Daily summary: Global stock markets fall on growth worries

6:57 PM June 23, 2022
  • European equities fell for a second session on Thursday, with the CAC40 and the DAX 40 losing 0.56% and 1.76% respectively, while FTSSE 100 finished 0.97% lower;
  • Flash manufacturing and services PMI readings fell more than expected in June across the Eurozone, with Germany’s factory activity gauge at a 23-month low of 52 points;

  • British Airways Staff became the latest to to vote to go out on strike, following in the footsteps of easyJet staff in Spain and Ryanair earlier this month;

  • Mixed moods prevail on Wall Street. The Dow Jones fell 0.50%, while the S&P 500 dropped over 0.2%, while Nasdaq rose 0.25%.

  •  Fed policymakers Bowman and Waller seem to be in favor of another 75-basis point hike at the next policy meeting at July; 

  • Chair Powell during his second day of testimony said that he would be reluctant to cut rates. Fed expects inflation to move down over the course of the next 2 years to its goal;

  • US PMIs showed the growth in private activity was the second-weakest since July 2020, with slower service sector output expansion and the first contraction in manufacturing production in two years;

  • JPY and CHF are the best performing major currencies while AUD and EUR lag the most;  

  • Gold erased gains from the previous session and is heading towards major support at $1828 despite lower treasury yields. Silver fell over 1.0% and is heading towards $21.00 level;

  • WTI oil fell to below $105 per barrel on Thursday, extending a 3% decline in the previous session and remaining at 5-week lows, while Brent dropped to $110;

  • NATGAS price fell over 9.0% to the lowest level since beginning of April, pressured by rising US inventories; 

  • Cryptocurrencies were relatively calm on Thursday. Bitcoin managed to defend $20.000 level, while Ethereum is climbing towards resistance at $1100;

It was another tough session for the market bulls. Weak PMI readings from the US and Europe only deepened fears that uncontrolled inflation was beginning to hurt corporate earnings and economic growth. During the second day of the hearing before the congress, Jerome Powell said nothing that would help buyers. It seems that in the near future investors' attention may focus again on labor market data, as many experts point out that the recession in the US will not take place due to the strong labor market.

OIL.WTI trades sideways today. Buyers struggle to break above the downward trendline, while support at $103.55 halts bearish attempts. Source: xStation5

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