Urgent: An earthquake hits the markets… Everyone falls but one By Investing.com


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Investing.com – A storm of shocking data and gloomy visions for the growth of the US region and the US economy hit the markets on Thursday, with negative repercussions on the markets, with everyone falling into the trap of decline, with one exception.

As usual, the US dollar consolidated to escape the wave of declines that swept everyone, starting with European stocks and Wall Street, passing through gold and oil.

European stock exchanges

All European stock exchanges declined during these moments of trading today, Thursday, led by the FTSE MIB index (LON:), which lost 511 points, or 2.1%.

The German DAX index fell by 1.6 percent, or 230 points, and the French CAC 40 index fell by 1.5 percent, or 100 points.

On the other hand, the English FTSE 100 index declined by 1.2%, or 90 points, IBEX fell by 1.4%, losing 120 points, and the Stoxx 600 fell by 1.2%, losing 5 points.

Wall Street

And the US stock market recorded a wave of collective declines minutes after the beginning of trading today, Thursday, with the lead of the index, which fell 0.2%, equivalent to 70 points.

The index declined in the range of 0.15%, or the equivalent of 5 points, and on the other hand, it removed the index of the list of declines, as its trend tilted towards a slight upward trend.

Drops

On the other hand, safe haven gold fell strongly during these moments, losing about $15 an ounce, or 0.7%, down to levels near $1840 an ounce.

While the dollar’s gains widened, as the president rose against a basket of major currencies in the range of 0.35%, reaching levels near 103 points.

stronger dollar

The dollar’s strong gains came supported by the rise in the yield over the years, which is trading near the 3-year top, above 3.04%.

On the other hand, the dollar is trading near its highest level in 3 weeks in an attempt to test the levels of 105 points that it reached last month when it jumped to its highest level in 20 years.

Europe..a bleak vision

The European Central Bank said it plans to raise rates at its monetary policy meeting in July, lowered its growth forecasts and significantly boosted its inflation estimates. The Board of Governors announced that it intends to raise rates by 25 basis points at its meeting in July, and expects to raise rates again at its September meeting.

According to the statement released after Thursday’s meeting, the bank said that after September and based on the current assessment, the board expects a gradual but sustainable path to further rate increases.

The bank will stop large-scale asset purchases within three weeks, a major step in the face of record inflation and paving the way for the first rate hike in the euro zone in more than a decade.

lower expectations

The bank lowered its growth estimates for the euro area to 2.8% this year and 2.1% in 2023, while it revised its growth estimates up to 2.1% in 2024.

The bank currently expects annual inflation in the euro area to reach 6.8% in 2022 compared to its previous forecast issued in March of 5.1%, and it is now estimated that inflation will reach 3.5% in 2023 and 2.1% in 2024.

The bank said high inflation is a major challenge for all of us, and the board will ensure that inflation returns to its 2% target over the medium term.

Eurozone inflation was 8.1% in May, more than 4 times the official target, putting pressure on households across the continent.

Although initial jobless claims are still near pre-pandemic levels, the noticeable rise in claims, if it continues, may indicate a weak labor market in the coming months, after it rose last week at the largest pace in nearly a year.

The data of the US Department of Labor revealed that the number of initial jobless claims increased by 27 thousand to 229 thousand in the week ending on the fourth of June, compared to the level of the previous week, adjusted by raising by two thousand applications to 202 thousand.

The average number of jobless claims in the past four weeks, which is the most accurate measure of labor market performance, increased by 8 thousand applications from the average of the previous week, revised up by about 500 to 207 thousand to reach at 215,000.

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