MeritKapital News
US Equities and Futures rise as Bond Selloff subsides
Stocks rose Wednesday and a selloff in sovereign bonds paused, bringing some relief for markets from the concerns about tightening monetary policy that have affected assets negatively this year. An Asia-Pacific share gauge jumped more than 1% to its highest in about two weeks, helped by Japan and a rally in a Hong Kong technology…
Read MoreLagarde pushes back against imminent rate hike
US stocks opened the week on a weak note in a choppy session ahead of the CPI reading later in the week. The NASDAQ shed 0.58% while the S&P was 0.37% lower. The DOW managed to close flat however. Yield on 10Y USTs closed about flat at 1.9159%. ECB President Christine Lagarde said the adjustment…
Read MoreYields up, non-farm payrolls surpise on the upside, China is back
US equities finished mixed with Dow Jones losing 0.1% to 35,090 and S&P 500 increasing 0.5% to 4,501, while Nasdaq rallied 1.6% to 14,098. The markets digested a much stronger-than-expected January employment report that showed that jobs growth trounced the estimates, while unemployment rate has unexpectedly ticked higher. Nonfarm payrolls jumped by 467k jobs month-over-month…
Read MoreDrastic stock swings draw attention to the big Techs
The unprecedented slide in shares of the Facebook parent is hitting low-cost index funds, ETFs and 401(k) favorites. Millions of ordinary investors rode Facebook on the way up, whether they realized it or not. The collapse of Facebook parent Meta Platforms Inc. on Thursday — a record-books $252 billion stunner — places a bright red…
Read MoreEarnings seasons issues: who is next?
After the report, Meta Platforms shares fell 22.9% in aftermarket and pulled shares of other social network operators – Pinterest, Snap and Twitter. Shares of Snap fell more than 18% after the close of trading, Pinterest – almost 10%, Twitter – about 8%. Earlier, PayPal traded down 24.6%, Amazon shares fell more than 3%, the…
Read MoreEURO Inflation at the record highs, US ISM numbers continues to decline
Yesterday, the UST curve hardly moved, with the 2-year rate sliding 1bp to 1.17% and the US 10YT rising 0.61 bp to 1.795%. The yield on the 10-year Bund increased 3bp, ending at 0.03%. The US manufacturing ISM index fell 1.2 points to 57.6, almost estimated. This was the index’s third consecutive monthly fall, although…
Read MoreGhana 2021 budget deficit betters forecast
US stocks rallied to close out a tumultuous month for investors with indices ending down for the month. The NASDAQ rose 3.41% to move out of correction territory while the S&P and the DOW gained 1.89% and 1.17% respectively. Yield on 10Y USTs closed about flat at 1.7767%. Portuguese Prime Minister Antonio Costa won an…
Read MoreEuropean stock futures higher, as un prepares to discuss Ukraine situation
US equities finished higher last week with Dow Jones jumping 1.7%, the S&P 500 increasing 2.4% and the Nasdaq rallying 3.1%. The gains came as sentiment remained unstable amid concerns about implications of a more aggressive Fed tightening campaign. Economic calendar showed Q4 employment costs moderated from Q3 record high pace. Personal Income rose 0.3%…
Read MoreUS economy in 2021: maximum annual growth in 38 years
According to preliminary estimates, the growth rate of the US economy in 4Q GDP was seen to be better than forecasts, amounting to 6.9% q/q (annualized) compared to the expected 5.5% q/q (2.3% in 3q21). Annual rates also increased to 5.5% against 4.9% a quarter earlier. Overall, the economy grew by 5.7% in 2021, the…
Read MoreA FOMC decision with the hawkish tone
On Wednesdaythe FOMC decided to leave the policy rate unchanged, which was in line with expectations albeit with a hawkish rhetoric. The statement resulted in a few significant modifications. The Fed’s monthly volume of QE purchases will behalved: from USD 40bn to USD 20bn in UST, and from USD 20bn to USD 10bn in MBS.…
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