Post by Dave on May 2, 2023 0:57:52 GMT -8
Good morning and welcome to Mr. Markets roller coaster rise. Please buckle up. This morning’s pre-market is green at +0.02% at this moment.
Stocks Wobble on Amped Up Policy-Tightening Bets: Markets Wrap
Tuesday, May 2
Pfizer (PFE), Advanced Micro Devices (AMD), Starbucks (SBUX), BP (BP), Illinois Tool Works Inc. (ITW), Eaton Corp. (ETN), Thomson Reuters Corp. (TRI), Uber Technologies (UBER), Southern Copper Corporation (SCCO), Enterprise Products Partners (EPP), Marathon Petroleum Corp. (MPC), Marriott International (MAR), Ecolab Inc. (ECL), Ford Motor Company (F), and Sysco Corporation (SYY) report earnings
Day 1 of FOMC Meeting
Job Openings and Labor Turnover Survey (JOLTS) Report (Mar)
Factory Orders (Mar)
Pfizer (PFE), Advanced Micro Devices (AMD), Starbucks (SBUX), BP (BP), Illinois Tool Works Inc. (ITW), Eaton Corp. (ETN), Thomson Reuters Corp. (TRI), Uber Technologies (UBER), Southern Copper Corporation (SCCO), Enterprise Products Partners (EPP), Marathon Petroleum Corp. (MPC), Marriott International (MAR), Ecolab Inc. (ECL), Ford Motor Company (F), and Sysco Corporation (SYY) report earnings
Day 1 of FOMC Meeting
Job Openings and Labor Turnover Survey (JOLTS) Report (Mar)
Factory Orders (Mar)
Stocks Wobble on Amped Up Policy-Tightening Bets: Markets Wrap
(Bloomberg) -- Global stocks wobbled and bond yields rose on Tuesday after Australia’s unexpected interest-rate increase showed central banks remain in inflation-fighting mode, cementing expectations for further policy-tightening in the US and Europe.
European shares opened flat with HSBC Holdings Plc the standout gainer after a profit beat and a $2 billion share buyback. US equity futures seesawed between losses and gains after Monday’s government-brokered deal for JPMorgan Chase & Co. to acquire the troubled First Republic Bank.
Despite the bank rescue, buoyant first-quarter earnings and relatively encouraging Chinese economic data, the US financial sector turmoil renewed concerns about a deeper slowdown in an economy already under pressure from the most aggressive rate-hike campaign in decades. Starting later on Tuesday, the Federal Reserve’s two-day meeting is expected to raise rates by a quarter point, while the European Central Bank could opt for a bigger half-point hike on Thursday.
Earlier, the Reserve Bank of Australia hiked benchmark rates by 25 basis points to 3.85%, saying inflation remained too high and further tightening may be required. That pushed Australia’s dollar as much as 1.2% higher and lifted rate-sensitive three-year local yields more than 20 basis points.
“The RBA’s hike today is likely to ramp up the market’s hawkish expectations for the Fed this week as RBA is one of the G-10’s least hawkish central banks and has shown the inflation fight is not over,” said David Forrester, strategist at Credit Agricole CIB in Singapore.
While Treasury yields inched lower after a late-Monday surge, European borrowing costs jumped, with German, French and Italian yields up as much as 10 basis points across the curve. Swap traders have upgraded the odds the Fed will raise its policy rate by a quarter point Wednesday, while increasing expectations for peak ECB rates by around 8 basis points to 3.79%.
On currency markets, an index of dollar strength against its main Group-of-10 peers slipped, while the offshore-traded Chinese yuan inched higher as investors looked past a surprise manufacturing contraction and focused on signs of robust spending during the country’s Golden Week holiday.
Payment misses by Chinese developers, however, highlighted pressures in the key sector, knocking an index of real estate companies more than 2%.
Oil prices inched higher after earlier losses driven by concerns over China’s economic outlook and the impact of US banking turmoil. Prices have dropped more than 5% already this year.
European shares opened flat with HSBC Holdings Plc the standout gainer after a profit beat and a $2 billion share buyback. US equity futures seesawed between losses and gains after Monday’s government-brokered deal for JPMorgan Chase & Co. to acquire the troubled First Republic Bank.
Despite the bank rescue, buoyant first-quarter earnings and relatively encouraging Chinese economic data, the US financial sector turmoil renewed concerns about a deeper slowdown in an economy already under pressure from the most aggressive rate-hike campaign in decades. Starting later on Tuesday, the Federal Reserve’s two-day meeting is expected to raise rates by a quarter point, while the European Central Bank could opt for a bigger half-point hike on Thursday.
Earlier, the Reserve Bank of Australia hiked benchmark rates by 25 basis points to 3.85%, saying inflation remained too high and further tightening may be required. That pushed Australia’s dollar as much as 1.2% higher and lifted rate-sensitive three-year local yields more than 20 basis points.
“The RBA’s hike today is likely to ramp up the market’s hawkish expectations for the Fed this week as RBA is one of the G-10’s least hawkish central banks and has shown the inflation fight is not over,” said David Forrester, strategist at Credit Agricole CIB in Singapore.
While Treasury yields inched lower after a late-Monday surge, European borrowing costs jumped, with German, French and Italian yields up as much as 10 basis points across the curve. Swap traders have upgraded the odds the Fed will raise its policy rate by a quarter point Wednesday, while increasing expectations for peak ECB rates by around 8 basis points to 3.79%.
On currency markets, an index of dollar strength against its main Group-of-10 peers slipped, while the offshore-traded Chinese yuan inched higher as investors looked past a surprise manufacturing contraction and focused on signs of robust spending during the country’s Golden Week holiday.
Payment misses by Chinese developers, however, highlighted pressures in the key sector, knocking an index of real estate companies more than 2%.
Oil prices inched higher after earlier losses driven by concerns over China’s economic outlook and the impact of US banking turmoil. Prices have dropped more than 5% already this year.