US stock market: U.S stocks surged yesterday on the back of stronger than expected corporate earnings, but bleak forecasts on global economic growth pushed up bond yields and drove down oil.
The tech-heavy NASDAQ led the way for gains in U.S markets, as many corporations began to report stronger than expected earnings. Those reports helped investors shake off warnings from global forecasters of a slowdown in economic growth, which weighed on other sectors like bonds and oil. Of the 49 companies in the S&P 500 that have reported quarterly earnings as of Tuesday, nearly 80% have topped profit estimates.
Economic Calendar
The surge came even as global economic bodies began to air warnings on economic growth. Both the World Bank and the International Monetary Fund slashed their global economic outlooks for 2022 by nearly a full percentage point, citing turmoil emanating from Russia's invasion of Ukraine and the pitched battle against inflation worldwide.
Dow Jones Industrial Average
The Dow Jones Industrial Average rose 1.45%. The best performers of the session on the Dow Jones Industrial Average were Nike Inc., which rose 4.12% or 5.42 points to trade at 137.05 at the close. Meanwhile, Boeing Co added 3.41% or 6.13 points to end at 185.98 and Walt Disney Company was up 3.23% or 4.13 points to 131.90 in late trade. The worst performers of the session were The Travelers Companies Inc., which fell 4.89% or 9.06 points to trade at 176.16 at the close. Chevron Corp declined 1.18% or 2.06 points to end at 171.83 and Merck & Company Inc. was down 0.33% or 0.28 points to 85.79.
Forex News: Forex analysis
NASDAQ 100
The NASDAQ index climbed 2.15%. The top performers on the NASDAQ were Checkmate Pharmaceuticals Inc. which rose 329.46% to 10.35, Sono Group NV which was up 65.22% to settle at 7.60 and Toughbuilt Industries Inc. which gained 37.01% to close at 0.20. The worst performers were Lyra Therapeutics Inc. which was down 20.92% to 5.48 in late trade, Mawson Infrastructure Group Inc. which lost 18.71% to settle at 4.04, and Arqit Quantum Inc. which was down 16.33% to 10.45 at the close.
Oil price - Crude Oil market, Brent Oil market
Oil prices rebounded today from sharp losses in the previous session as concerns about tighter supplies from Russia and Libya dominated, while industry data showed a drop in U.S crude inventories last week. WTI crude futures contract, which expires today, rose 46 cents, or 0.5%, to $103.02 a barrel. The second-month contract gained 64 cents to $102.69 a barrel.
Forex and Commodities Trading Signals
Global oil prices have been volatile, pulled higher by a tighter supply outlook following sanctions on Russia, the world's second-largest oil exporter and a key European supplier, after its invasion of Ukraine, which Moscow calls a "special operation". However, a softer global economic outlook and ongoing COVID-19 lockdowns in China that have hurt demand in the world's top crude importer are weighing on prices.
On the supply side, the OPEC and its allies, known as OPEC+, produced 1.45 million barrels per day (bpd) below its production targets in March, as Russian output began to decline following sanctions imposed by the West.
Precious and Base Metals - Gold price, Silver price, Palladium price
Gold prices eased today, following a sharp drop in the previous session, as elevated U.S Treasury yields continued to pull investors away from zero-yield bullion. Spot gold was down 0.2% at $1,946.04 per ounce. U.S gold futures fell 0.5% to $1,949.50. In the previous session, gold prices fell up to 1.8% to an over one-week low as a stronger U.S. dollar and rising Treasury yields overshadowed safe-haven inflows into bullion.
Crypto Trading Signals
U.S. Treasury yields continued to surge to multi-year highs as investors prepared for the Federal Reserve to aggressively raise rates as the central bank tries to stem soaring inflation. Gold is highly sensitive to rising U.S. interest rates and higher yields, which increase the opportunity cost of holding non-yielding bullion.
The dollar held near recent highs, making the greenback-priced gold less attractive for other currency holders. The International Monetary Fund on Tuesday slashed its forecast for global economic growth by nearly a full percentage point, citing Russia's war in Ukraine, and warned that inflation was now a "clear and present danger" for many countries.
Major central banks, already plotting interest rate hikes in a fight against inflation, are also preparing a common pullback from key financial markets in the first-ever round of global "quantitative tightening" expected to restrict credit and add stress to an already-slowing world economy. Spot silver dipped 0.5% to $25.04 per ounce, platinum eased 1.1% to $979.74, and palladium edged down 0.1% to $2,369.36.
Crypto Crusher
Copper prices rose to their highest in two weeks yesterday, buoyed by hopes that more economic stimulus from China would boost demand from the world’s top consumer of the metal. China, which accounts for about half of global metals demand, will step up financial support for industries, companies, and people affected by COVID-19 outbreaks, the central bank said on Monday in its latest move to cushion the economic slowdown.
Traditional Agricultures - Corn futures, Wheat futures, Soybean futures
Corn was largely unchanged today in the Asian trading session and near a decade-high scale in the previous session, as traders fretted over planting delays in the United States and a lack of supplies from war-torn Ukraine. Soybeans and wheat inched higher earlier in today’s session.
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