Wake Up Wall Street (SPY) (QQQ): European PMIs surprise to upside as NATO meeting eyed by investors
Here is what you need to know on Thursday, March 24:
Equity markets paused for breath on Wednesday after a stirring rally has seen the S&P 500 rally for the last week by nearly 10%. Tech has also seen a strong move higher, but what about that that KWEB China Tech ETF? It is up by nearly 60% over the past week.
Thursday looks set to be another stalling session as investors wait to see how the NATO and EU meetings unfold. The EU remains dependent on Russian energy and is resisting US pressure for a ban. Germany says a ban would plunge the EU into recession. It is a regular old catch-22 then. The rouble got a neat bounce on Wednesday as Russia says it will seek payments in roubles for oil and USD/RUB rallied nearly 10%. The Rouble is back below 100 now versus the USD, having hit a low at over 150 at the start of Russia's invasion of Ukraine.
Bond yields continue to move higher but also in a more measured fashion. The US 10-year is now yielding 2.38%, and the yield curve is steady at 23 basis points. It is still flattening but also slowing. The dollar index is a touch higher at 98.74 as the euro gained some ground from the surprisingly strong PMI data. Gold is at $1,946, barely changed, and oil is going for $114.75, up less than one percent. The Bloomberg Commodity Index was up nearly 3% on Wednesday to $128.85, not far from the peak at $136. This time last year it was trading at $83.
European markets are mixed: Eurostoxx +0.5%, FTSE +0.5% and Dax -0.2%.
US futures are higher: S&P +0.6%, Nasdaq +0.7% and Dow +0.5%.
Wall Street News
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Eurozone PMI 54.5 versus 53.8 expected.
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Alaska Air (ALK) investor day today.
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Allego (ALLG) up 8% premarket on retail investor interest. EV charging company SPAC deal.
Next Decade (NEXT) announces 20-year China supply deal.
Trip.com (TRIP) up on strong earnings.
Moderna (MRNA) raises guidance.
Johnson Controls (JCI) upgraded at Deutsche.
Pfizer (PFE) granted FDA break-through therapy status for RSV vaccine.
GameStop (GME) and AMC are down in premarket after massive rallies this week.
Darden Restaurants (DRI) gives lower guidance, shares fall in premarket.
Eli Lilly (LLY) says FDA is unable to approve application for lung cancer treatment Sintilimab.
Upgrades and downgrades
Source: Benzinga Pro
Economic releases
The author is long puts in QQQ, AMC and GME
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
