📆 Wednesday, May 22
► European markets dipped as investors absorbed mixed economic data and corporate earnings. The European Stoxx 600 fell by 0.35%, with most sectors trading in the red. The UK’s inflation rate dropped to 2.3% in April (core inflation 3.9% YoY), while the lowest since July 2021 the data came in well above expectations. The GBP surged while gilts plunged, causing the two-year yield to rise by approximately 14 basis points. The disappointing inflation report is the main reason for today's headwinds in Europe, as it pushes back expectations that the Bank of England will be able to cut interest rates and also increases doubts that price pressures are easing.
► In the US, all major indexes ended higher on Tuesday as investors assessed earnings reports from major retailers and anticipated Nvidia’s earnings results. S&P 500 futures are currently unchanged as the market awaits the Federal Reserve’s policy meeting minutes. The 10-year Treasury yield edged up by 3 basis points to 4.44% following gains in Europe. There is some optimism ahead of Nvidia’s earnings report which could benefit other tech stocks, however investors brace for volatility ahead of the report.
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