market review 14 May 21

14 May 21

Dollar Up, but Inflation Set to Remain “Big Theme” Over Next Few Months

The dollar was up on Friday morning in Asia, set to post a weekly gain. Investors are now beginning to assess the risk that U.S. inflation will rise faster and prompt central bank interest rate hikes sooner than expected.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.02% to 90.755 by 11:23 PM ET (3:23 AM GMT).

The USD/JPY pair edged up 0.14% to 109.61.

The AUD/USD pair inched down 0.06% to 0.7724 and the NZD/USD pair inched up 0.04% to 0.7174.

The USD/CNY pair inched down 0.08% to 6.4457 and the GBP/USD pair inched down 0.07% to 1.4040.

Investors digested even more economic data after inflation data, including the core Consumer Price Index, was higher than expected.

https://www.investing.com/news/dollar-up-but-inflation-set-to-remain-big-theme-over-next-few-months-2506297

https://www.investing.com/currencies/usd-jpy-chart

European Stock Futures Higher; Fed Officials Soothe Inflation Concerns

European stock markets are seen opening higher Friday, helped by the rebound on Wall Street as Federal Reserve officials managed to ease investor jitters over growing inflationary pressures.

At 2:05 AM ET (0705 GMT), the DAX futures contract in Germany traded 0.1% higher, CAC 40 futures in France climbed 0.6% and the FTSE 100 futures contract in the U.K. rose 0.4%.

All three major U.S. stock indexes notched solid gains on Thursday, bouncing back from three straight days of selling on worries that rising inflation will push the Federal Reserve into tapering its ultra easy monetary policies earlier than it is currently guiding.

The blue-chip Dow Jones Industrial Average closed 1.3%, or over 400 points, higher, the S&P 500 gained 1.2%, its biggest percentage gain in over a month, while the Nasdaq Composite picked up the rear, rising 0.7%.

https://www.investing.com/news/stock-market-news/european-stock-futures-higher-fed-officials-soothe-inflation-concerns-2506342

https://www.investing.com/indices/germany-30-chart

 

Stocks rebound as Fed officials calm inflation fears, for now

Japanese shares led a rebound in Asian markets on Friday, building on the lead from investors on Wall Street snapping up stocks that would benefit most from an economic revival.

The rally interrupted a three-day rout for stocks globally, as market jitters over accelerating U.S. inflation were calmed by Federal Reserve officials reiterating that price pressures from the reopening of the economy would prove transitory.

Tokyo’s Nikkei jumped 2.2%, while MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.8%,

Chinese blue chips rose 1.7%, while Australia’s benchmark rallied 0.8%.

“U.S. equities were up, so there is a bit of relief in Asia,” said Frank Benzimra, head of Asia equity strategy at Societe Generale (OTC:SCGLY) in Hong Kong.

However, “we certainly are going to have some volatility near-term,” as markets react to CPI and other economic indicators for clues on the path for U.S. monetary policy.

The Fed may open the discussion on tapering its asset purchases as soon as the policy meeting next month, he said.

https://www.investing.com/news/economy/stocks-rebound-as-fed-officials-calm-inflation-fears-2506281

https://www.investing.com/indices/us-spx-500-futures-streaming-chart

 

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. UR Trade Fix Ltd accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Past performance does not constitute a reliable indicator of future results and future forecasts do not constitute a reliable indicator of future performance.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests when providing our services