London, Monday, 13 June 2022
US Markets Summary
The Dow Jones lost 980 points, the S&P 500 fell nearly 4%, and the Nasdaq fell 4.8 percent as investors accepted that the economy would take a hit as increasing inflation forces the Fed to hike rates higher and faster. On Wednesday, the Fed was expected to announce its second straight half-point rate hike, but a WSJ story suggested the central bank would surprise markets with a larger-than-expected 75 basis point raise.
Treasury yields increased across the curve, with the benchmark 10-year yield reaching 3.34 percent, the highest level since 2011.
Cryptocurrencies also fell when digital currency lender Celsius Network stated in a statement on Sunday that it was halting all withdrawals, swaps, and transfers between accounts on its platform "because to extraordinary market conditions."
Following the revelation, bitcoin prices (BTC-USD) plummeted more than 17% to around $23,000 at session lows, the lowest since December 2020, while Ethereum prices (ETH-USD) fell below $1,200. Coinbase (COIN) and MicroStrategy Incorporated (MSTR) are two crypto-related equities that have seen fresh selling pressure.
Main moves at closing of trading (4:05 p.m. ET) on Wednesday
· S&P 500 (^GSPC): -151.23 (-3.88%) to 3,749.63
· Dow (^DJI): -876.05 (-2.79%) to 30,516.74
· Nasdaq (^IXIC): -530.80 (-4.68%) to 10,809.23
· Crude (CL=F): -$0.08 (-0.07%) to $120.59 a barrel
· Gold (GC=F): -$50.80 (-2.71%) to $1,824.70 per ounce
· 10-year Treasury (^TNX): +21 bps to yield 3.3660%
(Source: Yahoo!Finance)European Markets Summary
Travel and leisure sectors, which are particularly sensitive to the global economic outlook, drove down European equities markets on Monday, with both Germany's DAX and the benchmark STOXX 600 down more than 2%. Fears of a recession dominated market mood, as central banks appeared poised to tighten monetary policy more quickly to confront sky-high inflation.
Government debt rose, with Germany's 10-year yield reaching its highest level since 2014 and the 10-year Treasury note in the United States reaching an 11-year high.
In addition, the US yield curve reversed for the first time since April, a sign of impending economic downturn. In terms of economic indicators, the British economy unexpectedly contracted in April for the second month in a row.
(Source: Trading Economics and Yahoo!Finance // Edited by: The Decision Maker – Finance editors)