Trading Review: Ongoing Reports, Trends, Indices, Stocks, Bonds, Forex and Commodities and Analyst Recommendations

12:30

Trading in Europe continues to decline sharply from 2% to 2.5% on major stock exchanges, with Wall Street contracts plummeting against the backdrop. Nasdaq contracts are down 2.7% and the S & P500 is down 2.2%. At the same time, US bond yields are soaring again. The 10-year bond yield rises by 5 points to 3.44 (when it reached a low intraday level of 3.30%) and the two-year bond yield soars by 11 points to 3.39%.

In Germany, there are sharp declines in shares E ON , Zelando And BASF, Deutsche Bank Retreated 0.1%. In London the oil giant BP Loses 3.5% and the IAG aviation group is also declining at a similar rate. Banks and investment houses are also trading in the negative territory ahead of the Bank of England’s interest rate decision today.

Early trading on Wall Street saw 2% to 4% declines in major technology stocks, including Apple, Tesla, Anvidia, Amazon, Microsoft, Meta and Google.

11:10

The Hong Kong Hong Kong index closed down sharply 2.2%, with declines of 4% -5% recorded in most major energy stocks and technology companies pulling down. Shiomi fell more than 4% and Alibaba dropped at a slightly lower rate than that.

In crypto, bitcoin traded up 7% compared to yesterday for $ 21.6 thousand. It is still down 28% in a week and almost 70% compared to the peak it recorded last November, when it reached about $ 69,000.

10:50

Wall Street futures continue to fall and declines only worsen: Nasdaq contracts are down 2.5% and S & P500 contracts are down 2%.

In Europe, declines intensified to 1.5% to 2%. At 14:00 (Israel time), the interest rate decision will be published in England, after inflation in the kingdom reached 9% in April. Meanwhile, the pottery shed in London about 1.5%. The Bank of England is expected to raise interest rates by 25 basis points for the fifth time in a row, with some economists in the market estimating that Governor Andrew Bailey will opt for a sharper 50-point interest rate hike, which will set the interest rate up to 1.5%.

Meanwhile, the National Bank of Switzerland has raised its interest rate for the first time in 15 years to fight inflation. The bank raised the interest rate from minus 0.75% to minus 0.25%, its first increase since September 2007.

10:10

Like the local stock market, European markets are not benefiting from the sharp rises recorded last night on Wall Street – and the continent’s leading stock indices are losing ground. Dax and Potsy retreat by 0.4%, French Kak by 0.3% and Euro Stokes 50 pan-European by 0.5%.

In the background, a sharp change of direction in the trading arena in contracts on Wall Street indices. Futures on the Nasdaq are already signaling a decline of 1.3%, contracts on the S & P500 are weakening by 1% and on the Dow by 0.7%.

At the same time, the declines in the bond market are weakening. The 10-year bond yield is around 3.33%, and the annual bond yield is stable around 3.27%.

In Asia, the Hang Seng index is down 1.7%, after the Shanghai Stock Exchange closed down 0.6% and in Shenzhen the index ended similarly to the opening level.

09:20

The Nikkei index in Tokyo closed up 0.4% led by various auto stocks. The Japanese softbank corporation closed down slightly, Mitsubishi Financial Bank rose by about 0.8%.

Meanwhile, the decline in Hong Kong deepened to 1.4% and the Shanghai Stock Exchange also moved into negative territory with a decline of 0.5%. In Shenzhen the index is still climbing, and the South Korean Kospi index is still green but the rise has been reduced to 0.2%.

New York futures have changed direction and moved to red, falling 0.3% -0.5%.

07:55

Asian markets are trading in a mixed upward trend. The Japanese Nikkei is up 1.1% while Hong Kong’s Hong Kong is down 0.6%. In China, the South Korean index, Taiwan, India and Indonesia have green screens, and in Australia there is also a slight increase, although the unemployment rate exceeded the forecast and reached 3.9%.

The declines in Hong Kong are being led by energy companies, following a drop in crude oil prices yesterday. Petrochina, China Petroleum and CNOOC are all losing altitude. Technology stocks are also down, with Alibaba trading slightly higher. In Tokyo, car manufacturers stand out, Mitsubishi jumps 4%, Toyota 3.1% and Nissan 2.7%.

Future mornings on Wall Street are trading up 0.3% this morning. Last night, at the end of a two-day meeting, members of the Fed’s Open Market Committee (FOMC) decided to raise the US interest rate by 0.75% – the highest rate of increase is close to 30 years. 3.4% (compared to a previous forecast of 1.5%), and by 2023 the Fed expects interest rates to rise to 3.8%.

● Is it possible to lower inflation without a recession? Powell no longer really commits to it Commentary, Uri Pasovsky
● Aggressive interest rate hike implies that the recession is around the corner – and for the markets this is not necessarily bad news | Commentary, Guy Ben Simon
● Inflation figures in Israel are encouraging, but the real drama is in the United States in general | Commentary, Dror Marmor

Investors have expressed confidence in the Fed’s policy and jumped the indices. The Nasdaq jumped 2.5%, the S & P500 rose 1.5% and the Dow Jones rose 1%. At the same time, US government bond yields fell sharply. The bond yield for the decade was cut by 17 points and dropped to 3.31%, the bond yield for two years fell by 21 basis points to 3.22%.

The crypto market, which has experienced sharp declines since the weekend, has seen a slight recovery. Bitcoin is up 5% and is trading around $ 22.2 thousand and etherium is up 7% to $ 1,216. In the commodity market crude oil prices are stable, Brent is trading at 119 Dollars per barrel.

Guy Beit-Or, the chief economist at Psagot Investment House, said in response to the interest rate decision that “the textual updates of the forecast were hawkish as expected now that Fed members are ‘very committed to returning inflation to target’. 3.7% at the end of 2022 and 4.1% at the end of 2023. In addition, the growth forecast was significantly updated down to only 1.7% in 2022 compared to 2.8% in the previous forecast in March. “After the retail sales data that came out earlier today, the Fed’s growth model for the second quarter was updated down from 0.9% to 0.0%,” Beit-Or explained.

Peaks estimate that the U.S. recession is much closer than expected, “and the dramatic downward update of growth forecasts is a very strong signal for that. Through large short-term interest rate hikes and a signal to the markets that the economy is going to slow down significantly in the Fed lines first of all to lower inflation expectations significantly. In our estimation, we are still right for another 75-point increase and then beyond 50-point increases. We do not estimate from today that the cycle of interest rate hikes will end towards the end of the year and it seems that Fed members are increasingly leaning in this direction – in the latest forecasts they are signaling an interest rate hike of only another 40 nb in 2023 “.