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7:03 PM · 16 May 2024

Daily summary: USD gains after hawkish comments from Fed members

  • Wall Street indices trade mixed today - S&P 500 and Nasdaq trade flat, Dow Jones gains 0.1% and small-cap Russell 2000 drops 0.6%
  • Dow Jones was supported by a 6% jump in Walmart shares. Walmart reported better-than-expected fiscal-Q1 results and boosted full-year forecast
  • European stock market indices traded lower today - German DAX dropped 0.8%, UK FTSE 100 moved 0.1% lower, while French CAC40 and Spanish IBEX declined 0.6%
  • Fed Barkin said that CPI inflation is still not where Fed is trying to get
  • Fed Williams said he expects inflation in low 2% range by year's end and around 2% next year
  • Fed Mester said that risks to the inflation side of Fed mandate have increased and that it will take longer to gain confidence inflation is moving towards 2%
  • ECB Kazaks said that condition for a rate cut in June are there and that it would take massive surprise in economic data for ECB not to make a move next month
  • US housing starts increased 5.7% MoM in April to 1360k (exp. 1420k), while building permits dropped 3.0% MoM to 1440k (exp. 1480k)
  • US industrial production was flat in April (0.0% MoM), in spite of an expected 0.1% MoM increase. Capacity utilization ticked lower from 78.5 to 78.4% (exp. 78.4%)
  • EIA reported a 70 billion cubic feet increase in US natural gas storage (exp. 77 bcf)
  • Japan annualized Q1 GDP came in at -2% (exp. -1.5%). On a quarterly basis, GDP dropped 0.5% QoQ (exp. -0.4% QoQ)
  • Australian employment increased by 38.5k in April (exp. 24.4k), while unemployment rate jumped from 3.8 to 4.1% (exp. 3.9%)
  • Major cryptocurrencies trade lower - Bitcoin drops 1.2%, Ethereum trades 2.2% lower and Dogecoin drops over 3%
  • Oil trades little changed while US natural gas prices rally over 3% to a 4-month high
  • Precious metals pull back amid USD strengthening - gold drops 0.2%, silver trades flat, platinum declines 0.6% and palladium plunges 1.2%
  • NZD and USD are the best performing major currencies, while CHF and JPY lag the most
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