20/04/2023
✨ [US Stock Market]
Three major stock indexes are close to a flat close, popular Chinese stocks, star technology stocks weak performance. As of the close, the Dow fell 0.23%, the Nasdaq rose 0.03%, the S&P fell 0.01%. The U.S. 10-year Treasury yield rose 0.447% to close at 3.595%, a -65 basis point spread compared to the two-year Treasury yield. The panic index VIX fell 2.2% and Brent crude oil closed down 2.22%. Spot gold continued to move higher from Nov '22 to date, closing 0.52% lower yesterday at $1994.71/oz. The U.S. dollar index, which has continued to fall from its October '22 high, has rebounded in recent weeks, closing up 0.01% yesterday at 101.96
U.S. EIA Strategic Petroleum Reserve stocks for the week to April 14 recorded the lowest since the week of Oct. 28, 1983; the decline was recorded the largest since the week of Dec. 30, 2022. The Association of German Gas Storage Operators said Germany may not meet its gas storage target for winter 2024. Dutch electricity prices fell into negative territory at one point amid a large supply of clean power.
The EU is ready to provide a 100 million euro aid package for the food market and will start investigating other sensitive products related to the agricultural market situation. The Hungarian government will ban imports of 25 Ukrainian agricultural products. UK CPI exceeded expectations and traders raised their bets on the Bank of England's interest rate peak by 14 basis points to 5%. The Swiss central bank prepares to sell foreign currencies on worries about continued inflation. Unions representing about 155,000 workers in Canada's public sector called for a strike starting Wednesday after it failed to reach a new pay deal with the federal government. Sudan goes on another 24-hour cease-fire; Japan, for its part, prepares to evacuate its citizens, numbering 60.
Citigroup postponed its forecast for the start of the U.S. recession from the third quarter to the fourth quarter. Morgan Stanley's CEO expects the Fed to cut interest rates in 2024. U.S. Republicans, House Speaker McCarthy proposed to raise the debt ceiling by $1.5 trillion or suspend it until the end of March next year, which also includes a series of provisions for spending cuts that are difficult for the White House to accept. U.S. moderates from both parties are worried about the federal debt being dragged into default (as soon as June) in negotiations between the parties and propose a backup plan: suspend the debt ceiling until the end of the year. According to the Fed's Brown Book: overall economic activity has changed little in recent weeks; U.S. job growth is currently slowing, the labor market is tightening, and growth expectations for the economy going forward remain largely unchanged.