Daily summary: US stocks mixed amid inflation concerns

  • Mixed data from Eurozone
  • Yellen pushes for more stimulus
  • US factory growth slows in February

European indices finished the final session of the week slightly higher despite mixed macroeconomic data. PMI data showed the Eurozone business activity is decreasing for the fourth month in a row, due to weak performance of the service sector. Meanwhile, manufacturing growth jumped to almost three-year high. On the corporate front, Renault reported its biggest full-year loss on record last year while  Danone warned of a difficult first quarter. DAX 30 rose 0.7%, CAC40 0.8 % gained and FTSE 100 finished 0.1% higher.

US indices erased early gains and are trading mixed, even after Treasury Secretary Janet Yellen told CNBC that a large stimulus package is needed for a full economic recovery. She added a $1.9 trillion stimulus deal could help the U.S. get back to full employment in a year. Meanwhile investors continue to monitor rising Treasury yields and worry that strong economic activity and more debt would push the inflation rate higher. On the data front, flash Markit PMI figures pointed to robust economic activity in the services sector, however manufacturing figures disappointed. Existing home sales came in above market estimates. On the corporate front,  Applied Materials stock rose 7% after the company reported an upbeat guidance for the current quarter.

Oil is trading lower, with WTI slightly above $59 a barrel and Brent about $62.75 a barrel. US government expressed its willingness on Thursday to talk to Tehran about a return to a 2015 agreement that aimed to prevent Iran from acquiring nuclear weapons. Elsewhere gold futures rose 0.24% to  $ 1,779.00 / oz, while silver is trading 0.8% higher near $ 27.24 / oz as soaring US treasury yields capped much of the upside momentum.

Applied Materials (AMAT.US) launched today’s session with a bullish price gap and painted a fresh all-time high at $124.49. However upward momentum faded away and price pulled back below local support at $121.06. If the current sentiment prevails, the nearest support lies at the lower limit of the ascending channel. Source: xStation5

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