Here is what you need to know on Thursday, June 17:
The Fed did its best to avoid another taper talk tantrum, and it appears to have done the trick. Market fears over inflation running out of control have been calmed and the 10-year yield is even falling this morning despite the Fed bringing forward talk of rate hikes and a likely but as yet unmentioned tapering of its bond purchases. The VIX remains below 20, so all is calm in equity land. Perhaps the Fed can work its magic after all and keep the booming economy and stock market going without overheating either. Curevac is a big loser in the premarket as the stock drops 40% after the company's covid vaccine candidate showed it was only 47% effective against covid.
The dollar went on a tantrum of its own on Wednesday and Thursday with its value continuing to rise, up to 1.1935 now versus the euro. Oil is at $71.80, Gold at $1,784 and Bitcoin is at $38,700.
European markets are mixed, the Dax is flat, FTSE is -0.2%, and the EuroStoxx is +0.25%.
US futures are negative, S&P and Dow futures are both down by 0.3%, while the Nasdaq drops 0.5%.
Wall Street top news
Fed pencils in two rate hikes in 2023, previously the Fed had seen 2024 as most likely for rate hiking.
US jobless claims 412K versus 360K forecast.
Kremlin says President Biden, President Putin summit was a success.
Norway says it may be time to soon raise rates.
Eurozone CPI in line at +0.3% monthly.
Curevac (CVAC) drops 40% in the premarket on covid vaccine results.
Magnolia Oil & Gas (MGY): Keybanc raises the price target to $17.
Tenet Healthcare (THC) announces the sale of five hospitals for over $1 billion. Shares up 3% premarket.
DELL chosen by DISH for key parts of its 5G infrastructure-CNBC.
Prothena (PRTA) upgraded by Jefferies on Wednesday, up 3% premarket after multi-year high on Wednesday.
Fisker (FSR) signs an agreement with Magna (MGA) for manufacturing.
Two Harbours Investment (TWO) to join S&P Small Cap 600. Shares up 4% premarket.
AON and Willis Tower Watson (WLTW): US Justice Department sues to block proposed deal.
Novavax (NVAX) up 3% premarket as Curevac competition less likely and Serum Institute of India is reportedly starting trials of Novavax vaccine on children this summer.
Jack in the Box (JACK) RBC rates as outperform as it starts coverage on the stock.
Upgrades, downgrades and premarket movers
Source: Benzinga Pro
Economic releases due
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AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.