The most important events of the trading day
Tops & flops on the stock exchanges
Shares, indices & commodities of the day
Indices on Wall Street started today’s trading higher as the lower-than-expected US Consumer Price Index (CPI) for April raised hopes that the Fed will not hike further rates.
US CPI inflation slowed to 4.9% from 5.0% (exp. 4.9%) in April, while core inflation eased from 5.6% to 5.5% (exp. 5.5%).
The market opportunities for a rate hike by FOMC in June fell to 0% after April CPI data.
Wall Street gains were quickly erased, however, with major US indices now trading 0.3-0.8% lower. Nasdaq bucks the trend, gaining 0.2%.
The European stock market indices ended today’s trading slightly weaker. The German DAX fell 0.37%, the British FTSE 100 by 0.29% and the French CAC40 by 0.49%.
CNBC reported that the US Department of Justice is investigating short selling of regional bank stocks during the recent turmoil in the sector.
ECB President Lagarde said the central bank still had work to do.
ECB member Nagel said there was still work to be done on core inflation and that the ECB could have made a bigger rate hike last week.
ECB member Centeno said he expects policy to remain tight for some time and that rate cuts could start sometime in 2024.
Bloomberg reports that some ECB members believe a rate hike in September is necessary.
SNB President Jordan said the Swiss monetary policy not yet restrictive enough and inflation remains above the price stability zone.
The official US report showed an unexpected increase in oil inventories by 2.95 million barrels (expected -1.6 million barrels). Distillates inventories fell 4.17 million barrels (exp. -0.8 mb), while gasoline inventories fell 3.17 million barrels (exp. +1.2 mb).
The final German consumer price index for April came in at 7.2% yoy, in line with the flash news.
Major cryptocurrencies were down 0.9% today Bitcoindown 1% Ethereum and a minus of 0.9% Ripple traded.
NZD and JPY are the best performing currencies while CAD and AUD fall the most.
GOLD rose following the release of US CPI data but quickly reversed those gains later (orange circle). However, the downtrend has been halted and we are now watching the buyers attempt to push the price of the precious metal back above the $2,032 price zone. Source: xStation5 by XTB
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