US markets losing their streak ahead of the major earnings
Mumbai: Following the release of the noteworthy CPI numbers, the data for producer price index got released yesterday making its presence largely known by touching a new high since 2010. The December PPI increased by 9.7% on a year-over-year basis and only by 0.2% on a monthly basis against the expected 0.4%.
Along with the PPI numbers, the weekly Initial Jobless Claims data also arrived with the number being above the level projected. Lael Brainard, the nominee to take the number-two position at the central bank, remarked that the US inflation is “too high” and the Federal Reserve will make the issue a priority.
Ahead of the major bank earnings scheduled to be released on Friday, all the US indices went down reversing nearly all the gains made this week with Nasdaq Composite losing its three-day streak. The Dow Jones index was down 0.5% while the S&P500 lost 1.42%.
Further, the Nasdaq Composite closed 2.5% lower with all major tech names closing lower. In addition, the Dollar index stayed below the 95-mark while the US 10-year treasury yield was at 1.73%. Bitcoin also tumbled below the USD 40,000 mark before regaining its way back to USD 42,600.
As compared to the trend reversal seen in the US indices, the European markets seemed mixed with the markets still trying to digest the US inflation numbers. While DAX was up by 0.13%, Stoxx600 was down 0.03%. Even the Asian markets had mixed trends with Nikkie losing 0.96%, while Hang Seng gaining nearly 0.11%. Moreover, even China released its trade data numbers which showed that its dollar-denominated exports grew 29.9% compared to the past year exceeding expectations and its imports also rose 30.1%.
For today’s trade, the eyes will be on the US retail sales number as well as on the major bank earnings.