Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Sentiment Is Better, News Is Not

By Swissquote Ltd (Ipek Ozkardeskaya)Market OverviewJun 24, 2022 10:22
uk.investing.com/analysis/sentiment-is-better-news-is-not-200524105
Sentiment Is Better, News Is Not
By Swissquote Ltd (Ipek Ozkardeskaya)   |  Jun 24, 2022 10:22
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The market sentiment is better, but the news is not. The latest flash PMI readings from Japan to Europe, and the US, showed a slowing global activity in June. Almost all regions missed analyst expectations. High energy prices, the Ukraine war, pandemic disruptions, tighter monetary policies, and rising borrowing costs are weighing on the global economic activity, and we now start seeing it through the PMI figures.  

The slowing activity and the major call for a global recession started pressuring oil and commodity prices to the downside. The barrel of US crude trades a touch above $106pb at the time of writing. Oil bears get ready to test the $100pb support for a deeper medium-term correction, and the iShares diversified commodity index is down by 12% since the June 8 peak.  

Tightening tightening tightening… 

Norway delivered a bigger than expected 50bp hike, and Banxico posted a 75bp hike, the country’s biggest rate hike ever, and said it will continue doing so if conditions require.  

Only the eccentric Turkey kept its policy rate at 14%.  

From bad to worse 

Moscow cuts the gas supply to Germany via Nord Stream 1, leading to another spike in the European natural gas futures. Germany warned that cutting Germany’s energy supplies would spark a collapse in energy markets, comparing itself to Lehman Brothers which fell and triggered the terrible subprime crisis back in 2007/2008.  

The higher gas prices should keep the pressure high for oil, as although the prospects of demand are being cut, the production remains limited to the refining capacity. 

A calm session ahead? 

European and US futures hint at a hopefully calm session before the weekly closing bell. We don’t have much on today’s economic calendar besides the University of Michigan’s sentiment index, which we know will look morose. But other than that, we will probably wrap up the week with Powell’s warning that the US economy will certainly not have a soft landing as a result of the Federal Reserve’s (Fed) aggressive fight against inflation.  

In FX, the US dollar hasn’t recorded a fresh high in about ten days, and the prospects of slowing US growth, the rising probability of recession, and the increasingly hawkish policy stance from other major central banks should prevent the greenback from gaining a fresh positive momentum.

 
 
Sentiment Is Better, News Is Not
 

Related Articles

Ipek Ozkardeskaya
Inflation Expectations Soften By Ipek Ozkardeskaya - Aug 09, 2022

Stock markets kicked off the week mixed, the European markets were up yesterday, while NVIDIA (NASDAQ:NVDA) plummeted the mood in the US, sending Nasdaq slightly lower. NVIDIA...

Sentiment Is Better, News Is Not

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Dweeptaru Das
Dweeptaru Das Jun 24, 2022 11:15
Saved. See Saved Items.
This comment has already been saved in your Saved Items
so how would S&P fare next week ?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email