MARKETS USA/Wall Street expected to be slightly up

NEW YORK (Dow Jones) — The stock futures market is predicting narrow premiums for the Wall Street open on Monday. The US stock exchanges are thus still well able to cope with the expectation of aggressive interest rate hikes after the positive labor market report at the end of the week. “Given all the uncertainty that still exists, I’m a little surprised at how strong the stock market is showing. The long-term aftermath of the war will mean higher inflation,” said market strategist Altaf Kassam of State Street Global Advisors.

Jefferies economist Aneta Markowska argues that the US economy is firmly in the middle of the cycle. “Profit margins have only just started to shrink and are still near cycle highs. This does not look like a corporate sector that will embark on a cost-cutting campaign. On the contrary, excess demand, pricing power and low inventories are creating a strong incentive.” for investments and new hires,” analyzes Markowska.

Traders therefore do not necessarily see the ongoing tightening of monetary policy as a problem for the US stock market. Instead, long-term persistent inflation is poison for the economy, they say. The most recent shocking images of probable Russian war crimes in Ukraine dampened the mood to buy a little more, according to retailers. Lifting the sanctions against the aggressor Russia with all the consequences for inflation and trade conditions is out of the question. The extension of the lockdown in Shanghai is also fueling concerns about economic strains.

oil and gold more expensive

Meanwhile, oil prices are picking up slightly. The images and reports of war crimes in Ukraine made new sanctions against Russia more likely. As a result, Russian oil could also disappear from more and more markets and the supply could decrease, it is said.

Interest rate hike fantasies and horror pictures from Ukraine are supporting the dollar, the dollar index climbs by 0.2 percent. The greenback, considered a “safe haven,” fell to its lowest level in nearly a month last week. According to Unicredit, it is likely to rise as hopes of a solution in the peace talks between Russia and Ukraine are fading. “The conflict continues without much progress in negotiations and the dollar is gaining ground across the board,” the analysts note.

A firm dollar cannot harm the price of gold, the price of the precious metal is rising with investors’ need for security because of the development of the Ukraine war. Gold is also supported by rising inflation, as the precious metal is regarded as a protection against inflation.

The yield curve on the US bond market continues to show an inverse trend, ie two-year US government bonds continue to yield higher yields than ten-year government bonds. There was already an inversion here last Friday – this phenomenon is seen as a harbinger of a recession, albeit with a lead time of about a year.

peddle Twitter

Twitter shot up 21.2 percent premarket. Tesla boss Elon Musk has built up a 9.2 percent stake in the short message service. Starbucks give way 2.8 percent. The operator of a coffee house chain has canceled planned share buybacks. This is intended to release funds for investments in new branches and employees.

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US Bonds

Term Yield Bp to VT Yield VT +/-Bp YTD

2 years 2.42 -3.6 2.46 169.4

5 years 2.54 -2.7 2.57 128.2

7 years 2.50 -1.0 2.50 105.5

10 years 2.39 +0.6 2.38 87.9

30 years 2.47 +2.9 2.44 56.5

FOREX last +/- % Mon 8:14 Fri 17:25 % YTD

EUR/USD 1.1007 -0.3% 1.1041 1.1038 -3.2%

EUR/JPY 135.04 -0.2% 135.51 135.53 +3.2%

EUR/CHF 1.0201 -0.2% 1.0228 1.0224 -1.7%

EUR/GBP 0.8392 -0.4% 0.8415 0.8421 -0.1%

USD/JPY 122.70 +0.1% 122.73 122.78 +6.6%

GBP/USD 1.3116 +0.1% 1.3122 1.3107 -3.1%

USD/CNH (Offshore) 6.3748 +0.1% 6.3714 6.3689 +0.3%

Bitcoin

BTC/USD 46,244.69 -1.1% 46,196.57 46,604.00 +0.0%

ROHL last VT-Settl. +/- % +/- USD % YTD

WTI/Nymex 100.78 99.27 +1.5% 1.51 +36.3%

Brent/ICE 105.49 104.75 +1.0% 1.13 –

METALS last day before +/- % +/- USD % YTD

Gold (Spot) 1,931.79 1,925.30 +0.3% +6.49 +5.6%

Silver (Spot) 24.76 24.64 +0.5% +0.13 +6.2%

Platinum (Spot) 993.96 986.95 +0.7% +7.01 +2.4%

Copper futures 4.72 4.69 +0.6% +0.03 +6.0%

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DJG/DJN/flf/cln

(END) Dow Jones Newswires

April 04, 2022 08:46 ET (12:46 GMT)