Traders Market Weekly: Inflation and Bank Run Charades

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    France’s March government budget deficit EUR54.70 bln (last deficit of EUR50.30 bln)

    French Finance Minister Le Maire said that the French economy remains resilient despite ongoing protest.


    Unicredit and BNP Paribas reported better than expected quarterly results while Lufthansa affirmed its outlook for the year.
    Automaker Stellantis reported 14% growth in Q1 revenue.


    MBA Mortgage Applications Index reflected a 1.2% decline with purchase applications falling 2.0% while refinance applications increased 1.0%.

    Most Treasury yields are moving lower.

    The 2-yr note yield is down two basis points to 3.97% and the 10-yr note yield is down three basis points to 3.40%.


    The ADP Employment Change showed an increase of 296,000 in April (consensus 142,000) following a revised increase of 142,000 in March (from 145,000).

    The final IHS Markit Services PMI reading for April fell to 53.6 from 53.7.

    The ISM Non-Manufacturing Index rose to 51.9% in April (consensus 51.9%) from 51.2% in the prior reading.


    Regional bank stocks are behaving better today, helping to calm things down.

    PacWest (PACW 7.12, +0.55, +8.4%) and Western Alliance (WAL 31.95, +1.02, +3.3%) were a source of angst yesterday, yet they sport outsized gains today. The SPDR Regional Bank ETF (KRE) is up 2.1%.


    U.S. Treasuries trade on their highs after adding to their initial gains.

    2-yr: -2 bps to 3.95%
    3-yr: -4 bps to 3.65%
    5-yr: -6 bps to 3.41%
    10-yr: -5 bps to 3.39%
    30-yr: -5 bps to 3.69%


    FOMC = 25BPS increase to 5.25^ fed rate … stocks are relatively flat so far
    as every word & punctuation mark is analyzed by WALL STREET analysts
    Bad for MAIN STREET but good for BANKSTERS & K-street in days ahead
    Meanwhile, they are trying to READ the FED’s mind on what they will do in future
    So far it seems to be a HOLD on future increases for a while


    Dow 33,414.24 -270.29 -0.80%
    S&P 500 4,090.75 -28.83 -0.70%
    Nasdaq 12,025.33 -55.18 -0.46%
    VIX 18.34 0.56 3.15%
    Gold 2,039.50 16.20 0.80%
    Oil 68.31 -3.35 -4.67%



    May 4th is also designated as NATIONAL DAY of PRAYER


    Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note while markets in Japan were closed for a holiday.

    –Equity Markets—

    Japan’s Nikkei: CLOSED
    Hong Kong’s Hang Seng: +1.3%
    China’s Shanghai Composite: +0.8%
    India’s Sensex: +0.9%
    South Korea’s Kospi: UNCH
    Australia’s ASX All Ordinaries: UNCH


    Australia’s March trade surplus AUD15.27 bln (expected surplus of AUD12.65 bln; last surplus of AUD14.15 bln). March Imports 2.0% m/m (last -10.0%) and Exports 4.0% m/m (last -2.7%)

    New Zealand’s March Building Consents 7.0% m/m (expected -0.3%; last -9.4%)


    China’s Caixin Manufacturing PMI returned into contraction in the April reading.

    The International Monetary Fund released a report forecasting a slowdown in China’s productivity and investment over the medium-term, but the growth forecast for 2023 was affirmed at 5.2%.

    China’s April Caixin Manufacturing PMI 49.5 (expected 50.3; last 50.0)


    Samsung is at a risk of facing its first labor strike after failed wage negotiations.

    Hong Kong Monetary Authority followed the FOMC rate hike with a 25-bps increase to 5.50%.

    Hong Kong’s April Manufacturing PMI 52.4 (expected 53.7; last 53.5)


    Major European indices trade in the red ahead of the European Central Bank’s expected rate hike announcement at 8:15 ET.

    —Equity Markets—

    STOXX Europe 600: -0.6%
    Germany’s DAX: -0.5%
    U.K.’s FTSE 100: -0.7%
    France’s CAC 40: -0.9%
    Italy’s FTSE MIB: -0.7%
    Spain’s IBEX 35: -0.6%

Viewing 15 posts - 46 through 60 (of 90 total)
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