Daily summary: Markets await tomorrow's CPI inflation readings

9:05 pm 9 August 2022

  • Stock indices in Europe ended today's session lower, with the DAX losing 1.12% and the CAC40 losing 0.4%.

  • In the currency market, the euro and the Swiss franc are doing particularly well today. The Australian dollar and the Canadian dollar are currently doing worst.  

  • Market sentiment today was dominated by expectations for tomorrow's US inflation reading, which will be an important component of the Fed's next decision on a September interest rate hike. 

  • Inflation in Hungary rose to its highest levels in decades at 13.7% y/y.

  • The pound was one of the weakest currencies in today's session, after news emerged from British authorities that the worst-case scenario calls for up to 4 days of blackout in January in the face of power and gas outages.

  • Oil prices behaved mixed today. At first, the information about the cut in exports from Russia to the countries of Central and Southern Europe led to a recovery and a rise in prices above $90.  

  • Gold reached $1,800 today, despite a strengthening dollar.

  • The crypto market was dominated by declines in most digital assets today.  Bitcoin slices more than 3.5% and oscillates just below the $23,000 level, while Ethereum loses 4.6% and breaks out below $1,700.

  • US indices recorded declines, with the NASDAQ (-1.2%) and Russell 2000 (-1.9%) in particular under bearish pressure. Nevertheless, at the moment the major indexes have erased some of their earlier losses. 

  • Weak sentiment persists in the semiconductor sector.  Shares of Nvidia, Micron or AMD lost more than 5%. Micron and Nvidia warned in their announcements of possible poor results in the near term, leading to a massive pullback on Wall Street. 

  • Berkshire Hathaway (BRKB.US) increased its stake in Occidental Petroleum (OXY.US).

  • Novavax (NVAX.US) lowered its earnings forecast and reported a quarterly report below analysts' expectations.

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