Spreadex Market Update
Traders Still Turning Over Friday’s Jobs Data – US CPI Due Tomorrow
After a quiet start to the week yesterday, there is little hope for any strong action today given the rather empty data schedule ahead of tomorrow’s headline US CPI release. Traders continue to digest the figures from Friday’s US labour data which saw the NFP coming in above forecasts (253k vs 181k expected) along with the unemployment rate falling back and wages seen rising. If anything, the figures pushback against US recession concerns and suggest that the Fed would still have a case for further tightening in June. With that in mind, tomorrow’s US CPI release will likely be a key catalyst for markets over the month with any unexpected strength likely to send stocks sinking lower as USD climbs.
Key Factors for Today
- Quiet markets ahead of tomorrow’s US CPI release
- Risks of further Fed hike in June seen following Friday’s NFP
- JPY stronger on safe-haven demand
Market Movers
- S&P holding around $4146 following rally
- Bitcoin falls back to $27575
- EURUSD back under $1.10
- Gold holding at $2023
Econ Calendar
- AUD Annual Budget Release (10.30am)
- USD NFIB Small Business Index (11am)
- Fed’s Jefferson & Williams Speak (1.30pm & 5.05pm)
Earnings
- Airbnb
- Occidental Petroleum
- Jackson Financial
Markets Waiting For US CPI Tomorrow
US earnings season continues today with Airbnb, Occidental Petroleum and Jackson Financial among the big names reporting. Yesterday, Paypal shares were seen rising as the company posted better-than-forecast earnings and revenues for Q1. Palantir shares were higher also, now up around 7% off the month’s lows as it too posted better-than-forecast results.
Looking at the equities indices space, most indexes are holding near highs following a strong rally across the board on Friday. Indices were seen treading water yesterday and most are seeing a quiet open today suggesting that there is plenty of uncertainty in the market ahead of tomorrow’s US CPI release. Confirmation of a further fall in inflation should see equities gaining ground. However, if inflation is seen holding around current levels or coming in above forecasts, this might see equities sharply lower as expectations swing back in favour of expecting a further Fed hike next month.
Oil prices saw some decent follow through yesterday with crude futures rallying again, extending the moves from last week. The market is now up around 15% off the YTD lows printed last week. Any further pushback against US recession fears should help support crude near-term.
In FX, JPY has been the strongest performer over the European open. A muted risk backdrop on Tuesday is fuelling firm safe-haven support for the Yen. EUR has been weaker again today. ECB chief economist Phillip Lane warned this week that there is still a lot of momentum in eurozone inflation. However, Lane noted that inflation is falling back and over the back-end of the year is expected to fall more sharply as a result of ECB monetary and the passing of underlying CPI shocks.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
