INVESTING.com - The U.S. CPI released on Wednesday slowed less than expected, with the dollar shaking higher, gold and oil prices rising and U.S. stocks falling collectively. Today's focus is on U.S. PPI, U.K. GDP and the monthly crude oil report.
[Warm up - Overnight Market Review
Global bond markets: U.S. bond yields mostly declined on Wednesday after U.S. consumer price data showed a slowdown in inflation in April, but not enough to ease market concerns that the Fed's actions to cool prices could trigger a recession. The yield on the 10-year U.S. Treasury note fell 6.6 basis points to 2.925%; the yield on the 2-year U.S. Treasury note rose 3.3 basis points to 2.6474%; and the 10-year Chinese Treasury note rose 1.6 basis points to 2.842%.
Global currency markets: The dollar moved in a shocking fashion on Wednesday, with dollar index futures up 0.07% to 104.02. The euro strengthened as the European Central Bank reinforced expectations that it will raise interest rates in July to fight record inflation, which would be the first rate hike in more than a decade.
Global gold markets: Gold prices resumed their upward trend on Wednesday, after falling following the release of U.S. inflation data and a weaker dollar. Gold futures were up 0.7 percent at $1,853.70 an ounce.
International oil markets: Oil prices jumped more than 5% on Wednesday after Russia delivered less natural gas to Europe and the announcement of sanctions against some European gas companies increased uncertainty in the global energy market. wti crude oil futures rose 6% to $105.71 per barrel and London Brent crude oil futures rose 4.9% to $107.51 per barrel.
A-shares: The Shanghai Composite Index rose 0.75% to close at 3058.43 points on Wednesday; the Shenzhen Component Index rose 1.8% to close at 11,109.48 points; the GEM Index rose 3.07% to 2346.15 points; the KCI 50 rose 3.12% to 1002.41 points; the FTSE China A50 Index rose 1.42% to 13230.77 points.
Hong Kong stocks: Hong Kong Hang Seng Index rose 0.97% to 19,824.57 points on Friday; Hang Seng China Enterprises Index rose 1.67% to 6,769.72 points; Hang Seng Technology Index rose 2.89% to 4,019.28 points.
Taiwan stocks: Taiwan's weighted index was down 0.35% at 16,606.25 points on Wednesday. TSMC (TW:2330) was up 0.58% at TWD 521; Hon Hai (TW:2317) was down 0.96 at TWD 103; and MediaTek (TW:2454) was up 1.1% at TWD 829.
European stocks: European stocks closed higher for the second straight session on Wednesday, with strong corporate results and a surge in economically sensitive sectors boosting markets. The pan-European Stoxx 600 index rose 1.7 percent to 420.3 points; the U.K. FTSE 100 index closed 1.44 percent higher at 7,347.8 points; France's CAC 40 index closed 2.5 percent higher at 6,269.73 points; Germany's DAX 30 index rose 2.17 percent to 13,828.64 points.
U.S. stocks: U.S. stocks fell sharply on Wednesday after U.S. inflation data did little to ease investor concerns about interest rates and the economic outlook. The S&P 500 index fell 1.65 percent to 3,935.18, the Dow Jones Industrial Average fell 1.02 percent to 31,834.11 and the Nasdaq Composite Index dropped 3.18 percent to 11,364.24.
Cryptocurrencies: As of writing, BTC is down 3.38% at $29,953.1 in 24 hours; ETH is down 8% at $2,163.04 in 24 hours; Dogcoin is down 18.13% at $0.88388 in 24 hours and SHIBA is down 22.15% at $0.00001276 in 24 hours.
[Heavyweight - Market Highlights
U.S. CPI growth in April recorded 8.3% year-on-year, the drop was less than expected
U.S. April unadjusted CPI recorded an annual rate of 8.3%, falling back from the high level, but the fall was lower than market expectations, and U.S. inflation is still at a high level. Following the release of the U.S. CPI data, money markets bet on the Fed to raise interest rates by 70 basis points in June, compared to 68 basis points previously.
