English
22
Jun

UK Inflation, API Oil Data, ECB Meeting, Fed Chair at Congress

calendar 22/06/2022 - 05:51 UTC

After trading within a fairly restricted range to the upside over the past week the USD/TRY broke out higher on Tuesday, trading at its daily peak at times close to the 17.5-mark.

Sentiment among cryptos was a bit mixed with the total market cap again falling below $950 billion. While Bitcoin and Ethereum fell again below $21k and $1,100 respectively, some altcoins like Shiba Inu and LEO Token made significant gains with rising by around 27% and 16% respectively since midnight on Monday.

Stock market indices were trading initially strongly higher on Tuesday but after European markets like the Europe 50 and Germany 40 reached their peak in the morning hours and U.S. market indices like the US Tech 100 in the early afternoon and the US 500 in the evening hours markets were moving fairly steadily lower and overall all trading down by around one per cent reaching Wednesday morning.

On Wednesday morning consumer price index (CPI) and producer price index (PPI) data for the United Kingdom can be expected. Meanwhile the Governing Council of the European Central Bank (ECB) is set to hold its non-monetary policy meeting. Jerome Powell, the chairman of the Federal Reserve is set to appear in front of the U.S. Congress on Wednesday for his testimony on the Semiannual Monetary Policy Report.

EUR/USD

As the dollar rebounded from the session lows on Tuesday and further appreciated over the course of Wednesday night, the EUR/USD pair declined by Wednesday morning closer towards the 1.05-level. The euro itself remained fairly neutral to other major currencies with a small weekly decline seen in the EUR/CHF and EUR/GBP pairs, while the EUR/AUD, EUR/NZD and EUR/JPY are up since the beginning of this week.

Relatively few major data releases have been scheduled for the first half of this week, while more indicators like the German and eurozone services and manufacturing PMI numbers are expected on Thursday.

EUR/USD

Europe 50

Airline stocks like Airfrance KLM and Lufthansa settled lower on Tuesday, with especially the former share price reversing significantly after a strong performance on Monday, though the price was still up by more than three per cent compared to the closing levels of last week.

Delivery Hero (-6.20%) significantly underperformed after a strong run on Monday, despite it being the first day the stock was removed from the DAX index and instead included in the less-prestigious MDAX index.

Car manufacturers performed relatively strongly with Stellantis gaining close to three per cent over the course of the trading session, while German manufacturers like Mercedes-Benz, BMW and Volkswagen were up in a range between one and two per cent.

Europe 50

WTI Oil

After a fairly stable prices for oil during the first two days of this week, oil prices started again declining during the night hours on Wednesday with the price of oil hitting a new one month low as a barrel of WTI crude was traded at times in the futures markets below $104.

Due to a holiday in the U.S. on Monday, the release of the weekly oil inventory data will be one day later than usual with the American Petroleum Institute (API) publishing its weekly statistical bulletin on Wednesday and the Energy Information Administration (EIA) releasing its weekly data on crude oil, gasoline and distillate stockpiles on Wednesday.

WTI Oil

US 500

Major stock market indices like the US 500 and the US Tech 100 traded up by well over one per cent as the U.S. stock markets reopened following a long weekend due to a public holiday on Monday. These gains were mostly realised in the first hour of stock trading that day as afterwards index valuations were gradually coming down with the sell-off intensifying in the night hours on Wednesday.

Meta Platforms (-4.20%) was one of the worst-performing blue chip stocks on Tuesday ending the day among the worst three performing S&P 500 component and being by a wide margin the worst one among the NASDAQ Composite Index, followed at a distance by Netflix (-2.82%).

Tesla (+9.24%) was one of the best-performing equities in the index. The company clarified on its recent workforce reduction plans, indicating that it only seeks a net reduction of the workforce by 3.5%. Other companies involved in the electric vehicle market like Rivian (+10.84%), Nio (+8.70%) and Lucid Motors (+7.40%) also outperformed the overall market index.

US 500

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