/L (aggregated cost and charges) if you had opened a trade today.

Market

Shares Search
Shares
Index
Commodity
Bonds
Crypto
ETFs
Currency

Instrument

Search
Clear input
Occidental
Prosus N.V.
Porsche AG
Hermes
CAT
Thermo Fisher
Nikola Corporation
Tilray
Shell plc (LSE)
Skillz Inc
Iberdrola
DeltaAir
CrowdStrike Holdings
Golar LNG
Applied Materials
Snowflake
Royal Bank Canada
Amazon.com
Spotify
Exxon Mobil
CCB (Asia)
McDonald's
Campari
GameStop
Netflix
ON Semiconductor
Costco
Dave & Buster's
Delivery Hero SE
LUCID
Continental
SunPower
Zoom Video Communications
Schlumberger
Virgin Galactic
Upwork Inc.
Cameco
JP Morgan
Fuelcell
Rivian Automotive
XPeng Inc
Wal-Mart Stores
Trade Desk
Blackstone
Vodafone
Aptiv PLC
L'Oreal
Target
Rio Tinto
Sartorius AG
British American Tobacco
Qorvo
ASOS
Cisco Systems
Nel ASA
Arista
Airbus
Apple
Pfizer
AMC Entertainment Holdings
ASML
Hubspot
Teladoc
Starbucks
SMCI
Canopy Growth
Wish.com Inc
Lockheed Martin
ProSiebenSat.1
IAG
AbbVie
Marston's
Baidu
Teleperformance
Norwegian Air Shuttle
Airbus Group SE
HSBC HK
Block
Annaly Capital
Abbott
LVMH
American Express
Novavax
GoPro
Siemens
Total
SIG
Pinterest Inc
Taiwan Semi
Etsy
Amgen
SONY
3D Systems
UPS
Yandex
BlackBerry
Gen Digital Inc
Xiaomi
Quanta Services
Unity Software
NVIDIA
Anglo American
Palantir Technologies Inc
Fresnillo
Deere
Rolls-Royce
Porsche
Uber
Vir Biotechnology
American Airlines
ROBLOX Corp
Macy's
FirstRand
easyJet
DISNEY
Aurora Cannabis Inc
BP
Adidas
Boeing Co
Vonovia
Coca-Cola Co (NYSE)
Home Depot
General Electric
Coinbase Inc
ALIBABA HK
Philip Morris
General Motors
PayPal
UniCredit
II-VI
BASF
Kraft Heinz
Alphabet (Google)
Palo Alto Networks
Evraz
Plug Power
Li Auto
Oracle
Roku Inc
UiPath Inc
Upstart Holdings Inc
F5 Networks
Infinera
Inditex
ZIM Integrated Shipping Services Ltd
Deutsche Bank
Hammerson
IBM
JD.com
Barrick Gold
TUI AG (LSE)
Lemonade
MerckCo USA
Infosys
Invesco Mortgage
Comcast
Santander
Accenture
Anheuser-Busch Inbev
Visa
Mastercard
Ozon
T-Mobile
SAP
Wayfair
Beyond Meat
Kuaishou
CarMax
Tesla
Lyft
Medtronic
Adobe
Morgan Stanley
Workday Inc
Blackrock
Vipshop
Meta (Formerly Facebook)
Linde PLC
Micron
Lululemon
Ceconomy
Chipotle
Gilead
Avacta
Naspers
Bristol Myers
Samsung
The Cheesecake Factory
Glencore plc
British American Tobacco
ChargePoint Holdings Inc
Twilio
Intel
Lloyds
CNOOC
Electrolux
Wells Fargo
Sea
PG&E
Fedex
Citigroup
Peloton Interactive Inc.
eBay
Microsoft
JnJ
Bilibili Inc
Trump Media & Technology Group
AIA
Nasdaq
Air France-KLM
Allianz
Lithium Americas Corp
Procter & Gamble
Qualcomm
AMD
New Oriental
MercadoLibre.com
Mondelez
Lumentum Holdings
Two Harbors Investment aration
AstraZeneca
Norwegian Cruise Line
Unilever
GoHealth
PepsiCo
Barclays
PETROCHINA
Goldman Sachs
Eli Lilly
HSBC
Cellnex
Berkshire Hathaway
Jumia Technologies
HDFC Bank
RTX Corp
Bayer
Bank of America
Chevron
ADT
DoorDash
Marriott
Nike
AT&T
GSX Techedu
Robinhood
Telecom Italia
Deliveroo Holdings
TUI
Freeport McMoRan
Toyota
BioNTech
Airbnb Inc
Alibaba
Verizon
Nio
Eni
Ford
Hanesbrands
Volkswagen
UnitedHealth
Shopify
China Life
Snap
Christian Dior
Conoco Phillips
Lufthansa
Tencent
Moderna Inc
Salesforce.com
Broadcom
Diageo
Toro
Cinemark

