Equities in oversold territory, but recession fears weigh

📰 U.S. stock futures continue to try to move higher out of short-term oversold territory, but concerns about a global economic downturn continue to weigh on market sentiment. U.S. equities remain highly volatile, swinging between gains and losses in search of direction. 

In Europe, market sentiment has deteriorated as PMI data from the Eurozone's largest economies, Germany and France, came in worse than expected. This shows that business executives are less optimistic about the direction of the economy – and I believe that pessimism will only increase as many European countries face a severe energy crisis.

Markets are also still reacting to comments made by Fed Chairman Powell, who has now also said himself that the current drastic rate hikes could trigger a recession in the U.S., and that the task of achieving a soft economic landing is “very difficult” (note Robert – in reality, impossible). The Fed remains committed to taking drastic action to cool inflation, which is at a four-decade high. Powell reiterated his determination to bring consumer price growth back down to the 2% target – but that can only be achieved by a sharp decline in consumer spending, which in turn means lower corporate profits and earnings forecasts.

The Fed's ultra-aggressive (hawkish) stance continues to support the USD, exacerbate recession fears, weigh on U.S. Treasury yields and commodity prices (including oil and gold), as well as the already battered crypto market.

It remains difficult to predict near-term movements in equity markets. Investors continue to buy some of the heavily battered stocks. It will continue to be the case that the markets are still trying to rally (in the short term) before likely turning further south later this month and in July-August. I think further short-term gains on Wall Street are more likely than seeing none. European stocks will underperform those traded in New York.


👁 ROB'S MARKET OVERVIEW:

🇺🇸 US Markets ↕️
Cyclical Stocks ↕️/↘️
Tech/Growth Stocks ↕️/↗️
Financial Stocks ➡️
Energy Stocks ↕️

💱 Forex Markets 
USD ➡️/↗️
JPY, CHF ➡️
GBP, CAD ➡️/↘️
EUR, AUD, NZD ↘️

⚒ Commodity Markets ↘️
Oil prices ➡️/↘️
Gas prices ↘️
Metal prices ↘️
Precious Metals ➡️/↘️

⚡️Crypto Market ➡️/↘️

(*↗️ bullish, ↘️ bearish, ➡️ sideways / stable, ↕️ mixed / volatile)

Yours, Robert 🏭🏗😶‍🌫️