Tuesday market minute
- Global stocks climb to new all-time highs, while European stocks hit their longest winning streak in two years as improved growth prospects, dovish central banks and low volatility propel markets.
- The Bank of America survey of fund managers suggests that 72% think inflationary pressures are transitory, and nearly two-thirds don’t expect any downsizing from the Fed until September.
- Yields on benchmark 10-year notes are up, to 1.491%, while the dollar index gains 0.05% to 90.593 ahead of tomorrow’s Fed statement.
- Bitcoin has earnings above the $ 40,000 mark following comments from Tesla CEO Elon Musk saying that it could resume accepting the cryptocurrency as payment if miners improve their clean energy mix.
- CDC data shows that 145 million Americans have been fully vaccinated against the coronavirus, with about 310.6 million doses administered as of Monday.
- US equity futures suggest a modestly firmer open on Wall Street ahead of May retail sales data at 8:30 AM ET.
US stock futures rose on Tuesday, while the dollar held at multi-week highs against its global currency pairs and oil prices extended recent gains as investors kept market risk bets in check earlier. from the start of the Federal Reserve’s two-day policy meeting.
Last week’s scorching inflation data, as well as a gloomy assessment of the Fed’s stance on billionaire investor Paul Tudor Jones’ ‘transitory’ price hikes yesterday, added at least some upward pressure on yields. bonds in night operations, with 10-year benchmark yields. climbing to 1.485%, but most economists still expect the Fed to delay any move to begin phasing out bond purchases until September.
Meanwhile, Bank of America’s survey of global fund managers, closely monitored, noted that 72% of respondents in this month’s issue say inflation is likely transitory.
And with growth prospects improving as major economies fully emerge from their pandemic malaise, widespread support from both the Fed and the European Central Bank has pushed global stocks to another all-time high on Tuesday, with European stocks. on his longest winning streak in more than two years.
US stocks are also looking for another opening bell peak for the S&P 500, which closed at a record 4,255.15 points last night, with the CBOE’s benchmark volatility indicator, the VIX, remaining at the lowest level in more than of a year, before May. Retail sales data as of 8:30 am ET.
Futures contracts pegged to the Dow Jones Industrial Average suggest a modest opening bell gain of 10 points, with a 5 point increase in the price of the S&P 500 and a 15 point advance from the record close of the technology-focused Nasdaq on Monday.
Shares of Boeing BA are likely to be in the spotlight today as President Joe Biden meets with European Commission President Ursula von der Leyen in Brussels amid reports that the two will discuss a deal. to end a two-decade-long trade dispute over unfair subsidies between the aircraft maker and its European rival Airbus SE (EADSY) – Get report.
Oil prices struggled through a firmer US dollar and positive signals from trilateral talks between Washington, Brussels and Tehran on the fate of the abandoned 2015 nuclear proliferation deal that could end sanctions against Iran and allow it to resume. the sale of its crude oil in global markets.
Contracts for Brent crude for August delivery, the global benchmark, added 68 cents from Monday’s close in New York to trade at $ 73.53 a barrel, while WTI crude rose 66 cents to $ 71.54 a barrel.
In overseas markets, Europe’s Stoxx 600 posted a new high of 459.92 points, while Japan’s Nikkei 225 posted a weakening of the yen, boosting export stocks, to a 0.96% gain that raised the benchmark index to 29,441.30 points.
However, China’s shares returned from Monday’s holiday to trade lower as investors had their first chance to react to the G-7’s harsh assessment of Beijing’s foreign and domestic policy ambitions.