- European bourses finished session mostly higher
- US indexes rebound thanks to lower yields
- US crude inventories unexpectedly rose
The fall in US bond yields prompted investors to buy stocks again thanks to which all major Wall Street indices jumped more than 1%. On the other hand, it can only be profit taking after the recent declines. Also most European stock indexes bounced back in afternoon trading on Thursday, with Frankfurt's DAX 30 adding 0.6% at 15,902 and markets in Paris, Milan and Madrid gaining between 0.3% and 0.5%, while FTSE finished slightly lower. Russian RTS rebounded over 2% today, even though President Biden still sees a high risk of Russia's invasion of Ukraine.
The ECB minutes did not show anything new. Central bank sees some inflation problems and does not rule out that inflation will remain high, but this is not the base scenario. The bank of course indicates that some normalization is needed (ending the PEPP program as previously agreed), but the APP program will continue. Interest rate increases are not expected this year. Fitch points out that such a move by the ECB could take place in 2024.
Data from the US today did not impress. Weekly jobless claims rose to their highest level since October, above 280,000. Sales of homes on the secondary market also disappointed, although this may not be the result of high prices, but of the persistent shortage of homes which are available on the market.
Precious metals extended their recent rally. Platinum was gaining close to 3%, although after the European session a slight correction began and gold fell below $1,840 level. Nevertheless, the session may end positively, given the decline in bond yields.
US crude oil inventories increased by 0.515 million barrels in the week ending January 14th, the first increase since November and compared to market forecasts of a 0.938 million drop, data from the EIA Petroleum Status Report showed. Meanwhile, gasoline inventories rose by 5.873 million barrels, more than an expected 2.634 million increase. Oil, however, absolutely does not pay attention to these data. After yesterday's slight correction, today prices are rising again. WTI is trading above $86.00, benefiting from lower US yields and a weaker dollar.
The beginning of 2022 is characterized by increased M&A activity in the gaming sector. Last week, Take-Two Interactive announced the acquisition of Zynga, and now Microsoft announced its plans to acquire Activision-Blizzard, which is the largest M&A deal in gaming history! Stock prices of other game producers moved higher as expectations for more mergers and acquisitions in the gaming sector soared. More details regarding this topic can be found in today's analysis!
Bitcoin fell below the psychological barrier of USD 42,000, following information from the Russian central bank, which announced that Russia should ban the mining and use of this cryptocurrency, and the industry itself has the hallmarks of a financial pyramid scheme. It's worth noting, however, that the market ignored this announcement and Bitcoin's price rose to $ 43,500.
Peloton (PTON.US) stock fell 15% in reaction to an internal document saying that the company would temporarily halt production to better balance supply with demand. Stock price broke below the major support around $34.68 last week, which is marked with lower limit of the 1:1 structure and if current sentiment prevails downward move may accelerate toward all-time low at $17.50. Source: xStation5
