August 11, 2022

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US Markets – Opened Higher, Nasdaq Up +0.9%

A positive start on Wall Street, with traders wanting to take stock of rising US-China tensions and lingering concerns about a slowdown in the economy. After a few minutes of trading, the Nasdaq is up 0.9%, the S&P 500 is up 0.6% and the Dow is up 0.5%.

US House of Representatives Speaker Nancy Pelosi has left Taiwan after a visit that infuriated Beijing, which threatened to respond by announcing missile tests and military exercises.




While, on the one hand, fears of escalating tensions between the two countries seem to have subsided, on the other hand, investors still face risks to the global economy linked to inflation and the response of central banks.

Restrained comments from some Fed members, who stressed the need for further rate hikes, even with the threat of a recession, made market sentiment worrying.

Mary Daly (Fed of San Francisco) said there is a long way to go to achieve price stability, while Loretta Mester (Fed of Cleveland) called for “very convincing evidence” of slowing monthly inflation growth.

Finally, James Bullard (St. Louis Fed) said in an interview that there must be clear signs of lower rates before the Fed thinks it has “done enough”.

Meanwhile, in Forex, the EUR/USD exchange rate remained at 1.017 while the USD/JPY rose to 133.6, pending the release of July data on the US labor market on Friday.

Among the raw materials, crude oil prices rose slightly with Brent (+0.2%) at $100.7 and West Texas Intermediate (+0.3%) at $94.6, after OPEC + agreed at today’s meeting to increase 100,000 barrels per day in production. Starting in September.

Finally, in the US bond sector, the US 10-year yield rose by about four basis points to 2.79% and the two-year yield by about six basis points to 3.11%.

source MarketInsight

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