Market Overview - Page 25

US drilling activity declines due to low oil prices, with rig count dropping to its lowest level in late 2021. Meanwhile, OPEC plans to increase production, affecting oil prices negatively.

It’s been a wild week in the markets. U.S. stocks are sliding, the dollar’s under pressure, and Bitcoin just hit a new record. What’s behind the chaos?

The US dollar faces increasing risks due to trade wars, credit rating downgrade, fiscal problems, and tariffs threats, leading to a decline in confidence and value.

Strong retail sector data and accelerating consumer inflation in Britain limit room for Bank of England rate cuts. This news boosts the pound, hitting 39-month highs, supported by strong retail sales figures exceeding expectations.

EURUSD is seeing a tactical retreat towards 1.13 after a rapid rise. The 1.12-1.15 area is a key pivot, with a longer-term uptrend targeting 1.20-1.25.

Eurozone PMI data showed a contraction in business activity, with services sector weakening while manufacturing improved. The strengthening euro did not hinder manufacturers.

UK inflation surged unexpectedly, raising concerns about a potential Bank of England rate cut. The rise was driven by increases in housing, household services, and leisure, challenging monetary policy.

Germany's DAX40 and UK's FTSE100 outperform S&P500, showing strength against economists' pessimism. Stimulus measures from Europe and China boost equities, with potential for positive impacts globally.

US markets were not afraid of the downgrade in the country's credit rating by Moody's, as investors quickly recovered from the 1.5% drawdown. Despite positive technical analysis, there are concerns about higher stock valuations and potential market corrections in the future.

Rumours are abundant about Trump demanding that Asia strengthen their currencies, while Europe braces for a trade war backlash.

US producer prices unexpectedly fell 0.5% in April, dampening expectations of a strong upward trend due to tariffs. Despite this, the market outlook for rate cuts decreased, leading to a 2.5% rise in the dollar over a month.

US CPI slowed to 2.3% y/y, slightly below expectations. Core inflation remains at 2.8%, leading to a weaker dollar and lower rate cut expectations.