Investors plunge into riskier tech, crude hits $120. Feather

  • countdown to central bank meetings
  • Wall Street heads to strong start
  • Euro rises ahead of Thursday’s ECB meeting
  • US CPI to test thinking on Fed hike on Friday
  • Oil companies raise prices after Saudi Arabia

LONDON, June 6 (Reuters) – Wall Street was set to open higher on Monday, tracking gains in Asia and Europe as investors expected a hike in interest rates in the coming days, though crude oil prices remained high. The price was $120 a barrel.

S&P 500 futures were up 1% and Nasdaq futures were up 1.4%.

US-listed shares in Chinese ride-hailing firm Didi Global are up 50% after a Wall Street Journal report suggested Chinese regulators were preparing to allow mobile apps back in domestic app stores.

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The news helped Hong Kong’s Hang Seng Tech index close 4.6% higher. Stocks in Europe were stronger than open, with STOXX index of 600 companies (.STOXX) up 0.9%.

The change in Riskier Assets came ahead of central bank meetings that investors hope will give clarity on whether inflation is peaking and how slow growth may be.

The European Central Bank meets on Thursday, although it is not expected to start raising interest rates until July, with rate setters at the US Federal Reserve and the Bank of England next week.

“There is still some doubt about whether inflation is peaking,” said Michael Hewson, chief market analyst at CMC Markets.

“We are in a no-man’s land with regards to extreme inflation at the moment, and the reopening of China and the potential tailwinds that it could bring. Oil prices are still a headwind and therefore difficult to gain any direction, Hewson said.

MSCI All Country Stock Index (.MIWD00000PUS) up 0.3%, its recent rebound from the recent bear market remains largely intact.

Blue Chips in London (FTSE) were up 1.2%, with Sterling, dismissing news that British Prime Minister Boris Johnson is to face a vote of confidence by lawmakers from his governing Conservative Party on Monday. read more

Oil prices firmed up after Saudi Arabia sharply hiked prices to sell crude in July, an indicator that even after OPEC+ agreed to ramp up production over the next two months How tight is the supply?

Brent was up 0.2% at $120.02 a barrel. US crude rose 0.2% to $119.14 a barrel.

Gregory Perdon, co-chief investment officer at Arbuthnot Latham, said investors would have to weigh recession factors such as inflation, rising rates, the war in Ukraine and a still higher dollar against liberal monetary policy, though slowing economic growth and Chinese stimulus. It’s good.

“On balance, I think risk taking in this environment would be more beneficial than betting against riskier assets,” Perdon said.

“We had seven out of eight weeks of downside on the S&P 500 and this is probably a good entry point in terms of adding risk to the portfolio, assuming you don’t have too much exposure to begin with.”

The sentiment was aided by comments by US Commerce Secretary Gina Raimondo that President Joe Biden has asked his team to look at the option of lifting some tariffs on Chinese imports. read more



At an ECB meeting on Thursday, President Christine Lagarde is believed to be certain to ratify the end of bond-buying this month and the first rate hike in July, though the jury is out on whether certain investment banks form It would be 25 or 50 bps. Their hopes were dashed. read more

The currency markets are headed for a rate hike of 130 bps by the end of the year, with a 50 bps increase in a single sitting by October.

The prospect of ECB rates turning positive this year helped the euro reach $1.0724, which is somewhat distant from its recent trough of $1.0348, though it struggled to clear the $1.0786 resistance. Is.

The euro also hit a seven-year peak at 140.39 on the yen, after climbing 2.9% last week, while the dollar, held at 130.67 yen, also gained 2.9% last week.

Against a basket of currencies, the dollar stood at 102, having changed little on the day after gaining 0.4% last week.

After the ECB on Thursday, markets will check US consumer price reports the next day, especially after EU inflation hit many a record high last week.

Forecasts are for a sharp 0.7% growth in May, although the annualized momentum is seen at 8.3%, while core inflation has slowed slightly to 5.9%.

A higher number would only add to expectations of an aggressive tightening by the Fed next week, with markets already up half a point in June and July and a price of about 200 basis points (bps) by the end of the year.

In commodity markets, wheat futures jumped 4% after Russia fired missiles at Ukraine’s capital Kyiv, undermining hopes of progress in peace talks. read more

Gold was up 0.2% at $1,854 an ounce, having been in a narrow range for the past few weeks.

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Editing by Alex Richardson and John Stonestreet

Our Standards: Thomson Reuters Trust Principals.

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