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Daily summary: Markets in risk-on moods, Wall Street indices rally over 2%

  • European indices finished Friday's session higher. Benchmarks from the region managed to erase early-week losses

  • German DAX gained today but was one of the few European blue chips indices that still finished trading lower week-to-date

  • French CAC jumped 3.4%, marking the best day in more than 3 months

  • Wall Street rallies with major US stock markets indices trading over 2% higher on the day

  • Final University of Michigan data showed a downward revision of long-term inflation expectations showing that Fed's 75 bp rate hike could have been a panic move

  • Money markets push back on 75 bp rate hike bets for FOMC meeting in July

  • US new home sales increased at an annual rate of 696k in May (exp. +585k)

  • TRY rallies as Turkey moves to limit lira loans to foreign investors

  • NZD and AUD are the best performing major currencies while JPY and USD lag the most

  • WTI rallies almost 3% and tests $107 area

  • Cryptocurrencies rally. Ripple and Stellar trade over 8% higher. Bitcoin looks towards $21,000 mark

  • FedEx rallies after fiscal-Q4 results and upbeat forecasts for fiscal-2023

  • Zendesk surges as private equity companies agreed to acquire the company

Final trading day of the week on stock markets was marked with upbeat moods. Indices gained in Asia and Europe. Big gains can also be spotted on Wall Street with major US indices trading over 2% higher at press time. Risk-on moods could also be spotted on the commodity markets as well as FX markets. While recession risk remains real, a drop in US yields is helping shore up the sentiment. Moreover, revision of Michigan data for June showed that long-term inflation expectations did not increase as much as signaled by preliminary reading. Note that Powell said that results of survey data pointing to rising inflation expectations was one of the reasons that Fed decided to hike rates by 75 basis points instead of 50 basis points. As the situation turned out no to be as grim, money markets started to pare bets for a 75 basis point hike at a meeting in July.

OIL.WTI rallies almost 3% and attempts to break above 38.2% retracement of the downward move launched in early-March. Source: xStation5

Daily summary: Dollar continues to strengthen, EURUSD and GBPUSD 1% on the downside
Stock of the week - Bed Bath & Beyond (18.08.2022)
Massive drop in US gas inventories!
DE30: Setback in the short-term upward trend
BREAKING: US jobless claims unexpectedly fall back to 250k