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CPI

Stocks Gain, Bitcoin Struggles at $21K Amid Key CPI Data

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Key Events This Week

  • US CPI
  • UK jobless claims
  • Eurozone GDP
  • New York Fed President John Williams keynote speech
  • Japan’s new BOJ governor nomination
  • US retail sales
  • UK CPI
  • US jobless claims
  • Australia unemployment
  • Cleveland Fed President Loretta Mester speaks at event
  • France CPI
  • Russia GDP

Movers

  • Stock futures for the S&P 500 and Dow Jones Industrial Average rose, while the MSCI World index fell for the third straight day. 
  • The Bloomberg Dollar Spot Index and Japanese yen fell, while the euro and British pound surged. 
  • Bitcoin and Ether fell, while the yield on 10-year Treasuries declined and Germany and Britain’s 10-year yields were little changed. 
  • West Texas Intermediate crude fell, as did gold futures.

US CPI Data release among important happenings to keep an eye on this week

Wall Street saw an uplifting day as stocks soared across the board, following indications that American’s expectations of household incomes dropping could lead to positive economic news on Tuesday.

With every sector but energy in green and tech-heavy Nasdaq 100 jumping 1.6%, even the Dow Jones Industrial Average gained more than it has since January!

These promising signs were all thanks to a New York Federal Reserve survey which found little change in one-year inflation expectations–signalling “modest reassurance”.

Best part?

This is after we learned households may experience their biggest income drop ever; however investors are no doubt hoping for brighter days ahead!

Crude oil prices dropped below $80 a barrel last week after the Biden administration announced it would be increasing sale from its reserves.

To counter inflation, traders took to two-year Treasury yields and pushed them up significantly in response to positive jobs data.

It’s estimated that by July this year, Fed rates will peak at 5.2%, far exceeding previous estimates of just under 5%.

With more key economic numbers on their way this week, markets are sure to keep an eye out for potential surprises!

Despite some serious warnings from top investment strategists, equity indexes still had a great Monday! Experts urge investors should transition to bonds as the market wasn’t expecting an imminent recession.

But analysts are of the opinion that US stocks were soaring too high and in need of correction after pricing in Federal rate hikes. Looks like we’ll have to wait and see what comes next!

Europe is feeling confident as the Stoxx 600 index surged thanks to some thriving industries. However, in India inflation has skyrocketed beyond its central bank’s target for the first time since last March. 

Elsewhere, a little drama unfolded with Japan’s yen weakening past 132 per dollar following news of Kazuo Ueda becoming next BOJ Governor on Tuesday (announcement coming soon!). And finally but certainly not least – what happened over Michigan? 

Turns out US officials tracked an unidentified object before it was shot down by the Pentagon!

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Bitcoin Struggles

After a thrilling start to 2021, the crypto market is currently taking a pause with Bitcoin trading in the red this morning.

Ethereum has also seen some downturn over the last 24 hours and fear & greed index remains neutral – all signs of uncertainty ahead for what’s next! 

That said, it looks like overall market cap above $1 trillion will be maintained despite these developments so far.

It’ll certainly be interesting to see where things go from here in terms of cryptocurrency performance!

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Author

  • Phyllis Wangui

    Phyllis Wangui is a Financial Analyst and News Editor with qualifications in accounting and economics. She has over 20 years of banking and accounting experience, during which she has gained extensive knowledge of the forex, stock news, stock market, forex analysis, cryptos and foreign exchange industries. Phyllis is an avid commentator on these topics and loves to share her insights with others through financial publications and social media platforms.

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