Here are five things you need to know by Tuesday, May 31st:
1. – Stock futures fall as fears of inflation resurface
US equities futures fall on Tuesday, leading investors to the last trading day of the month amid concerns that central banks around the world will not be able to cope with a historic rise in inflation that it continues to put pressure on yields and slow economic growth in the major world. markets.
European inflation hit a new high of 8.3% in May, according to data from the region’s statistics office on Tuesday, after Germany’s figures on Monday showed the fastest pace of rising consumer prices in more than 50 years.
It appears that the increase will also continue after European officials agreed on a plan that would curb about 90% of Russian crude exports to the region as part of a broader package of sanctions linked to its invasion of Ukraine in end of February.
Persistent inflationary pressures also sparked fierce comments from Federal Reserve Governor Christopher Waller, who said at a conference in Frankfurt on Monday that he did not see “no sense” in relieving himself of 50 basis point rate hikes. that we see substantial reductions in inflation ‘in the world’s largest economy.
Fed Chairman Jerome Powell also plans to meet with President Joe Biden at the White House on Tuesday to discuss the state of inflation.
That said, last week’s Wall Street rally was the strongest in two months, and the Bank of America’s Flow Show suggests that nearly $ 22 billion has been spent on U.S. equity funds, the maximum in more than 10 weeks.
The US dollar index, a good indicator of global risk appetite, rose 0.1% to 101,748 overnight trading, while benchmark 10-year Treasury bond yields which move inversely to prices, rose to 2.828%.
In foreign markets, European equities weakened by faster-than-expected inflation data, with the Stoxx 600 falling 0.16% in early Frankfurt trading, while the MSCI index fell ex-Japan for the whole region gained 0.87% thanks to improved manufacturing data. from China and reports that the two-month blockade of Shanghai Covid will end on June 1.
Looking ahead to the last trading day on May on Wall Street, Dow Jones Industrial Average futures were down 225 points, while those tied to the S&P 500 were down 27 points. Technology-focused Nasdaq futures, which fell 23.4% year-over-year, forecast an initial 45-point drop.
2. – Next week: employment data is concentrated as earnings come out
Employment data will take center stage on Wall Street this week as investors look at Friday’s non-farm payroll report for a crucial indication of both consumer strength and the additional pressures wages may have. on the country’s high inflation rate.
Employers are expected to add 320,000 new jobs to the economy in May, at a slower pace than the April figure of 428,000, whose monthly wages will rise 0.4%. The figures, which will be preceded on Thursday by figures from payroll provider ADP, will also provide an indication of the pace and speed with which Americans are willing to occupy an almost record-breaking 11 million open position in the economy. great of the world.
Job data closes a quiet week on Wall Street, with few economic releases and only 7 S&P 500 earnings, including Salesforce CRM, HP Enterprises HPE and Lululemon Athletic LULU.
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Refinitv data show first-quarter earnings grew 11.2% year-over-year to $ 453.12 billion, but this rate is expected to slow to 5.4% during the three months ended June, bringing the share-weighted total to $ 464 billion.
3. – Oil prices rise after EU approves ban on Russian offshore crude
World oil prices rose in earnings on Tuesday after EU officials reached an agreement to ban all imports of crude oil from Russia by sea for the next six months.
The decision, which followed weeks of political business with Hungarian President Viktor Orban, will exclude a pipeline in Budapest, but will effectively cover between 70% and 80% of Russia’s 2.3 million barrels in daily exports to the region.
“This move is favorable to prices. However, the market has had a month to digest the potential ban and therefore we suspect that it already has a price to a large extent,” said the head of commodity strategy d ‘ING, Warren Patterson. “This is reflected in the price action in the first negotiations in Asia this morning.”
WTI contracts for the July delivery, which are closely linked to U.S. gas prices, were up $ 2.01 more than Friday’s close at $ 118.87 a barrel. Brent crude contracts for the same month, the world benchmark price, were last seen $ 1.93 more per session at $ 123.60 a barrel.
In the U.S., gas prices hit another record high on Tuesday, with the AAA indicating a national average price per pump of $ 4.622 per gallon.
4. – Tesla shares higher when Shanghai blockade nears end
Tesla TSLA shares rose in pre-market trading after reports that the carmaker’s key Shanghai factory is approaching pre-Covid production levels as the city wants to end its two-month lock.
Gigafactory 3, as it is known at the Shanghai plant, will reach 70% of its pre-Covid production rate of about 2,600 cars per week this week, Reuters was quoted as saying on Tuesday. The 22-day stoppage, as well as persistent delays related to the Shanghair blockade, will take its toll on second-quarter deliveries, but Jefferies analyst Philippe Houchois predicts a global figure of 275,000, 11.3% below of the record 310,000 in total.
Recent data from the China Passenger Car Association (CPAC) showed that Tesla produced only 10,757 cars in the world’s largest market last month, the lowest in two years.
Tesla shares were up 1.5% in pre-market trading to indicate an opening bell price of $ 770.84 each.
5. – AMC Shares Leap As Top Gun: Maverick Holds Memorial Day Weekend Record
AMC Entertainment AMC shares rose in pre-market trading after a record weekend release of Memorial Day’s highly successful Paramount movie “Top Gun: Maverick.”
Comscore data showed Monday that Top Gun, starring Tom Cruise in retaliation for his iconic 1986 role as Navy fighter pilot Pete ‘Maverick’ Mitchell, earned more than $ 153 million during the four-day week, a figure that both surpassed the previous record set by “Pirates of the Caribbean: End of the World” in 2007 and broke industry forecasts.
AMC shares were up 3.05% in pre-market trading to indicate an opening bell price of $ 14.87 each.