BREAKING: US500 tests 4,000 area after Michigan data

3:06 PM 13 May 2022

Preliminary data from University of Michigan for April was the sole noteworthy release from the United States scheduled for today. Report was released at 3:00 pm BST and showed a big miss in both Current Conditions and Expectations subindices. As a result, headline Consumer Sentiment index missed expectations by a huge margin, coming in at 59.1. Looking for positives, one can say that 1-year inflation expectations failed to match market expectations and remained unchanged at 5.4%.

University of Michigan data for April

  • Consumer Sentiment (headline): 59.1 vs 63.9 expected

  • Current Conditions subindex: 63.6 vs 69.3 expected

  • Expectations subindex: 56.3 vs 61.5 expected

  • 1-year inflation expectations: 5.4% vs 5.5% expected

Market reaction to the release was minor. The US dollar ticked lower in a knee-jerk move but it amounted to just a few pips on major currencies pairs. A lower-than-expected inflation expectations seem to have provided more support to equities. S&P 500 broke back above the 4,000 pts handle following the release.

S&P 500 jumped above 4,000 pts in a knee-jerk move following release of UoM data for April. A miss in inflation expectations seems to be playing a major role.Source: xStation5

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits