- The macro event of the day was undoubtedly the U.S. CPI inflation reading, which, despite the higher indication, does not seem to have changed investors' expectations for the next FOMC meeting on interest rates. As a reminder, money market valuations currently give a 95% probability that the Fed will decide to keep interest rates at the same level.
- The European session ended in a relatively weak mood. Germany's DAX lost 0.4%, France's CAC40 lost 0.42% and the benchmark Euro Stoxx 50 index fell 0.46% on the day.
- Wall Street's gains accelerated around the middle of the session. The Nasdaq is gaining 0.7% against a 0.4% rally in the S&P 500, but the Dow Jones is still trading unchanged for the day.
- U.S. equity market attention is focused on the automotive sector, with shares of Detroit-based conglomerates Ford (F.US), General Motors (GM.US) and are trading with elevated volatility amid ongoing negotiations with UAW.
- Chinese electric car manufacturers are performing poorly today, and are trading down as the EU looks to halt imports of cheaper cars from China, fearing a deepening crisis in European industry and a decline in the competitiveness of European concerns. Xpeng (XPEV.US) shares are losing more than 1.5%.
- American Airlines (AAL.US) and Spirit Airlines (SAVE.US) stocks are losing more than 3.5% in today's session as they cut their earnings forecasts in the face of higher costs (especially fuel costs).
- In the FX market today, we saw relative strengthening of the New Zealand dollar and the Australian dollar. On the other hand, the Swiss franc and the Japanese yen performed poorly. Elevated volatility is taking place on the USDNOK. The British pound is in a precarious position in the face of both weak GDP data and strong wage growth (yesterday), creating an uncertain space for further BoE decisions.
- The commodities market is dominated by declines. Natural gas loses nearly 2.5%, BRENT oil below $92 per barrel amid an unexpected rise in US hydrocarbon stocks.
- Cryptocurrencies are seeing renewed limited volatility, with Bitcoin failing to dynamically extend its upward momentum, still trading at $26,000.
