Wall Street contrasted: down the Dow Jones, which lost 0.10% to 34,566 points; the S&P 500 rises by just 0.10% to 4,232 points, surpassing the previous closing record. The Nasdaq advanced 0.38% to 13,978 points.
Waiting for this week’s US market mover: the US consumer price index, one of the main inflation thermometers, which will be announced tomorrow.
Christine Lagarde’s ECB Governing Council will also meet tomorrow: waiting for the announcement on rates and for the update of the estimates on GDP and inflation in the Eurozone, which should be revised upwards.
Investors are also wondering if Lagarde & Co will release some sort of roadmap to begin reducing asset purchases that occur with pandemic QE (PEPP), worth € 80 billion per month.
The two events – US inflation and ECB announcements – will affect the trend of global equities, sovereign bond rates in particular in the US and the Eurozone, and forex. The euro-dollar ratio rises 0.31% to $ 1.2210.
It should be noted that the April data relating to US inflation had rekindled fears of inflation, as it rose by 4.2%, at the fastest pace since 2008. The fear is always the same: that of the tapering of Quantitative easing from part of Jerome Powell’s Fed.
For the May Consumer Price Index, economists interviewed by Dow Jones expect an increase of 4.7%, thus higher than + 4.2% in April.
Inflation anxiety is also gripping China: the producer price index, that is, the prices that factories impose on wholesalers, is widespread today.
Conditioned by higher commodity prices, the figure flew 9% yoy in May, at the strongest pace since 2008. The jump was greater than the + 8.5% expected by the consensus and the + 6.8% of April. On a monthly basis, the increase was + 1.6%.
But in the United States, the fears about inflation recede, if we consider that the rates on 10-year US Treasuries have also fallen below the threshold of 1.50%, to 1.495%, the lowest since May 7th.
Meanwhile, the stock meme craze continues, with traders who are now shifting their attention to other stocks, especially Clover Health: prices are up by another + 13%, after yesterday flying 85% between trading volumes. exchange explosives.
Among the popular names among Reddit traders there is also Wendy’s which, however, after yesterday’s 25% rise, falls back by more
AMC Entertainment falls by over -11%, GameStop falls by 2%, BlackBerry falls by over -6%.