Home Tools Market Update – June 10 – Stocks Tank & Yields Rise ahead...

Market Update – June 10 – Stocks Tank & Yields Rise ahead of US CPI


USD moved higher (USDIndex 103.10), Stocks TANKED into close (NASDAQ -2.75%, Dow -600 pts & S&P close to -100 pts) Futures steady. ECB  cut growth and raised inflation forecasts, confirmed end of PEPP and 25bp rate hike in July (some wanted 50bp) & 25bp in Sept. (the caution weighed on EUR). Yields rallied (US 5yr & 10yr back over 3.00%, 2yr at 2.84%), Asian markets have mostly slipped, (Nikkei -1.49%). Yellen inflation a serious problem “what I am focused on”. Goldmans & Deutsche now expect 2 x 50bp hikes from ECB in Sept & Oct and RTS poll sees the same from FED (bring it to 4 x 50bp hikes). Oil slips but holds on to gains, Gold remains pressured by rising yields. NZD bid overnight.

  • USDIndex rallied to 103.33 apost ECB and ahead of US CPI today.
  • EquitiesUSA500 -98 (-2.38%) at 4017, US500FUTS at 4025 now. AMZN4% BABA +-8.13%, NFLX -4.96%, APPL -3.60% GOOGL -2%, MRNA -9.76%
  • Yields 10-year yield higher (3.064% at close), trades at  3.055% now.   
  • Oil & Gold had weaker sessions – USOil slipped but holds over $120.00 handle, Gold sank as Yields rallied from over $1855 to $1845 now.   
  • Bitcoin continues to pivot around $30K.
  • FX marketsEURUSD down at  1.0630, from a spike to 1.0770, USDJPY tested 134.50 zone (24-yr high) and holds 134.00, Cable trades down at 1.2500, from 1.2550. 

Overnight PPI in Japan missed (9.1% vs 9.9%) but remains high, China CPI missed (2.1% vs 2.2%) & PPI in line 6.4% & down from 8% last month (Shanghai lockdowns)

Today – US CPI, Canadian Jobs Report, US University of Michigan (Prelim.) & Speech from ECB’s Lagarde.

Biggest FX Mover @ (06:30 GMT) NZDUSD (+0.54%). Moves higher from 0.6380 to  0.6420, as NZD gets a bid in the Asian session. Next key resistance 0.6450. MAs aligning higher, MACD histogram negative but turning higher, RSI 54 & rising,   H1 ATR 0.0011, Daily ATR 0.0068.

Click here to access our Economic Calendar

Stuart Cowell

Head Market Analyst

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Previous articleCrypto: Cryptocurrency selloff extends through the weekend after Friday’s hot inflation reading
Next articleEconomic calendar for the week 13.06.2022 – 19.06.2022