AiTrading.blog – Analysis Studies News (pubblicato alle ore 14:45)

U.S. consumer price index data favor the possibility of large Federal Reserve rate hikes. This morning German futures indicate -2.21 percent and for the eurostoxx -2.38 percent, that on the Nasdaq -0.47 percent and on the SP500 -0.51 percent

Many titles can be found to comment on a day like yesterday.
And just yesterday I wrote an article – Irrational Euphoria – that tried to explain exactly what was happening.

Futures flat waiting for the FED and Powell’s speech . Will they raise rates by 0.5 or will they go up to 0.75 as some analysts say ?

A day of ordinary madness yesterday. Due to a mistake (or so they said), a Citi trader from the London desk made a wrong operation that saw a selloff of Swedish shares, overturning the main European index and sweeping away 300 billion euros.

The expected bounce near oversold on SP500 and Nasdaq was there. Good some quarters (Apple), bad others (Amazon). But after the close the enthusiasm waned. Facebook was very good with +17% even if the growth of revenues was affected by competition from TikTok. Paypal was also excellent, closing with +11,48%.

Yesterday the stock exchanges were waiting for some signals from the various open fronts. Germany would be willing to support a gradual ban on Russian oil .  Meta rose nearly 20% in the after-hours market after Facebook users grew more than expected to 1.96 billion daily users.

Yesterday heavy descent of all stock exchanges. In Europe, the rebound attempt held half the day, then the sinking. Data of some big companies have disappointed. 

European stocks could rebound after Monday’s slide. Stocks rose in Asia after China promised additional economic support to bolster the economy devastated by lockdowns for Covid.

A very bad day yesterday, with Netflix’s collapse taking other giants of the tech index with it. The collapse of Netflix subscribers has cost the company the loss of 35% of its value in the stock market.  From its peak on November 17, 2021 to today , the stock has lost 67%. And Netflix is practically back to 2018 values.

World Bank Chief Economist Carmen Reinhart said the global economy is going through a period of “exceptional uncertainty” and did not rule out further downgrades to the growth outlook.

Continuous reversals of the U.S. indices that now try to exit (upwards) from the rectangle created by the sideways movement on a 1h time frame

Yesterday was a day dominated by high volatility in the US markets. Also in Europe the uncertainty moved the prices significantly.

Stock Exchanges sink in the face of an increasingly gloomy scenario.
In addition to the FED becoming more and more aggressive in the fight against inflation, there is also the growing complexity of the Ukrainian conflict to worsen the situation.

INDICI in fase di correzione
Probabilmente il movimento attuale dei prezzi è motivato dalla affermazioni di Lael Brainard.

Yesterday’s news about Elon Musk’s significant purchases of Twitter shares pushed the Nasdaq well above expectations, with the Nasdaq100 closing +2%. The SP500 also benefited with a 0.81% close.