English
24
Jun

German Ifo Survey, U.S. New Home Sales, Consumer Sentiment

calendar 24/06/2022 - 07:51 UTC

While the Indian rupee traded this week at a new low against the dollar, Bloomberg quotes an analysis by Bank of America indicating that a further devaluation is possible given the rising price of oil and other raw materials as well as outflows from the equity market.

Major stock market indices in the U.S. continued to push higher by Friday morning while at the same time European markets were at best making some small moves to recover from the losses on Thursday, while the Germany 40 index once again traded lower. Market participants might have been concerned about the weak PMI figures released on Thursday as well as Germany announcing that it would implement its next stage in its gas emergency plan.

Crypto markets were moderately bullish over the past few days with the strong performance of some altcoins like Ripple and Solana helping the push the total crypto market cap closer towards the one trillion-dollar mark. Ripple traded on Friday up by more than ten per cent with the bulk of the upside move occurring around 1 AM GMT. Solana meanwhile trades at a new two weeks high after appreciating by more than 25% over the past seven days.

On Friday in the U.S. data on new home sales in May as well as the University of Michigan Consumer Sentiment survey can be expected.

EUR/USD

For the first time this week the EUR/USD pair was at the end of the day on Thursday lower after rising for three days in a row. While the moderate appreciation of the dollar could have also impacted the exchange rate, the weakness of the euro itself was a significant factor in this move as the common European currency traded on Thursday lower against all other majors.

Market observers were to some extent shocked by the decline in the Purchase Managers’ Index (PMI) for the eurozone and Germany with the manufacturing PMI declining in both regions to 52.0 and the service PMI also dropping from 55.5 to 52.8 in the eurozone, whereas expectations were for only a moderate decline. It should be still noted that a PMI above 50.0 indicates that the expectations are overall more positive rather than negative.

On Friday in Italy data on consumer and business confidence as well as the trade balance will be published, while in Germany the Ifo releases its business climate and expectations report for June.

EUR/USD

Gold

Gold prices dropped to a new low for this week with the precious metal being traded cheaper even against the weakened euro with Gold (EUR) CFD trading around one per cent lower for this week. An even steeper drop occurred in silver markets as the metal was by Friday morning trading around 3.5% compared to the closing levels of last Friday.

As usual on Friday the U.S. CFTC publishes its weekly Commitment of Traders (COT) statistics, which among other data show the net speculative positions in U.S. futures on underlying like gold, silver and copper. At 154 thousand net positions in gold futures, the metric reached a new year-to-date low last week.

Gold

WTI Oil

Oil prices stabilised on Thursday around the $104 per barrel mark for WTI crude oil and thus recovering from the low seen on Wednesday.

The expected weekly data release by the Energy Information Administration (EIA) scheduled for Thursday was for now postponed with the organisation informing the public of system issues causing delay with all reports except the “Weekly Natural Gas Storage Report” affected.

On Friday the U.S. Baker Hughes Oil Rig Count will be published. The metric has been recently again improving at a moderate pace, indicating that activity reached a new high since the start of the pandemic in March 2020.

WTI Oil

US 500

As major stock market indices traded higher on Thursday and extended to the upside on Friday, with the US 500 trading by Friday morning up by around one per cent, it seems like for once equities are set to close higher week after suffering continuously losses over the past three weeks. The US Tech 100 index managed to make a very strong recovery this week, trading by Friday morning close to the levels of two weeks ago and thus recovering practically all losses from the past week.

While Tesla traded fairly stable over the past two days, its competitor Lucid Motors (+7.16%) continued to make significant gains and recovered most of the losses of this month, trading up by more than 16% since the start of this week.

Energy sector stocks (US Energy ETF -3.97%) were once again under pressure with Schlumberger (-7.06%) and Halliburton (-6.81%) underperforming this week as both stocks reached new lows since January.

FedEx traded up by more than two per cent in the extended trading session after the company’s earnings revealed a positive guidance for the full FY while adjusted earnings per share at $6.87 were pretty much in line with what investors expected according to CNBC quoting Refinitiv data.

On Friday Carnival Corp. is set to release its quarterly earnings data.

US 500

The materials contained on this document should not in any way be construed, either explicitly or implicitly, directly or indirectly, as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument, in any manner whatsoever. Any indication of past performance or simulated past performance included in this document is not a reliable indicator of future results. For the full disclaimer click here.