The NYSE Fang + index rose 3.2 percent. The VIX fell 6.5% to 25.72.
Ryan Detrick of LPL Financial said that when the S&P 500 gained more than 6% in one week, as it just did, the index was 12.5% higher on average six months later. 21.7% plus a year later. “In other words, these big weeks usually mark the beginning of strength, not the end.”
“A healthy report on the current consumer, as revenue and spending increased, price pressures moderated (though not much) and upward revisions in previous months show no sign of economy on the verge of recession “, according to First. Trusted advisors.
Lydia Boussour of Oxford Economics said the latest reports on personal income and expenses provide “some reassurance that the mainstay of the economy remains strong in the face of historic inflation and rising costs of loans “. But there is a bumpy road for the US economy. “
Boussour said inflation showed some signs of moderation as the overall PCE deflator rose 0.2% m / m, the weakest advance in seventeen months, while core PCE inflation rose a 0.3% for the third consecutive month. As a result, annual general inflation cooled 0.3 percentage points to 6.3 percent, the first step down from November 2020, while core inflation cooled further by 0, 3 points per point to 4.9 percent.
“Given the persistently rising risks to inflation and the aggressive political stance of Fed officials, we now expect a total of 250 bp of rate tightening this year,” he also said. “We believe the Fed is willing to increase the Fed’s rate of funds by 50 bp at each of its June and July meetings before slowing the rate of hardening to 25 bp at the remaining meetings of the year.”
Market highlights
ASX futures rose 83 points or 1.15 percent to 7271 near 7 a.m. AEST
- AUD + 0.9% to 71.59 US cents
- Bitcoin -2.7% to $ 28,752.34 at 7:45 a.m. AEST
- A Wall St: Dow + 1.8% S&P 500 + 2.5% Nasdaq + 3.3%
- New York: BHP + 3.8% Rio + 1.5% Atlassian + 5.5%
- Tesla + 7.3% Apple + 4.1% Amazon + 3.7% Alphabet + 4.2%
- Stoxx 50 + 1.8% FTSE + 0.3% CAC + 1.6% DAX + 1.6%
- Cash + 0.2% to $ 1,853.72 at 4:59 p.m. New York
- Brent crude + 1.2% to $ 118.80 a barrel
- Iron ore + 2.4% to $ 134.45 per tonne
- 10 Year Yield: USA 2.74% Australia 3.25% Germany 0.96%
- US prices from 13:59 in New York
United States
US stock exchanges will close on Monday in commemoration of Memorial Day.
The U.S. Securities and Exchange Commission (SEC) is investigating the revelation of Tesla CEO Elon Musk of his stake in Twitter in early April, according to a letter the agency sent him that month.
Robinhood Markets lawyers said they had reached an agreement in principle to resolve the disputes of some investors who were barred from trading shares in high-flying stocks during an interruption in March 2020. No details were revealed. .
Latest US data
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.9% last month, beating expectations of a 0.7% increase.
March data was revised above to show that spending rose to 1.4% instead of 1.1% as previously reported. The strength of spending is though consumer sentiment is at its lowest level since 2011.
Personal income rose 0.4%, and wages accounted for most of the increase. The savings rate fell to 4.4%, the lowest since September 2008, from 5.0% in March. This suggests that households have been taking advantage of the more than $ 2 trillion in savings accumulated during the COVID-19 pandemic.
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Although inflation continued to rise in April, it was not as large as in recent months. The Consumer Spending Price Index (PCE) rose 0.2 percent, the smallest gain in November 2020, after rising 0.9 percent in March.
In the 12 months to April, the PCE price index rose 6.3% after jumping 6.6% in March.
The annual rise in the PCE price index is slowing as last year’s big gains dropped the calculation.
Excluding volatile food and energy components, the PCE price index gained 0.3%, up the same margin for three consecutive months. The so-called PCE core price index rose 4.9% year-on-year in April, the smallest gain since last December, after rising 5.2% in March.
It was the second month in a row that the rate of increase in the annual PCE price index slowed.
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The University of Michigan’s final May sentiment index fell to 58.4 from a preliminary reading of 59.1, data released Friday showed. In April, the indicator stood at 65.2.
Households have become especially pessimistic about their short- and long-term outlook for the economy. An indicator of current conditions fell to a 13-year low of 63.3, while a measure of future expectations fell to 55.2.
Consumers expect prices to rise by 5.3% over the next year, staying close to a four-decade high. They expect prices to rise at an annual rate of 3 percent over the next five to ten years.
Europe
European stocks marked their best week since mid-March, ending on Friday with a strong note.
The pan-European STOXX 600 index rose for the third consecutive session, closing 1.5%, bringing weekly gains to 3%. The German DAX finished at a one-month high of 1.6 percent.
Technology stocks led the cross-sector gains, up 3.3%, while industrial and luxury stocks were among the most important drivers of the STOXX 600.
London’s FTSE 100 blue-chip outperformed on Friday as energy stocks tracked down oil prices and utilities worried about a possible unexpected tax.
Goods
Russian steelmakers were the most profitable in the world industry before the war in Ukraine, but now they are forced to sell to some buyers with big discounts.
Heavyweights like Severstal PJSC face demands from Asian importers to sell at discounts of up to 40 percent off the market price of the steel slab, according to three people familiar with the matter, who asked not to be identified because the information is “. t public. Turkish customers also want price cuts, people said.
Some Russian steel products have become unprofitable because the sector is also being hit by a strong ruble and rising coal, transport tariffs and shipping insurance costs, people said.