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down
$-

Value

$-

Commission

$-

Spread

-

Leverage

-

Conversion Fee

$-

Required Margin

$-

Overnight Swaps

$-
Start Trading

Past performance is not a reliable indicator of future results.

All positions on instruments denominated in a currency that is different from your account currency, will be subject to a conversion fee at the position exit as well.

 

Commodities Ignore Falling Inflation

The gold price eased back from the record high above $2,240, oil retreated after closing below the 200-day line yesterday. Silver and copper also eased back a bit after racing higher.  

Inflation is falling – but copper, gold, silver, etc. did not get the memo. Markets think the Fed and ECB are throwing in the towel and inflation will go higher again. As I have said many times, CBs are in a bind: they are going to tacitly and then explicitly accept higher structural inflation. This was evident since the Fed went for AIT (average inflation targeting).

It was evident after that Lagarde speech I keep harping on about — the one last April, which I took to mean that central banks in developed countries would act together to suppress rates as we head into an economic (and maybe real) war that will require ever-higher deficits. It’s about financing promises at home and abroad – domestic bliss and foreign wars, in the words of BofA.  

So now we can expect inflation to run higher – they want this as it’s positive for the debt burden. They also know there is not a lot they can do contain higher inflation due to structural shifts in the global economy — fragmentation of supply chains, deglobalisation, geopolitical strife, trade wars, the festering dislocation caused by the pandemic, etc. It’s not worth going the last mile.  

 

Comments From Fed Speakers

Meanwhile, we are in the midst of a torrent of central bank speakers this week. Fed governor Barr said Q1 inflation was disappointing and did not provide confidence to ease policy. Cleveland Fed president Mester said the forecast of three cuts this year is too many — the market already believes this.  

We hear from the Fed’s Williams, Bostic, Barkin and Waller today. Waller is the one to pay the closest attention to since he is the best cue for changes in Fed policy. FOMC minutes are due tomorrow.  

 

Bank of England

The Bank of England’s Deputy Governor Ben Broadbent laid the groundwork for a summer cut:  

“If things continue to evolve with its forecasts … then it’s possible Bank Rate could be cut sometime over the summer.”  

Governor Bailey is due to speak later.  

Meanwhile, UK grocery inflation has declined to just 2.4% this morning. I repeat what I said yesterday — UK CPI data this week is expected to show a decline to 2.1% from 3.2% in March, paving the way for the Bank of England to cut rates soon.  

Bear in mind, though, that there is one more inflation reading before June after that — so the market will be hesitant to bake in assumptions until then.

 

RBA Minutes Show Rate Hikes Discussed, UK Inflation Due

Watch out for a fair bit of bond issuance today which could see yields move around. Canada’s latest inflation data will be eyed with markets expecting a cut in June as inflation comes down and growth cools.    

Reserve Bank of Australia meeting minutes showed policymakers considered raising rates as the flow of data since the previous meeting had “mostly been stronger than expected”, and that it was “difficult either to rule in or rule out future changes’ to rates”.  

At the last meeting the RBA kept interest rates at a 12-year high of 4.35% and signalled they may not be cutting anytime soon with inflation risks skewed to the upside — though it stopped short of adopting a tightening bias.

Sterling advanced to its best in two months. GBP to USD is currently trading at $1.2717. The UK CPI is due this week.


When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.  

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

Latest news

Broadcom stock split set for mid-July after earnings beat

Thursday, 13 June 2024

Indices

Broadcom stock split set for mid-July after earnings beat

Federal Reserve anticipates only one interest rate cut this year

Thursday, 13 June 2024

Indices

Federal Reserve forecasts only one interest rate cut in 2024

Soft May US inflation reading welcome news for Federal Reserve

Wednesday, 12 June 2024

Indices

May’s softer US inflation data keeps Fed cut hopes alive

Macron calls snap election, riles markets

Wednesday, 12 June 2024

Indices

Markets riled up with Macron gamble, France's left tail risk

Live Chat