• News
  • Sport
  • TV
  • Radio
  • Education
  • TV Licences
  • Contact Us

For all official information and updates regarding COVID-19, visit the South African Department of Health's website at www.sacoronavirus.co.za

No Result
View All Result
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • SCI-TECH
  • LIFESTYLE
  • FEATURES
  • OPINION
Home Business

Shares churn, close down; yields fall after US inflation data

12 May 2022, 12:00 AM  |
Reuters Reuters |  @SABCNews
US equity had indexes churned higher and lower during the session as investors picked through US inflation data for clues about the Federal Reserve's rate hiking path.

US equity had indexes churned higher and lower during the session as investors picked through US inflation data for clues about the Federal Reserve's rate hiking path.

Image: Reuters

US equity had indexes churned higher and lower during the session as investors picked through US inflation data for clues about the Federal Reserve's rate hiking path.

Wall Street stocks closed sharply lower and Treasury yields fell in Wednesday’s volatile session as oil prices rallied and investors worried about the potential for an economic slowdown.

US equity had indexes churned higher and lower during the session as investors picked through US inflation data for clues about the Federal Reserve’s rate hiking path.

US data showed higher-than-expected core inflation, excluding items such as oil prices.

Some investors appeared encouraged by the annual consumer price growth change to 8.3% in April from 8.5% in March even though it was above the 8.1% analyst estimate.

While some investors were encouraged by the year-over-year improvement, others noted inflation was still red hot and that this was highlighted by oil futures rally. “This is all about concern about a recession.

The inflation numbers we got this morning were not good, worse than expectations … There’s high food prices and increasing concern inflation numbers are going to be sticky on the high side,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder.

The strategist also pointed to a flattening yield curve, referring the difference between long-term and short term Treasury yields as an ominous sign.

“We’ve a very flat yield curve that’s been flirting with inversion. That scares traders about the prospects for a recession. There’s too many investors out there who believe the Fed can engineer a soft landing. That looks increasingly doubtful.”

The Dow Jones Industrial Average fell 326.63 points, or 1.02%, to 31,834.11, the S&P 500 lost 65.87 points, or 1.65%, to 3,935.18 and the Nasdaq Composite dropped 373.44 points, or 3.18%, to 11,364.24.

The S&P closed at its lowest level since March 25 2021 and 18% below its January 3 record finish.

Nasdaq lagged its peers sharply as interest rate-sensitive growth sectors, technology and consumer discretionary, underperformed the rest of the market also closing down more than 3%.

MSCI’s gauge of stocks across the globe shed 0.88%, registering its lowest close since November 2020.

Earlier, Jim Paulsen, chief investment strategist at The Leuthold Group in Minneapolis was taking the glass-half-full view pointing out that inflation, while still high, appeared to be starting to moderate.

“At the end of the day we can get all excited about whether it’s a little higher or a little lower but clearly the year-on-year inflation rate rolled over and looks like it peaked in March. It seems to have turned the corner,” he said.

The US dollar gained ground initially after the inflation news then fell but rose a bit in late trading.

The dollar index, which measures the greenback against a basket of major currencies, was 0.067%, with the euro down 0.13% to $1.0513.

The Japanese yen strengthened 0.35% versus the greenback at 129.97 per dollar, while Sterling was last trading at $1.2245, down 0.62% on the day. In early trade, benchmark 10-year Treasury yields had fallen to their lowest levels in a week.

But after the inflation data, yields marched back up toward the three-year high of 3.203% hit on Monday before falling again.

Benchmark 10-year notes were last rising 20/32 in price to yield 2.9148%, from 2.993% late on Monday.

The 30-year bond last rose 57/32 in price to yield 3.026%, from 3.129% while the 2-year note last fell 1/32 in price to yield 2.6371%, from 2.623%.

“The volatility of all the markets is really something, the whiplash aspect of the day,” said Lou Brien, market strategist at DRW Trading. “You’re seeing a bit of a flight to safety and maybe the idea that even with the CPI today that we’re going tore-flatten the curve.”

Oil prices rose on Wednesday after flows of Russian gas to Europe fell and Russia sanctioned some European gas companies, adding to uncertainty in world energy markets.

