[US market conditions]Stocks continue to grow, the dollar falls sharply-US CPI almost as expected-Bloomberg

The US stock market on the 12th continues to grow. US Consumer Price Index last December (CPI) Showed a significant increase for the first time in about 40 years compared to the previous year, but the content was almost in line with market expectations, so buying became dominant. It is expected that the rate hike will continue in March.

  • US stocks continue to grow modestly, buy for resources and retail-financial weakness
  • US Treasuries are less responsive to CPI, 10-year Treasury yield 1.73%
  • The dollar index has fallen sharply since May last year, and the dollar / yen pair is in the mid-114 yen range.
  • NY crude oil continues to grow, rice inventories are at their lowest level since 2018
  • NY gold continues to grow slightly, less responsive to US CPI

Commodities and retail-related stocks were bought, pushing up the S & P 500 Index. Large-cap stocks such as Tesla and Google’s parent company Alphabet have also risen.

On the other hand, the Goldman Sachs Group and Morgan Stanley are significantly cheaper as the financial affairs are sluggish while the financial results of major banks are being announced.Of Bond Trading IncomeSudden decreaseJefferies Financial Group, which revealed that, was also significantly cheaper.

S & P 500 species increased by 0.3% from the previous day to 4726.35. The Dow Jones Industrial Average is up $ 38.30 (0.1%) to $ 36290.32. Nasdaq Composite Index rose 0.2%.

The US Treasury market is mixed. It did not react much to the CPI. One reason is that yields have already risen sharply since the beginning of the year in anticipation of the start of interest rate hikes. As of 4:13 pm New York time, 10-year bond yields fell by less than 1 basis point (bp, 1bp = 0.01%) to 1.73%.

District Fed Economic Report published by the Federal Reserve Board (FRB)Beige book), The economy grew at a moderate pace at the end of last year, but corporate growth expectations for the coming months have declined in part.”The rationale for lifting the mitigation is extremely convincing,” said Mester, president of the Cleveland Fed.Stated

In the foreign exchange market, the dollar has fallen against all 10 major currencies. After the announcement of the US CPI, which was almost in line with market expectations, the rate of decline widened. The Bloomberg Dollar Spot Index, which shows the movement of the dollar against the 10 major currencies, was at its lowest level in two months. Norwegian krone had a high rate of increase against the dollar, partly due to the tailwind of high oil prices.

The dollar index fell 0.6%, the sharpest drop since May last year. The 100-day moving average was also below. As of 4:13 pm New York time, the dollar was down 0.7% against the yen at 1 dollar = 114.53 yen. The euro is up 0.7% against the dollar at 1 euro = 1.1449 dollars.

Trends in the dollar index: 50-day moving average (pink), 100-day moving average (green), 200-day moving average (yellow)

Bloomberg

New York crude oil futures prices continue to grow. There were signs that supply and demand was tighter than previously thought.

Crude oil inventories have fallen to their lowest levels since October 2018, according to the Energy Information Administration’s (EIA) weekly statistics.The Secretary-General of the International Energy Agency (IEA), Virol, said demand was stronger than expected.opinionExpressed. In addition, the dollar has fallen, and the investment appeal of dollar-denominated commodities has increased.

The February contract for West Texas Intermediate (WTI) futures on the New York Mercantile Exchange (NYMEX) ends at $ 82.64 a barrel, up $ 1.42 from the previous day. The North Sea Brent March contract for the London ICE is up 95 cents to $ 84.67.

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