Wall Street, which was finally finished after a two-day purge last night, is heading towards scattered for the time being this Friday. The S & P 500 ranged from 0.21% to 4,490 points and the Dow Jones ranged from 0.34% to 34,699 points. Nasdaq still stumbles from 0.91% to 4,491 points. The barrel of WTI crude is stable at $ 96. One ounce of gold was up 0.4% to $ 1,945. The dollar index rose 0.2% against a basket of currencies. Bitcoin remains at $ 43,000.
The focus is many times on the policies of the central bank of the United States and its impact on the market. The March FOMC minutes show that the Fed is more motivated to raise rates in increments of 50 basis points amid inflationary concerns. Balance sheet reductions will probably be included in the next FOMC menu in May …
The ECB minutes, released Thursday, also showed the urgency to address concerns about inflation expectations. Some are calling for a rate hike in September, while others are calling for a rate hike in December.
Bond markets remain volatile as more and more parts of the Treasury curve are reversing, causing controversy over recessionary signals. 10-year bonds are 2.679% today and 30-year bonds are 2.727%.
Some are concerned that the conflict in Ukraine could put the eurozone in recession later this year. The US economy is also expected to slow rapidly next year.
This conflict between Russia and Ukraine is now concentrated in eastern Ukraine as Russian troops are looking to the East Donbus region. NATO has agreed to supply Ukraine with heavy weapons and more sophisticated systems. On Thursday, the EU agreed to ban Russia’s coal imports. Discussions on the possibility of an oil and gas embargo may continue … European Commission President Ursula von der Leyen and EU Foreign Minister Josep Borrell arrive in Kyb today, and Ukrainian Wolody Mill I met President Zelensky. Von der Leyen said he would specifically talk about his trip to Europe in Ukraine.
Bank of America has shown that the macroeconomic environment is deteriorating rapidly and that monetary tightening could put the US economy in recession. BofA strategists point out that the inflation shock is getting worse as interest rate shocks begin and the “recession shock” arrives. This is the view of Michael Hartnett, Chief Investment Officer of the U.S. Bank, where cash, volatility, commodities and cryptocurrencies could outpace bonds and stocks … Federal government cuts balance sheet from next month I expect it to double. The pace before the quantitative tightening. Traders also expect the Fed to raise rates by 0.5 points on May 4.
Jan Hatzius, chief economist at Goldman Sachs, a New York investment bank quoted by Bloomberg, states that the United States has shown the largest “overheating” of the job market since the 1950s. Hatzius said federal funds rates could peak above 4% next year if financial conditions aren’t tight enough and the labor market remains “hot.” Therefore, the Fed may have to raise interest rates significantly more than currently expected to calm this overheating of the US economy. “If the economy doesn’t slow down, especially if employment growth doesn’t slow down significantly, we can expect a significant increase of over 4%,” said an economist. According to Bloomberg.
According to today’s report, US wholesale inventories in February 2022 increased 2.5% from the previous month, compared to + 1.8% in the FactSet consensus.
Election polls in France elsewhere in the world show that the gap between Emmanuel Macron and Marine Le Pen is now less than 5 points prior to the first round on Sunday.
On the other hand, although the outbreak of Covid in China is worsening, the impact on the market is limited due to the increased potential for support measures.
KKR (+ 3%) is considering a June IPO for Japanese semiconductor manufacturing equipment designer Kuninishi, three sources familiar with the matter told Reuters.
Tesla (-3%) intends to design a futuristic autonomous taxi without providing a timetable, Elon Musk said. “Large, fully autonomous. A dedicated robotaxi will be installed,” Musk said at the grand opening of the factory in Austin, Texas, where the new headquarters are located. Tesla’s CEO has already specified several times his intention to launch a self-driving car and then a robot taxi.
Musk also announced yesterday Thursday that production of Cybertruck’s electric pickups will begin next year.
“Great work team Tesla Texas !! We built and delivered the first Giga Texas production car and held a killer opening party,” Musk summarized on Twitter.
According to bankers, Blackstone (+ 1%) and Atlantier’s largest shareholder, Edizione, will need to open a bid for the Italian Infrastructure Group for € 24 per share before and after Easter.
Spirit Airlines (Stable) will begin negotiations with JetBlue Airlines on a $ 3.6 billion takeover offer that is superior to the Frontier Group.
Biogen (stable). The US government has announced that the Medicare program will limit the scope of Aducanumab, a treatment for Alzheimer’s disease laboratories.
Robin Hood is down 7% on Wall Street, but Goldman Sachs has downgraded the value of its online trading platform from “neutral” to “sale” because of weak customer engagement.
HP (-2%), boosted by the rise in the capital of Warren Buffett’s Berkshire Hathaway on Wall Street yesterday, was downgraded from UBS, which had just moved from purchase to “neutral” on an essential basis. As a result, I lost some position today. standard.