English (India)
10
Aug

CPI Data, U.S. Wholesale Trade, Walt Disney Earnings

calendar 10/08/2022 - 08:49 UTC

Gold prices continued to improve though at a slower pace compared to Monday, still the upside move was enough to push the price of the precious metal towards a new one month high. At the same time silver, platinum and palladium ended the day slightly lower.

Cryptos like Bitcoin and Ethereum retraced lower on Tuesday with both unable to hold on to their local high reached at the start of the week when Bitcoin was above $24k and Ethereum traded briefly beyond $1,800.

Major stock market indices like the US 500, Europe 50 as well as Asian markets like the Japan 225 (Yen) and in particular the Chinese markets like the China A50 and Hong Kong 50 came under pressure. These Chinese indices dropped by around 1.5% and more than 2% by Wednesday morning and were trading very close to the lows seen last week.

On Wednesday U.S. data on wholesale trade as well as the Treasury Budget for July will be published.

EUR/USD

The EUR/USD rate continues to improve, trading now mostly above the 1.02-level given the relative weakness of the dollar. This time the euro itself also appeared in a fairly strong position against other majors, trading higher in the EUR/JPY and EUR/GBP pairs, while recovering its losses from Monday in pairs like the EUR/CAD and EUR/AUD.

Fundamentals released in the U.S. in the early afternoon, such as the non-farm productivity and the unit labour costs statistics did not have a significant impact on the currency markets. Unit labour costs for the second quarter continued to show a significant increase now at 10.8% on a quarterly basis, which was a bit higher than anticipated, though less compared to the 12.6% increase seen in Q1.

On Wednesday consumer price index (CPI) data will be published in Germany, Italy and the United States.

EUR/USD

Germany 40

The Germany 40 index traded lower in line with trends seen also in other markets, though earnings results like for example for Continental also might have had an impact.

Continental was one of the weakest-performing shares in the DAX, falling by around six per cent following the disappointing quarterly results. While the company managed to improve its revenue compared to the second quarter of 2021, earnings declined with the adjusted EBIT falling by 19.8% compared to the same quarter of the previous year, while adjusted EBIT margins declined from 6.2% to 4.4%. Net income was negative at -€251 million in part also due to the €75 impairment charge the company had to take for its business activities in Russia.

Germany 40

WTI Oil

After oil prices initially headed for the second day this week higher a strong reversal undid most of these gains in the afternoon hours, pushing the price of a barrel of WTI crude oil again towards the $90-mark. After stabilising, prices were moving gradually lower in the evening with the weekly statistical bulletin release by the American Petroleum Institute (API) not having a significant impact on the market. In its report the API indicated a drop in crude oil inventories amounting to more than 2.1 million barrels, while distillate stockpiles also showed a build close to 1.4 million barrels. Gasoline inventories declined by 0.6 million barrels.

On Wednesday the Energy Information Administration (EIA) publishes its weekly report on crude oil, gasoline and distillates stockpiles. Then on Thursday the OPEC Monthly Oil Market Report as well as the monthly oil statistic from the International Energy Agency will be released.

WTI Oil

US 500

Stock market indices traded overall lower, though there were also some differences among the major markets with the US Tech 100 index shedding more than one per cent on Tuesday and by now undoing most of the gains of the previous week, while the US 30 index given its stronger performance at the start of the week is trading close to unchanged compared to Friday.

Norwegian Cruise Line (-10.46%) was by far the worst-performing component of the S&P 500 index after disclosing its quarterly results. The company disappointed with its weak revenue as well as light guidance of only $1.5 billion to $1.6 billion for Q3 as it hopes to increase the occupancy rates from 65% to 80%. Still, these occupancy rates are well below the pre-pandemic levels when they at times were exceeding a hundred per cent.

Coinbase stocks feel in after hours trading by more than five per cent as the company’s revenue declined by 64% in the past quarter and the crypto exchange company was forced also to reduce its full-year guidance. The loss per share at $4.98 was almost twice as high as many have anticipated. By now the stock value declined to less than a quarter compared to its all-time high in November 2021, when many crypto coins also reached their peaks.

On Wednesday companies including CyberArk, Jumia, Walt Disney and Wix.com are publishing their respective quarterly results. Then on Thursday results from Illumina and Rivian can be expected.

US 500

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