Daily Digest: Tuesday 14th May
USA
US equities took a turn to the upside through Tuesday as traders await Wednesday’s US CPI data prints. Analyst estimates for CPI on a YoY basis sit at 3.4% some 1.4 percentage points above the Fed’s target rate, while MoM expectations for CPI indicate no change from March’s 0.4% figure. During an address in the Netherlands, Fed Chair Powell’s outlook on inflation remained largely unchanged as he reinforced the higher for longer rate narrative as inflationary pressures persist in the US. The Nasdaq 100 ($NDX) led session gains rising 124.16 points (0.68%) to 18,322.77, followed by the S&P 500 ($SPX) which rose 25.26 points (0.48%) to 5,246.68, and the Dow ($INDU) which rose 126.6 points (0.32%) to 39,558.11.
The so called ‘Meme stocks’ of 2021 GameStop ($GME) and AMC ($AMC) topped the headlines for a second session running after the return of the widely influential day-trader ‘The Roaring Kitty’ to Elon Musk’s social media platform ‘X’ (formerly Twitter). The user is largely regarded as the leader of retail involvement in several short squeeze events that occurred in January of 2021 targeting the short positions of several notable hedge funds including Melvin Capital. Since ‘Roaring Kitty’ posted on the ‘X’ platform, entertainment retailer GameStop’s shares have risen >203% to $48.75, whilst Cinema chain AMC’s shares have risen 117% to $6.85. Due to excessive volatility through the session trading was halted some 34 times, which as in 2021 drew scepticism from the retail crowd.
Europe
The UK’s FTSE 100 (FTSE) edged higher, erasing yesterday’s losses as prices rose 13.14 points (0.16%) to 8,428.13. European indexes followed a similar trend as the STOXX 600 (€SXXP) rose 0.79 points (0.15%) to 521.65 breaking new highs while the French CAC (€FCHI) rose 16.52 points (0.20%) to 8,225.80. The German DAX (€GDAXI) was a slight outlier as prices fell 25.8 points (0.14%) to 18,716.42.
Rest of the World
The Nikkei 225 (¥N225) took a turn to the upside as the index rose 176.60 points (0.46%) to 38,356.06. Today’s technical support sat somewhat higher than Monday as trading moved higher from 38,034 which was tested midway through the session. The session high was marginally above 38,477, though prices were once again rejected.
The Shanghai Stock Exchange Composite Index (¥SSE) extended Monday’s declines, falling a further 2.25 points (0.071%) to 3,145.77. The Indian Nifty 50 (₹NSEI) saw a continuation of a trend to the upside as prices rose 113.8 points to 22,217.85.
Commodities
WTI crude erased yesterday’s gains falling 1.17% to $78.32 per barrel as of 21:00 GMT. As of the same time, Gold prices had risen 0.76% to $2,361.50 per ounce.
Sources:
https://uk.finance.yahoo.com/world-indices/
https://uk.finance.yahoo.com/commodities
https://www.londonstockexchange.com/indices/ftse-100
https://www.binance.com/en-GB/price/bitcoin
https://www.binance.com/en-GB/price/ethereum
https://qontigo.com/index/sxxp/
Stock Market Activity Today & Latest Stock Market Trends | Nasdaq
https://coinmarketcap.com/charts/#market-cap
https://www.forexfactory.com
Definitions:
YoY - Year on Year, or, Year over Year
MoM - Month on Month, or, Month over Month
QoQ - Quarter on Quarter, or, Quarter over Quarter
ECB - European Central Bank
BOJ - Bank of Japan
Fed - Federal Reserve
BOE - Bank of England
SNB - Swiss National Bank
DOJ - Department of Justice