U.S. Senate confirms Lisa Cook to serve as Fed governor
According to market news, the U.S. Senate has confirmed Lisa Cook to serve on the Federal Reserve Board of Governors, meaning she will become the first black woman to hold the position in the 109-year history of the Fed.
Separately, U.S. Senate Banking Committee Chairman Brown said a vote on the confirmation of Fed Chairman Powell and Fed governor nominee Jefferson's nominations could take place later Wednesday local time.
Dallas Fed appoints Lorie Logan as new chair
The Dallas Federal Reserve on Wednesday named Lorie Logan as its next chairman, replacing Kaplan, an appointment that will take effect Aug. 22. The Dallas Fed president will next receive a monetary policy vote in 2023.
U.S. Domestic Crude Oil Production Falls for First Time Since January
According to the EIA report, U.S. EIA crude oil inventories unexpectedly recorded an increase of 8.487 million barrels in the week to May 6; EIA Strategic Petroleum Reserve stocks recorded a decrease of 6.991 million barrels, the largest decline since the week of August 20, 1982; U.S. domestic crude oil production decreased by 100,000 barrels to 11.8 million barrels per day, the first decline since January.
Gazprom did not deliver gas to sokhranivka
Gazprom did not deliver gas to sokhranivka, the Ukrainian side said, adding that the volume of gas transported from Russia via Ukraine fell by about a third on Wednesday. The Kremlin said Russia remains committed to fulfilling its contractual obligations.
European Commission Considers Limiting Stablecoin Issuance
The European Commission is considering placing strict limits on the ability of stablecoins to replace the widespread use of fiat currencies, according to a document seen by CoinDesk. EU finance ministers have proposed tough measures to stop issuance of stablecoins with more than 1 million transactions in a single day or 200 million euros in transaction volume.
Voice - Investment Banking Institutions' Views]
St. Louis Fed President Bullard: Base case does not include 75 bps rate hike
Bullard said that the scope of inflation has become broader and more persistent, the Fed must let interest rates above neutral in order to let prices fall, but the "base case" does not include a 75 basis point increase in interest rates, the federal funds rate target by the end of the year should be around 3.5%.
ECB President Lagarde: July rate hike at the earliest
On Wednesday, ECB President Lagarde said the asset purchase program is expected to end at the beginning of the third quarter, and may raise interest rates a few weeks after the end of the bond purchases, with action to be taken in July at the earliest. ECB Governing Council member Villeroy also said that the ECB will start raising interest rates this summer.
[Domestic Highlights
Foreign Ministry: It's time for the U.S. to reconsider and remove the imposed tariffs as soon as possible
According to U.S. media reports, Biden said it is possible to eliminate some of the tariffs imposed on Chinese products under Trump to deal with inflation. In response, the Foreign Ministry responded that trade wars benefit no one and that it is time for the U.S. to reconsider and remove the imposed tariffs as soon as possible.
China's 2022 CPI rises moderately in April, PPI rises back down
According to the National Bureau of Statistics, in April, the CPI rose 0.4% YoY and 2.1% YoY due to factors such as the domestic epidemic and the continued rise in international commodity prices. the PPI rose both YoY and YoY.
CCA: April auto production and sales showed a significant decline, new energy vehicles performed better
According to CCA, China's auto sales in April were 1.04 million units, down 50.6% year-on-year; China's new energy vehicle sales in April were 299,000 units, up 44.6% year-on-year.
Guangzhou mortgage rates dropped again, the lowest has reached 4.6% benchmark line
On May 11, it was reported that Guangzhou ushered in a new wave of mortgage rate reductions, the third wave of the year. After this wave of price cuts, most banks are implementing interest rate standards of about 5.2%-4.8% for the first set of mortgage rates; at the same time, the lowest has been reduced to 4.6% of the benchmark line for quality customers of these banks and some foreign banks.
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UK March GDP (%)
16:00
IEA releases monthly crude oil market report
20:30
US April PPI Annual Rate (%)
20:30
U.S. initial jobless claims for the week ending May 7 (million)
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