“We just don’t see how we don’t get a recalibration here of analysts lowering the E in P / E.”
Michael Burry, the founder of Scion Asset Management that became famous for “The Big Short,” suggested on Twitter that the “Bullwhip effect” happening in the retail sector could cause the Federal Reserve to reverse rate hikes and its policy of quantitative hardening.
The local currency fell 0.4% to 69.18 U.S. cents.
At bitstamp.net, Bitcoin was down 2.3 percent to $ 20,765.06 at 5:12 a.m. AEST.
Treasury bonds fell and raised the U.S. 10-year bond rate to 3.2%. Yields have pulled out of June highs due to growth concerns, but whether this marks the end of the Treasury bear market is a lively debate. The dollar fluctuated.
Wall Street lost ground, with few catalysts to inspire much conviction as investors approach the middle of a year in which stocks have been hit by rising inflation concerns and tightening of Fed policy.
The major US stock indices were the last moderately lower after fluctuating for much of the session, with the weakness of interest-sensitive megacaps such as Amazon, Microsoft and Alphabet providing the largest friction.
Today’s agenda
Local: cap
Data Abroad: Housing price data across the UK; US FHFA housing prices; June US Richmond Fed Index and June Consumer Confidence Index
Market highlights
ASX futures fell 9 points or 0.1% to 6,584 near 5.21 a.m. AEST
- AUD -0.4% to 69.18 US cents
- Bitcoin $ 20,765.06 at 5:12 a.m. AEST.
- A Wall St: Dow -0.2% S&P 500 -0.2% Nasdaq -0.7%
- New York: BHP + 2.3% Rio + 0.4% Atlassian -0.8%
- Tesla -0.5% Apple flat Amazon -2.5%
- In Europe: Stoxx 50 + 0.2% FTSE + 0.7% DAX + 0.5% CAC-0.4%
- Cash -0.3% to $ 1,824.40 / oz at 3:02 p.m. New York time
- Brent crude + 1.5% to $ 114.81 a barrel
- US oil + 1.7% to $ 109.31 a barrel
- Iron ore + 5.7% to $ 120.60 per tonne
- 2-year yield: US 3.1% Australia 2.76%
- 5-year yield: US 3.2% Australia 3.48%
- 10-year yield: US 3.2% Australia 3.77% Germany 1.54%
- US prices from 15.18 in New York
United States
The Nasdaq fell at noon, dragged down by high-growth stocks as last week’s rebound to ease inflation concerns lost strength, while the recovery in oil prices boosted corporate stocks energy.
Meanwhile, one of Wall Street’s most prominent bearers sees the rise in US stocks spread, before the sale resumes. Morgan Stanley strategists led by Michael Wilson say the S&P 500 index could rise another 5% to 7%, before picking up losses.
“There will be a lot of fund managers rebalancing their portfolios this week, which could mean more volatility,” said Fawad Razaqzada, market analyst at City Index and Forex.com. “Betting on a bear market could be a costly mistake, while short selling is not as lucrative as it was when the markets were higher.”
Europe
The UK’s FTSE 100 ended with a maximum of more than a week, driven by the prospect of global infrastructure financing, which boosted the shares of major oil and mining companies.
The index rose 0.7% and reached its highest closing level since June 16, while the nationally-focused FTSE 250 mid-cap index rose 1.0%.
“The burst of global enthusiasm for stocks has put a spring on the FTSE 100’s passage earlier in the week,” said Hargreaves Lansdown analyst Susannah Streeter.
Large oil companies Shell and BP rose more than 1.5%, leading the index’s gains.
Meanwhile, Anglo American, Rio Tinto and Glencore mining shares gained between 1.7% and 3% after Group of Seven leaders pledged to raise $ 600 billion in public and private funds in five years to fund the necessary infrastructure in developing countries.
Bargain hunters bet on Meta. Stock collectors from value companies Dodge & Cox, First Eagle Investment Management and Artisan Partners bought millions of Meta shares this year. Index tracking investors will now also buy: Following FTSE Russell’s annual review of its benchmark indexes, Meta on Monday joined other old Netflix and PayPal growth estimates on the company’s value indices , which serve as the basis for billions of dollars of passive portfolios.
Goods
A cap on the price of Russian oil and a “largely symbolic” ban on the country’s gold imports were the main commodity issues at the G7.
The G7’s plan to limit Russian oil prices will affect the main pillar of the Kremlin’s finances after the invasion of Ukraine, and aims to limit the ravages that are causing high energy prices around the world.
Details have not been agreed at the G7 summit in Elmau, Germany, but the basic idea would be to link the price cap to services that make oil trade possible. For example, insurers could not cope with shipments that are above the limit, wherever it is fixed. As these service providers rely heavily on the European Union and the United Kingdom, Russia is expected to have difficulty finding large-scale alternative solutions.
Limiting the price would reduce the Kremlin’s oil revenues: at the start of the war, Europe alone was about $ 450 million a day.
Meanwhile, gold rose after the G7 planned to announce a ban on new gold imports from Russia, although analysts saw the move as “largely symbolic.”
“While gold prices reacted positively to this morning’s news, we see a limited fundamental impact of a ban,” said Carsten Menke, an analyst at Julius Baer Group. “This is due to the low relevance of supply when it comes to the formation of gold prices.”
West Texas Intermediate crude rose 2.1% to $ 109.84 a barrel Gold futures fell 0.4% to $ 1,823.60 an ounce