Investing.com – The latest U.S. inflation data released on Tuesday showed that the annual growth rate fell to 6% in February, and the monthly growth rate was 0.4%. The growth rate slowed down again and was in line with market expectations. However, the monthly increase was 0.5%, higher than the market forecast of 0.4%, and the annual increase of 5.5% was in line with expectations.
The data weakened the probability of the Federal Reserve raising interest rates. According to CME’s FedWatch tool, traders predict that the probability of raising interest rates by 1 yard in March is 80%, and the probability of not raising interest rates is as high as 20%.
Markets will also have U.S. data on Wednesday, as well as February data. There will also be a monthly IEA crude oil market report.
European and American stock markets
In U.S. stocks, the market appears to have priced in Silicon Valley Bank ( SVB Financial Gro (NASDAQ:)), bank stocks rebounded on Tuesday, SPDR S&P Regional Bank ETF (KRE) rebounded more than 2%, First Republic Bank (NYSE:) soared 26.98% to 39.63 per share U.S. dollar, the biggest one-day gain since listing. Western Alliance BanCorp (NYSE: ) shot up 14.36% to $29.87 per share, reversing losses from the previous session.
This also drove the U.S. stock market to rise on Tuesday. The Dow once soared nearly 500 points. As of the close, it rose 336 points or 1.06% to 32155 points; rose 1.65% to 3919 points; rose 2.14% to 11428 points. In terms of futures, (NQZ2) is currently down 0.07%.
However, it should be noted that although bank stocks have rebounded, credit rating agency Moody’s still downgraded its rating on the US banking system from “stable” to “negative”, mainly because of the failure of the Silicon Valley bank. Concerns continued to spread, and the operating environment of the banking industry deteriorated rapidly.
Meanwhile, the chairman of the U.S. Senate Banking Committee, Sherrod Brown, called on Tuesday for the Federal Reserve to act by imposing stricter regulations and pausing rate hikes. He blamed the Silicon Valley Bank thunderstorm on the Economic Growth, Deregulation, and Consumer Protection Act signed into law by former President Trump in 2018, which exempted many small banks in the United States from strict supervision and relaxed regulations on large banks. regulatory requirements.
Elsewhere, Apple Inc (NASDAQ: ) rose 1.41% to $152.59 per share. Foreign media reported that as Apple cut costs, the company delayed some employee bonuses, and Apple is also keeping a close eye on travel budgets and retaining some job openings.
Shares of Facebook parent Meta Platforms Inc (NASDAQ: ) surged 7.25% to $194.02 per share. Meta announced on Tuesday that it would cut another 10,000 jobs, the first tech giant to announce a second round of mass layoffs. The move comes as Meta seeks to turn 2023 into a “Year of Efficiency,” with Chief Executive Mark Zuckerberg promising cost cuts $5 billion, reaching between $89 billion and $95 billion.
Tyson Foods (NYSE: ) closed 0.16% higher in shock at $57.30 per share. Tyson Foods pointed out on Tuesday that the performance of its chicken business was not as good as expected. It will close two chicken farms in May and lay off 1,700 people.
European stocks closed 1.53% higher at 449 points; closed at 15232 points, up 1.83% or 273 points; closed at 7141 points, up 1.86% or 130 points; closed at 7637 points, up 1.17% or 88 points.
It is worth noting that the market’s concerns about the failure of Silicon Valley Bank (SVB) seem to have eased, and European banking stocks rebounded 2.65%. However, Credit Suisse (OTC:) (SIX:) Group said it was adopting a new plan , to fix “significant deficiencies” in its reporting and control procedures over the past two years, the stock price closed down 0.75%, after falling as much as 6.2% in the session.
In addition, the French industrial giant Schneider ( ) rose 2.61% to 152.56 euros.
asian stock market
A-shares closed at 3,245 points, down 23 points or 0.72%, with a turnover of RMB 409.976 billion; at 11,416 points, down 88 points or 0.77%, with a turnover of RMB 522.441 billion; at 2,343 points, down 13 points or 0.59% .
It should also be noted that it rose 0.76%; it is currently at 2.897%.
Hong Kong stocks closed at 19,247 points, down 448 points or 2.3%; closed at 6,439 points, down 2.3%; closed at 3,790 points, down 2.6%; still need to pay attention, closed at 19,549 points, up 285 points, higher than the closing price of the Hang Seng Index yesterday Water 301 points, 22,018 contracts traded.
Other Asian stocks closed at 27,222 points, down 610 points or 2.19%; at 2,348 points, down 61 points or 2.56%; at 7,201 points, down 109 points or 1.5%; and down 1.21%, at 1,037.35 points.
commodity market
Crude oil prices fell sharply on Tuesday. Although the U.S. inflation data was in line with expectations, the core CPI remained high and market worries remained high. If the Fed continues to raise interest rates and triggers a stronger dollar, it will not be conducive to commodity prices in dollar terms. Among them, the price fell 3.47 US dollars or 4.6%, to close at 71.33 US dollars per barrel; fell 3.32 US dollars or 4.1%, to close at 77.45 US dollars per barrel. Both barrels hit their lowest levels since Dec. 9 last year.
On the other hand, prices fell 1.3 percent to close at $2.573 per million Btu.
What needs attention is that the Organization of the Petroleum Exporting Countries (OPEC) released its monthly report, maintaining its global oil demand growth forecast of 2.3 million barrels per day in 2023 unchanged, with daily oil demand reaching 101.9 million barrels. Expectations for growth in Chinese demand were offset by lower forecasts for demand in the United States and Europe, OPEC said.
In terms of the gold market, it closed lower on Tuesday, falling from a five-week high. The inflation rate announced by the United States in February slowed down again, but the monthly increase in core data still exceeded market expectations, making the market continue to bet on a 1 yard rate hike this month ( 25 pips), coupled with the rise in U.S. bond yields, have weakened gold, which has been rising for several days. Among them, New York gold futures for April delivery fell $5.60, or 0.3%, to $1,910.90 an ounce. Meanwhile, it had retreated 0.98 percent to $1,895.2 an ounce.
Foreign exchange and bond market
In currency markets, concerns over the contagion of the banking crisis triggered by Silicon Valley Bank (SVB) eased. It was roughly unchanged at 103.59.
On the other hand, U.S. bond yields soared on Tuesday, jumping 23 basis points to 4.25%, the biggest increase since June 2009, following the biggest one-day drop in decades the previous day. The yield fell the most since 1987 on Monday as the collapse of a Silicon Valley bank dampened rate hike expectations. At the same time, it once rebounded 17.4 basis points to 3.689%.
Meanwhile, the greenback rose against both major safe-haven currencies, rising nearly 0.8 percent to 134.23 yen and 0.16 percent to 0.9128 Swiss franc to the dollar.
It should be noted that it edged up 0.07% to $1.0732, then fell back from a one-month high, depreciating 0.2% to $1.2157. Data on Tuesday showed wage growth in Britain slipped to 5.7 percent in the three months to January, while unemployment remained at record lows.
As of press time, Investing.com’s market data shows that it is currently at 6.8801 and currently at 6.8715.
Finally, it has risen sharply for two consecutive days. On Tuesday, it rebounded by another 9.39% to $26,500, stimulating Coinbase (NASDAQ: ) to continue to rise by 5.9%. Since SVB was taken over, Bitcoin has risen by about 30%. Statistics show that the amount of short selling and liquidation of cryptocurrencies reached 280 million US dollars within 24 hours.
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(Editor: Li Shanwen)