London, Tuesday, 12 April 2022
US Markets Summary
After investors digested hot inflation data ahead of the start of the earnings season, the Dow reversed earlier gains to close 88 points lower at a four-week low of 34,220 on Tuesday, with the S&P 500 down 0.4 percent and the Nasdaq ending 0.3 percent lower, mostly weighed down by tech and banking stocks.
In March, the headline annual inflation rate increased to 8.5 percent, the highest since December 1981 and slightly above market expectations, while core inflation came in at 6.5 percent, just below expectations.
Later in the session, Fed Governor Janet Yellen stated that the central bank was still committed to significantly shrinking its balance sheet and raising interest rates numerous times.
Investors are now waiting for bank and airline results.
JP Morgan is down 1.1 percent ahead of its earnings report, with EPS expected to drop to $2.69 from $4.59 last year. Energy stocks, on the other hand, were up, momentarily reaching 2015 highs.
European Markets Summary
On Tuesday, European shares fell for a second day, with the STOXX 600 and the DAX 30 losing 0.3 percent and 0.5 percent, respectively, amid concerns that increasing inflation and higher interest rates may pull the bloc's economy into recession.
In March, Germany's inflation rate was confirmed at 7.3 percent, the highest since 1981, while wholesale inflation also reached a new high.
Investors are now looking forward to the European Central Bank meeting on Thursday, which might be another stressful moment for policymakers grappling with record inflation and the economic impact of the Ukraine conflict.
Meanwhile, the latest US inflation data, which showed core CPI fell short of expectations, helped to soothe some worries on Wall Street. In terms of individual stock price movement, Deutsche Bank shares fell almost 9%, while Commerzbank shares fell 8.5 percent.
U.S. Stock Market Indexes as at 4:04 p.m. ET
S&P 500: -15.18 (-0.34%) to 4,397.35
Nasdaq: -40.38 (-0.30%) to 13,371.57
Dow Jones: -88.19 (-0.26%) to 34,219.89
European Stock Market Indexes
STOXX Europe 600: - 1.6 points, or 0.35%, to 456 points
FTSE 100 in London: the worst performer of the day, - 41.7 points, or 0.55%, to finish at 7,576
DAX 30 in Germany: -67.8 points, or 0.48%, to end the day at 14,124
CAC 40 in France: -18.4 points, or 0.28%, to 6,537
FTSE MIB 30 in Italy: -82.2 points, or 0.33%, to close at 24,667
IBEX 35 in Spain: -7 points or 0.08%, to 8,578
Ten-year U.S. Treasury note: -5.5 bps to yield 2.7250%
U.S. Dollar Index (DXY): 100.32, + 0.39 or +0.39% as of Apr 12, 2022 at 4:08 p.m. EDT
VIX volatility index: +0.15 (0.62%) at 24.52
Crude Oil WTI (NYM $/bbl) Front Month: $100.74, + 6.45 or +6.84%
Brent Crude Oil Continuous Contract: $104.74, + 0.10 or+ 0.10%
Gold: +13.20 or +0.68% at $ 1,965.72 an ounce as on April, 12 2022 at 16:22 NY Time
Silver: +0.32 or +1.29% at $ 25.41 ounce an ounce as on April, 12 2022 at 16:22 NY Time
Bitcoin: −84.20 (0.21%) at $ 39,451.10 as on 12 Apr, 20:19 UTC
Ethereum: +9.11 (0.31%) at $ 2,988.03 as on 12 Apr, 20:19 UTC
(Written and edited by: The Decision Maker)