Hey Folks, we had a strong week for the markets against a prior week of disappointment. Now what? Get me take below in this week’s round-up.
WEEKLY SOUND BITES:
- Stocks rebounded from the previous week’s declines, bringing the S&P and NASDAQ to new highs, and helping both record their best weekly gains since early April… Moderating inflation fears may have factored in helping reverse the previous week’s drop. Some signs emerged that supply chain pressures that had caused a spike in commodity prices were easing. Lumber prices continued a sharp decline from record highs, and metal prices came under pressure as China released stockpiles to cool the market… Fed Chair “Boom Boom” Powell’s testimony to Congress restated that the recent spike in inflation will prove temporary reassured investors while economically sensitive securities got a boost from news of an agreement on a bipartisan infrastructure deal…
- Durable goods orders rose less than expected in May, with many analysts pointing to supply chain issues, while weekly jobless claims came in higher than expected, at 411,000. New home sales fell 5.9% in May, and previous months’ sales were revised lower while June manufacturing activity beat expectations and climbed to a record 62.6…Conversely, the firm’s services gauge came in much lower than anticipated (64.8)—if off another all-time high of 70.4 in May and finally, personal spending was flat in May…
- Inflation fears seemed to resurface late in the week with the yield on the US 10-year Treasury jumping Friday morning following a report that the Fed’s preferred inflation gauge—the core (less food and energy) personal consumption expenditures index—had risen 0.5% in May, bringing the year-on-year increase to its fastest pace (3.4%) since 2008…
- European shares rose in volatile trading, buoyed by a reaffirmation of ultra-loose monetary policy and a bipartisan agreement on a huge U.S. infrastructure spending plan… ECB President Christine “Queen Bee” Lagarde told a European Parliament committee it was important “not to withdraw support too early.” A survey of purchasing managers showed that an index of eurozone output rose to 59.1 in June, the fastest pace of growth in 15 years, versus 57.1 in May, as the economy continued to reopen and the services sector posted further strong expansion… BoE policymakers voted unanimously to keep the key interest rate at 0.1% and by eight to one to maintain the asset purchase program until the end of the year.
- China’s large-cap CSI-300 Index added 2.7% and the Shanghai Composite Index rose 2.3%, ending a three-week losing streak… Financial stocks led the rally after the People’s Bank of China (PBoC) injected liquidity into the financial system for the first time since February…
Weekly Round-Up;
Don’t Be A Rat Brain Trader – Be the Red Stripe Zebra !!
Trade Smart !
hpb
