Gonet: market news as of June 10

Dow -1.94%, S&P 500 -2.38%, Nasdaq -2.74%, Russell 2000 2.12%, SOX -2.69%, Eurostoxx -1.70%, SMI -1.26%.

The week started well for the stock indexes, the mood in the market gradually calmed down, but yesterday a new squadron of bad news flew over the trading halls and caused quite a mess. Growing concerns about the real state of global growth are infecting the tourism industry, most airlines and hotels retreated significantly yesterday, and the new partial closure of the city in Shanghai is not entirely reassuring. Speakers’ eyes are on Christine Lagarde and the European Central Bank (ECB), I return to this, and everyone is ignoring the weekly report on unemployment benefits in the United States, which is again rising sharply from 229,000 requests, the highest since July last year. Therefore, market and economic statistics increasingly call into question the ability of the world economy to continue to grow and, above all, not to make a hard landing. At the same time, the crutch has been taking a day off for the past few days (China’s shares are listed on Wall Street). KWEB’s ETF fell 6.7 percent as Alibaba fell 8.1 percent after Chinese officials thwarted plans to resume Jack Ma Ant’s IPO.

As you can see, Thursday in the market is quite difficult, nothing inspires optimism, and the main course of the day (ECB) only adds fuel to the fire. The European Central Bank raises inflation forecasts and reduces short-term growth prospects. The central bank is targeting the market at 25 basis points in July, slightly less than previously expected, but the ECB adds that “if the medium-term inflation forecast is maintained or worsens, it will be appropriate to” increase “in September.” Read: ECB opens doors to increase by 50 basis points in September, and this decision will depend on the statistics available at the time, so we are facing the ECB pigeon in the short term and the hawk in the medium term. anxious than expected, and that’s all the market is accepting, sending European government bond yields to the skies 10-year-old German Bund rose 10 basis points to 1.45% this morning, France’s OAT returns 2.01% , and one of the most notable movements is in Italy, where the 10-year figure increased by 22 points in one movement, reaching 3.65%. that Italian debt is perceived by market participants as more risky. It will be recalled that the ECB has remained flexible for a long time, in particular to support the Italian banking system, which is in great need of financing.

There is one that did not win from the ECB yesterday, the euro, which first soars to finally go south and trade at 1.0630 against the dollar this morning. Finally, this morning the market estimates prices with a probability of growth of 200 basis points by the end of the year.

Volatility resumes its upward trajectory almost everywhere, VIX (SPX volatility) recovers by 9.35% and closes at 26.20. It is easy to understand that nervousness is trying to return, the first test of the week (ECB) is quite unsuccessful and today is US CPI Day, a very important consumer price index will be published at 14:30. from Geneva. Economists forecast growth of 8.3% year on year in May, which will mean stagnation compared to April. In any case, all eyes of the financial world will be focused on this important statistic today.

The CAC40 surpassed other major European indices during Emmanuel Macron’s presidency, but the turmoil in the parliamentary elections could hurt sentiment. According to Alexander Barades of IG France, the high rating of the left-wing alliance led by Jean-Luc Melanchon is likely to lead to a negative reaction to the stock prices of banks and luxury securities. “All sectors that will suffer from the increase in taxes with the far left risk becoming a target,” he added.

Therefore, inflation in the US in May will be published at 14:30. The University of Michigan Consumer Sentiment Index is scheduled for 4 p.m. This morning, China reported May inflation of 2.1%, slightly lower than expected. Chinese producer prices tend to be lower than expected (+ 6.4%) than in April (+ 8%).

ABB: Citigroup remains a buyer whose goal is reduced from 40 to 35 francs. Aryzta: Kepler Cheuvreux goes from relief to preservation, aiming for 1.10 francs. CRH: Berenberg remains on the shopping side, the price has been reduced from 56 to 46 euros. Holcim: Berenberg remains short, the price is reduced from 43 to 42 francs. Saint-Gobain: Berenberg remains to be held in order to reduce from 62 to 60 euros. Swisscom: UBS is moving from neutral to sales, aiming for 500 francs. State Street has officially denied its interest in Credit Suisse. Apollo is believed to be one of the potential contenders for Grubhub Just Eat. Ferrari plans to expand its Italian electric car plant.

Following the closure of Wall Street, AMD announces optimistic sales forecasts and expects market share to increase. Advanced Micro Devices, the second-largest maker of computer processors, expects profits to grow 20 percent annually over the next three to four years as it seeks to capture more of Intel’s market share. Revenue will grow faster than the chip market, CEO Lisa Su said at a meeting with investors. And the gross margin will increase to 57%, she announces. It is always interesting to know how the main players in the semiconductor industry are doing, AMD is gaining 1.2% in the secondary market.

Tonight and this morning in Asia indices are trading in the red, except in Hong Kong and Shanghai, which rose 0.05% and 1.40%. Tokyo fell 1.49% and Seoul lost 1.13%. Futures on the SPX traded slightly higher, and Europe opened 0.9%.

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