Relevance up to 09:00 2022-07-05 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
US and Asian stocks tumbled as the economic slowdown and high inflation continue to weigh on markets.
Although indices rose ahead of the US Independence Day, they fell short of session highs, with both the S&P 500 and Nasdaq 100 shedding more than 0.5%. This displays that in 6 months, the two lost 100 and 50 points, respectively.
STOXX50 and DAX also fell 10 and 4 points respectively in half a year. Both are currently near yearly lows and are likely to break through it.
Talking about statistics, government debt extended its rally because of expectations on further rate hikes by central banks. Bonds also rose in New Zealand and Australia, while Treasury bond futures were virtually flat due to a hiatus in the US. Signs of economic weakness are becoming more and more evident, albeit in personal spending or manufacturing. Investors are increasingly worried about the recession and its consequences, instead of focusing solely on higher price pressures. One of the fears investors now have is that the Fed will be too slow to back down from raising rates.
In China, officials are trying to fend off a Covid outbreak that could hit an economically vital region. This is another test of Beijing's strategy to eradicate the pathogen through mass testing and disruptive quarantines.
Other news this week:- Australia's rate decision (Tuesday);- PMI data in Eurozone, China, India and other countries (Tuesday);- US report on manufacturing orders and durable goods (Tuesday);- FOMC Minutes, US PMI, ISM report and JOLTS (Wednesday);- EIA report on crude oil inventories (Thursday);- Speeches of Fed representatives Christopher Waller and James Bullard (Thursday);- ECB report on its June policy meeting (Thursday);- US employment report for June (Friday).
