- European market sentiment was mostly weak today. The DAX and CAC40 lost more than 0.9%, the exception was the UK's FTSE, which posted a nearly 0.5% gain. Nearly 3% cheapened the shares of French conglomerate LVMH
- Sentiment on Wall Street, ahead of scheduled Alphabet and Microsoft earnings releases after the session, remains weak. The Nasdaq100 loses almost 0.9%, the DJIA slides more than 1.1%, and the S&P 500 records a 0.85% retreat. However, some of the declines were reduced in the second part of the session
- Meta is losing 12% today, although at the opening the decline was 15%. Meta reported good financial results for Q1 yesterday, while it presented weak expectations for future quarters with high AI-related expenses.Interestingly, during today's session, Tesla and Apple shares, which have been heavily oversold until recently, are clearly doing better in the Big Tech segment; shares of both companies are gaining.
- Nvidia improves some sentiments among AI stocks, with a 4% gain. Also, Arista Networks gains more than 4% amid higher AI investments from its main corporate client, Meta
- U.S. GDP grows 1.6% at an annualized rate, against expectations of 2.5%. The decline is related to lower private consumption and weaker international trade.
- However, the GDP report shows clear inflationary pressures. The GDP deflator rises to 3.1% from 1.7%, while Core PCE rises as high as 3.7% with the previous level of 2%
- The inflationary nature of the GDP report has led to a drop in the valuation of interest rate cuts in the US. At this point, it is pricing in only a 75% probability for a cut in September
- EURUSD dived below the 1.0700 level after the GDP report, but is now trading at 1.0730.
- Gold gained more than 1% today, rebounding from $2313 to nearly $2350 per ounce. Later, the gains were reduced, which may be related to rising yields in the US.
- Oil is recording a flat session today, although it managed to recover some of its losses following the intensification of Israeli military operations in Gaza (Rafah)
- Change in U.S. home purchase contracts signed (March) indicated a 3.4% increase m/m vs. 0.4% forecast and 1.6% previously. The index indicated 78.2 versus 75.6 in February.
- The Kansas City Fed's regional index performed weaker than forecasts and indicated -8 vs. -5 forecasts and -7 previously
- The change in US gas inventories indicated 92 billion cubic feet (expected: 87 bcf; previous: 50 bcf). The inventory level for this time of year is the highest in at least 5 years.
- Janet Yellen indicated that the Fed needs to see more evidence signaling lower inflation, and the Federal Reserve's priority now should be to lower the perceived cost of living for Americans. She also stressed that today's GDP reading is not the final one, we will see what revisions will show
- Pfizer and Biontech shares are losing ground after GlaxoSmithKline sent a lawsuit to federal court accusing the two companies of infringing on patent rights to mRNA vaccine technology used during the Covid-19 pandemic
- Wheat futures prices rise another 1.5% today to $621 per bushel. The market is waiting for tomorrow's Commitment of Traders report from the CFTC, which will update the repositioning of large commodity speculators
- According to the latest reports from the technology sector, competition with AI chips from Nvidia will be taken up by Chinese tech giant Huawei
- Bitcoin is traded slightly lower at $64,500 level. Crypto industry sources say that Ethereum spot ETF will be finally denied by the SEC, in June this year
OIL (H1)
OIL erased gains from beginning of April but on the volume side we can still see higher buyers' activity amid $86-88 per barrel zone.
Source: xStation5
