Your morning market wrap. Wild price action on Wall Street.
Stocks:
Wall Street staged a remarkable rebound after an initial sell-off following another hotter than expected us CPl print.The S&P500 rallied 2.6%, led be energy and financials. Tech also performed strongly and the NASDAQ gained 2.3%.SPI Futures are pointing to a110 point jump for the ASX200 at the open.
Rates/bonds:
US CPl came in higher than expected and 8.2% and core CPl rose to 6.6%-its highest level in 40 years. Yields pushed higher across the curve. The Us 10 year yield increased 6 points to 3.96% and the 10-2 spread fell to 51 basis points. Fed Fund Futures are fully pricing in a 75 point hike from the Fed in October and a peak in rates of 5% next year. Gilt markets also continue to trade in a funky way.The 10 year yield fell 24 points on speculation on budget back flips from the Truss Government.
FX:
The US Dollar fell despite the hot inflation read.The Euro was higher - German CPl printed at expectations but confirmed strong price pressures in the Eurozone.The Pound jumped. The Yen was marginally lower and above 147 as the markets wait for a BOJ response.The AUDIUSD caught that risk-on tailwind to push back to around 63 cents this morning.
Commodities:
Crude rose 2.2%.A weaker Dollar helped there. Bullish sentiment may have also played a part. The move came despite a much bigger than expected 9.9 million barrelbuild in Us Crude lnventories last week. Gold prices fell 0.4%, likely due to the rise in yields,to be trading around $US1665 this morning.
Crypto:
Bitcoin joined in on the risk rally, jumping 1%.
$S&P 500(.SPX)$ $NASDAQ(.IXIC)$ $DJIA(.DJI)$ $Japanese Yen - Dec 2022(JPY2212)$
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