- The Fed minutes do not seem to change the picture of monetary policy. On the one hand, it is slightly hawkish: the possibility of selling MBS and leaving rates above neutral. On the other hand, the Fed is already aware of possible problems with liquidity on the bond market, and it sees signs of slowing price pressure resulting from problems with sales. For September the market sees only 30% chance of 50bp hike.
- European indices ended today's trading higher, attempting to rebound from a wave of selling after yesterday's session. The biggest loser was the Polish W20 (-0.8%) and the winner was the Austrian AUT20 (+1.83%)
- Wall Street maintains gains after the release of the FOMC minutes report. US100 is up 0.86%, US500 is up 0.31%, and US2000 is up 1.12%.
- Nordstrom (JWN.US) positively surprised investors by releasing higher than expected Q1 earnings. The more than 13% share price increase was further supported by elevated guidance for the full year 2022. It is worth remembering that companies from the retail sector have recently been under the burden of rampant inflation, which has had a strong impact on companies such as Walmart (WMT.US) and Target (TGT.US)
- Nvidia Company (NVDA.US) releases its Q1 financial results just after the close of trading on Wall Street
- USD and GBP are the best performing major currencies, while AUD and EUR remain the weakest
- Klaas Knot of the ECB did not rule out a 50bp hike
- US durable goods orders data pointed to another economic slowdown, triggering a drop in expectations for a big US rate hike; US crude oil and gasoline inventories fell less than expected. Distillate inventories surprised positively, beating market expectations
US500 index chart, interval H4. The benchmark 500 largest US companies are on the rise and break out above the previously mentioned barrier of the uptrend limit (red, dashed line). Source: xStation 5
