Daily summary: US stocks fall broadly as volatility grips markets

• Mixed moods in Europe
• US CPI inflation highest since 1982
• Increased volatility on Wall Street 
• 10-year Treasury yield above 2.0%

European indices finished today’s session in mixed moods, with DAX up 0.2% while CAC fell 0.41% as investors weighed another set of quarterly results against mounting inflation concerns. The European Commission revised its 2022 inflation forecast to 3.5% from 2.2% after which government bond yields jumped to multi-year highs. This  in turn put downward pressure on the technology sector. On the other hand, travel and leisure equities along with chemicals shares were among the biggest gainers on the European indexes. On the corporate front, strong earnings results from AstaZeneca, Societe Generale, Zurich Insurance and Siemens offset downbeat updates from Credit Suisse and Unilever. Shares of Germany-based food delivery firm Delivery Hero plummeted over 30% after the company released disappointing earnings outlook.

Major Wall Street indices swing wildly during today's session as US inflation reading came in above expectations at the highest in four decades. Indexes managed to erase most of the early losses after the start of the cash session, however later comments from FED Bullard which favors a 100 basis point increase by July 1 renewed pressure on stocks. On the earnings front, Walt Disney added nearly 6% after reporting solid quarterly results and subscriber growth. Also Uber Coca-Cola posted better-than-expected quarterly figures while Twitter performance disappointed  investors.

Commodities also swing between gains and losses amid weaker dollar and rising yields. The US 10-year Treasury jumped above 2.00% while the yield on the 2-year Treasury bond, the most sensitive duration to interest rates, increased 10 basis points to 1.45% after CPI release. Gold is flat around $1833, while silver rose over 1% and is testing $23.50 level. WTI price at one point rose over 2% during today’s session, however buyers failed to uphold momentum and most of the gains have been erased. Nevertheless WTI is still trading above $90.00 per barrel, while Brent is trading around $91.60. Indecisiveness can be spotted also on the cryptocurrencies markets. Early in the session Bitcoin price jumped above $45 000 following news that Russia decided to regulate cryptocurrencies instead of ban them and BlackRock reportedly plans to offer crypto trading. However moods worsened later and Bitcoin returned below the aforementioned level while Ethereum fell below $3200.

US stock indices came under selling pressure following Bullard's hawkish comments, with the US500 likely to form a local double-top formation and bearish engulfing pattern on D1 interval. Source: xStation5