MORNING BID-Still too hot
A look at the day ahead from
April's hot consumer price data did leave bets of aggressive Fed tightening broadly intact and with them the spectre that a hard landing for the world's top economy may become unavoidable.
The fall of the headline figure to below the 40-year peak did provide some comfort, helping world stocks, already flirting with bear market territory, regain some footing after an initial kneejerk plunge. But that bounce was short-lived.
The Nasdaq fell over 3%, logging its worst five-day drop
since
The risk of a recession also reversed the spike in Treasury
yields which now look set to fall further this morning while the
only winner appears to be the dollar which has rocketed to a new
20-year peak. A
Meantime, finance ministers and central bank governors from
Oil too is down. Cryptocurrency markets are in meltdown mode
with so-called stablecoin TerraUSD collapsing and Bitcoin
falling below
Positive soundings from the earnings season in
Key developments that should provide more direction to markets on Thursday:
-
- San Francisco Fed President
- U.S. President Joe Biden will host leaders of the
Association of Southeast Asian Nations (ASEAN) at a summit in
- G7 Foreign Minister meeting
- Final U.S. PPI/initial jobless claims
- U.S. Treasury 30-year bond auction
- U.S. earnings: Alibaba (BABA), Motorola
- European earnings: Aegon, Allianz, BT, KBC Groep, Merck (MRK), Prysmian, Prosiebensat, RWE, Siemens
(Reporting by