5/27/2021 10:57:28 AM GMT
Overview: Dollar demand linked to the month-end gave the greenback a bit of a reprieve, helped by firmer bond yields. Some momentum players may have been forced out of the euro and yen when the $1.22 and JPY109 levels yielded. However, follow-through dollar buying has been limited, and it has come back a little softer but broadly so. The US 10-year yield has steadied after the 1.55% level held for the second session, though the upside has been limited to a few basis points. European benchmark yields are narrowly mixed after the recent declines, encouraged ostensibly by the doves pushing back against a slowing of ECB bond purchases next month. Asia Pacific equities were mixed. Japan, South Korea, Hong Kong, and Taiwan markets eased, while China, Australia, and India rose. The Nikkei fell for the first time in six sessions, led by chemical companies and banks, amid concern that the formal emergency will be extended for a few more weeks in at least Tokyo and O
MSCI s Index Rebalance Review
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Senators Urge Biden to Reverse Disastrous Decision to Give COVID-19 Medical Tech and Intellectual Property to China
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Stocks snap losing streak, PPI Surges, et tu, Elon?
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US PPI rises, jobless claims fall
Wall Street can’t get inflation out of its head. The day after consumer prices delivered the largest 12-month increase since the summer of 2008, saw another hot pricing pressure-filled report that showed the largest annual increase since the BLS began tracking data in 2010. Weekly jobless claims also fell to a fresh pandemic low, which should provide some optimism that the labor market recovery has not completely stalled due to a shortage of available workers.
Surging producer prices often lead to higher consumer prices so today’s hot print should have provided another mover higher in Treasury yields, but it did not. US stocks are rising today because the bloodbath with technology stocks had to stop. Despite inflationary fears, US stocks are still where everyone wants to be and that is why the algos bought the S&P 500 index after the three-day slide knock