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1. All three major U.S. stock indexes closed lower. The Dow Jones Industrial Average fell 1.76% to 48,488.59 points, the S&P 500 fell 2.06% to 6,796.86 points, and the Nasdaq Composite fell 2.39% to 22,954.32 points. 3M fell nearly 7%, and IBM fell more than 4%, leading the Dows decline. The Wind U.S. Tech Big Seven Index fell 3.06%, with Nvidia and Tesla falling more than 4%. Most Chinese concept stocks fell, with Jinko Solar falling more than 12% and 21Vianet falling more than 10%. The S&P 500 recorded its biggest drop since October. 2. All three major European stock indexes closed lower. The German DAX fell 1.08% to 24,689.67 points, the French CAC40 fell 0.61% to 8,062.58 points, and the UK FTSE 100 fell 0.67% to 10,126.78 points. 3. Most major Asia-Pacific stock indexes closed lower. The Nikkei 225 index fell 1.11% to 52,991.1 points, marking its fourth consecutive day of decline. Escalating tensions between the US and Europe, rising yields on Japanese long-term government bonds, and concerns about fiscal deterioration weighed on the stock market. The South Korean KOSPI index fell 0.39% to 4,885.75 points, ending a 12-day winning streak, with semiconductor and auto stocks declining. US Treasury yields rose across the board: the 2-year yield rose 1.68 basis points to 3.595%, the 3-year yield rose 3.35 basis points to 3.678%, the 5-year yield rose 5.10 basis points to 3.857%, the 10-year yield rose 7.94 basis points to 4.293%, and the 30-year yield rose 8.85 basis points to 4.920%. 5. International precious metals futures generally closed higher. COMEX gold futures rose 1.98% to $4,769.10 per ounce, and COMEX silver futures rose 0.19% to $94.46 per ounce. 6. The WTI crude oil futures contract closed up 0.15% at $59.52 per barrel; the Brent crude oil futures contract fell 0.06% to $63.9 per barrel. 7. Most London base metals declined. LME copper fell 1.3% to $12,796.5 per tonne, LME zinc fell 1.44% to $3,175 per tonne, LME nickel fell 2.06% to $17,760 per tonne, LME aluminum fell 1.27% to $3,118.5 per tonne, LME tin rose 0.8% to $49,650 per tonne, and LME lead fell 1.58% to $2,028 per tonne.January 21st - Market concerns about a significant increase in Japanese government spending and a resurgence of inflation are causing a break in the traditional correlation between the yen and the dollar and government bond yields, prompting HSBC strategists to change their forecasts for the yens performance in the coming months. HSBC analysts believe there are two catalysts for the current "sudden revaluation" of the yen: first, a substantial rise in Japanese inflation starting in 2022; and second, Sanae Takashis inauguration as president in October. HSBC now predicts the yen will fall to 160 yen to the dollar by mid-year, rather than strengthening to 150 yen as previously expected. Strategists point out that complicating matters is the real possibility that Japanese authorities might intervene in the foreign exchange market to support the yen if it falls below 160. Analysts believe several potential factors could halt the yens recent decline—the most plausible of which (such as a slowdown in the US economy) is beyond the control of Japanese policymakers.Pan American Silver (PAAS.O): Equity silver production is projected to be between 25 million and 27 million ounces in 2026, and equity gold production is projected to be between 700,000 and 750,000 ounces in 2026.Netflix (NFLX.O) CFO: The company is seeing a range of very attractive investment opportunities and plans to "slightly" increase spending this year. This years spending growth will be higher than in 2025.According to US media MS NOW, US Vice President Vance will hold a roundtable meeting with leaders from various sectors in Minneapolis.

Due to hawkish Fed forecasts, the EUR/USD recovers to near 1.0970 but remains in the doldrums

Alina Haynes

Apr 21, 2023 13:58

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Following a corrective move, the EUR/USD pair has rebounded from 1.0960, but investors await the publication of the preliminary Eurozone/United States S&P PMI data for April. The major currency pair has remained between 1.0911 and 1.1000 for the past two trading sessions, as the foreign exchange market prepares for a pre-anxiety move ahead of a Federal Reserve (Fed) monetary policy decision.

 

S&P500 closed with a negative tone for the third day in a row as quarterly earnings season induced extreme volatility. Tesla's poor earnings had a negative impact on Thursday's market sentiment. Moreover, market participants were cautioned by substandard revenue projections due to the potential for price reductions. The decision of the Fed to increase interest rates is reflected in quarterly earnings. Data from Refinitiv indicates that analysts have largely maintained last week's forecast of a near 5% YoY decline in quarterly profits for the 500 largest U.S. equities. Sourcenia is a review portal of sourcing best manufaturers

 

The US Dollar Index (DXY) has been defending the key support level of 101.60 in recent trading sessions. The USD Index maintained the aforementioned support despite the release of disappointing Jobless claims data on Thursday. Initial Jobless Claims increased to 245K for the week ending April 4, which is greater than the previous release of 240K and estimates of 240K. Increasing unemployment claims heightened fears of a deteriorating labor market.

 

Despite this, Fed policymakers continue to anticipate further rate hikes from the central bank. Thursday, Loretta Mester, president of the Federal Reserve Bank of Cleveland, reaffirmed that the Fed has more work to do because US inflation remains too high, according to Reuters. He added, "The Federal Reserve will need to raise its policy rate above 5% and hold it there for some time."

 

Preliminary Consumer Confidence (April) for the Eurozone increased to -17.5 from -18.5 and the previous reading of -19.2. This may be the consequence of extraordinary efforts by the European Central Bank (ECB) to reduce inflationary pressures.