US crude oil futures settled at $105.71 per barrel, up $5.95 or 5.96% while Brent crude futures settle at $107.51/barrel up $5.05 or 4.93%.

Spot gold added 0.8% to $1,852.79 an ounce.

Share article
Previous Post

US calls out Russia, China opposition to UN action on N.Korea

Next Post

Messi tops Forbes’ highest-paid athletes list

Related Posts

South African money

CPI for April at 5.9 percent, unchanged from previous month

18 May 2022, 10:55 AM
Customers are seen withdrawing money from FNB and Nedbank ATMs.  [File image]

Middle income households survive on 20 percent of their salary: Study

18 May 2022, 7:08 AM
The European common currency touched $1.0563 in early Asia trade, after rising 1.1% overnight, its largest day of percentage gains since March.

Euro and sterling helped by improved market sentiment

18 May 2022, 4:09 AM
Russia has so far managed to make its international bond payments despite Western sanctions, which have complicated the process of paying.

US considering move to block Russian debt payments – Treasury

18 May 2022, 3:48 AM
Police walk past a looted shop during the 2021 July unrest in Durban.

Office of Ombudsman for short and long-term insurance receives highest number of disputes in history

17 May 2022, 4:48 PM
A gasoline pump seen at the petrol station.

AA predicts a significant increase in fuel prices for June

17 May 2022, 4:16 PM
Next Post
Lionel Messi arrives at the Royal Monceau Hotel in Paris, France.

Messi tops Forbes' highest-paid athletes list

Most Viewed

  • 24hrs
  • Week
  • Month
  • EMS says fire at Bree Street Taxi Rank in Johannesburg has been extinguished
  • The public has until 18 May to make submissions on Icasa’s regulations for extension of expiry period for data, airtime
  • ANC NEC expected to hold a special meeting on Sunday
  • Eastern Cape flood victims plead for support as access to food, services remains difficult
  • Amathole Regional Secretary elated to have corruption charges against him dropped
  • SA may be home to world’s oldest person
  • [WARNING: GRAPHIC CONTENT] Nigerian student beaten, burned to death over ‘blasphemous’ text messages
  • Cape Town’s Noise Nuisances by-law back in the spotlight
  • Stellenbosch University suspends white student for urinating on black student’s laptop
  • Several stalls set alight at Pan Africa Mall in Alexandra
  • SA may be home to world’s oldest person
  • Decrease in petrol price but diesel expected to increase between 70 and 80 cents
  • University of Mpumalanga opens a hotel within its Mbombela Campus
  • Some R350 grant beneficiaries have not yet received April payments
  • Cosatu’s May Day celebrations descended into chaos, proceedings halted

LATEST

A general view during the fourth one-day international cricket match between England and India at Lord's cricket ground in London September 11, 2011.
  • Sport

Lord’s cricket ground to turn red, white and blue for Queen’s Platinum Jubilee


The Oasis band member Noel Gallagher's Gibson ES-355 guitar, destroyed during an argument with his brother at Paris' Rock en Seine festival in 2009, is displayed during a media preview at Hotel Drouot ahead of the auction in Paris, France, May 13, 2022.
  • Lifestyle

Gibson guitar smashed on night rock band Oasis split sold at auction


The dating app Tinder is shown on a mobile phone.
  • South Africa

SA ‘Tinder Swindler’ court case postponed


ER1 handing over a priority one patient to the Netcare Milpark Hospital in Johannesburg’s accredited Level One Trauma Centre.
  • Politics

Former Joburg mayor Moerane remains unconscious: Family


A smoker lights up a cigarette in a public place.
  • Sci-tech

Global smoking rates fall for first time, but rise for kids, Africa


A customer looks over a 9mm hand gun at the Guns-R-Us gun shop in Phoenix.
  • South Africa

One killed, six wounded in alleged Eastern Cape taxi boss hit


Weather

  • About the SABC
  • Contact Us
  • Jobs
  • Advertise
  • Disclaimer
  • Site Map

SABC © 2022

No Result
View All Result
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • SCI-TECH
  • LIFESTYLE
  • FEATURES
  • OPINION

© 2022

Previous US calls out Russia, China opposition to UN action on N.Korea
Next Messi tops Forbes’ highest-paid athletes list