Stock Market Week Ahead: S&P 500 & DAX 40 ForecastĪll of Nothing on US CPI.
consumer price index report could show June inflation accelerated to new multi-decade highs, a result that could boost Treasury yields and the U.S. US Dollar Forecast: June US Inflation Data Could Reinforce DXY’s Bullish Momentum CURRENCIES AND GOLD Fundamental Forecasts: China’s second-quarter GDP will also be known. Australia’s latest jobs report will also cross the wires. Outside of CPI, the Bank of Canada rate decision is next week where a 75-basis point hike is expected. Another strong print, especially amid the latest jobs report, could easily restore market volatility. With that in mind, traders ought to remain vigilant. Mind you, the June reading is what inspired the 75-basis point rate hike. On Wednesday, headline CPI is expected at 8.8% y/y, which would be up from 8.6% in June. Now, all eyes are turning to July’s US inflation report.
Another solid US non-farm payrolls report, which also included higher-than-expected average hourly earnings, continued to point to a scenario where the central bank needs to maintain its rate hike course.Īll of this did not bode well for the anti-fiat yellow metal, with gold prices seeing the worst weekly performance in 2 months. However, this reversed course at the end of the week. Markets were initially pulling back hawkish Federal Reserve policy expectations amid global growth concerns. The Euro notably underperformed as markets continued trimming back hawkish ECB policy expectations. A notable exception was the commodity-linked Australian Dollar, which pulled off a rise during the final few days of the week as growth-linked Copper prices gained. Meanwhile, Japan’s Nikkei 225 and Australia’s ASX 200 rose 2.24% and 2.11% respectively.ĭespite the improvement in sentiment, the haven-linked US Dollar outperformed its major peers. In Europe, the DAX 40 gained 1.58% while the Euro Stoxx 50 pushed forward 1.69%. On Wall Street, the Nasdaq 100 gained 4.71% while Dow Jones futures gained just 0.87%. "The crippling effect of oil prices above $130 would send many European economies into a recession," said Edward Moya, a senior market analyst at OANDA, in a note to investors.Market sentiment improved this past week, with information technology shares leading the way. The impact would be worse for Europe, which imports a substantial part of its energy needs from Russia. Higher energy prices threaten to worsen inflation in the U.S., which is already at its highest level in 40 years. The news briefly sent Brent crude, the global benchmark, to above $130 per barrel, its highest since 2008. Adopting such a move would mark a major escalation from the current round of comprehensive financial and economic sanctions. and Europe have so far avoided directly sanctioning Russia's energy exports. and its European allies were in discussions to potentially ban oil imports from Russia after the country's invasion of Ukraine. Secretary of State Antony Blinken told CNN on Sunday that the U.S. Here are 4 things to know Potential ban on Russian oil imports spooks markets The S&P 500, for example, lost $1.08 trillion in market value on Monday and has lost a total of $4.76 trillion for the year, according to S&P Dow Jones Indices.īusiness Stocks are in turmoil as Russia invades Ukraine. The declines extend what has been a miserable year for Wall Street, with all three indexes falling in each of the previous two months. The Nasdaq had been flirting with a bear market in recent weeks.
It has now entered what's known as a bear market, or down more than 20% from its record high in November. Meanwhile, the S&P 500 lost nearly 3% on Monday to post its worst daily loss since October 2020. The Dow now joins the S&P 500 in what's called correction territory, or a drop of more than 10% from recent highs. Stocks sank on Monday, with the Dow Jones Industrial Average falling nearly 800 points after crude prices touched their highest level since 2008, raising fears about the global economy. The Dow Jones Industrial Average slumped nearly 800 points on Monday, entering what's called a correction. Traders work on the floor of the New York Stock Exchange in New York City on March 4.
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