(News Bulletin 247) – The New York Stock Exchange should rise on Friday at the start of the session, supported by new signs of appeasement on the inflation front.
Half an hour before the opening, the ‘futures’ contracts on the major New York indices advance from 0.2% to 0.3%, announcing a slight increase in the opening.
The Labor Department announced this morning that import prices rebounded 0.4% in April, after falling 0.8% in March, but the underlying trend is showing signs of a slowdown in inflation.
As a variation over the last 12 months, import prices show a fall of 4.8% in raw data.
The weakness of import prices, under the effect of the strong dollar and the ebb of oil, gives hope that inflation will soon return to around the 2% target set by the Fed.
Investors are now waiting for the consumer confidence index from the University of Michigan, which could translate into a deterioration that does not bode well for consumption.
The timid revival of risk appetite is for the moment leading to some sell-offs on the bond market and therefore a rise in yields: the ten-year thus goes back above the 3.40% mark
On the foreign exchange market, the dollar confirms its recent recovery against the euro, which gives up 0.25% to 1.0887, even if the prospect of a rate hike in mid-June seems to have completely faded in view of the latest inflation figures.
Despite the upturn of the day, the fear of an economic downturn is never far away and BofA analysts warn this morning in a strategy note that a recession could come to ‘shatter’ the credit market and the technology stocks, just as was the case in 2008.
Copyright (c) 2023 News Bulletin 247. All rights reserved.
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
