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Japanese Chief Cabinet Secretary Minoru Kihara: No unusual activity has been observed at Mount Fuji.June 26th - According to sources, the ruling coalition led by German Chancellor Merz is negotiating up to €20 billion in personal income tax cuts, attempting to leverage the current momentum to advance a broader reform agenda. However, the parties remain divided on how to finance the tax cuts. Merzs Christian Democratic Union (CDU) leadership and the Social Democratic Party (SPD) leaders will meet on Sunday to bridge their differences on tax cuts for those earning less than €100,000 annually. The coalition partners are preparing to meet on July 1st to finalize plans for pension, healthcare, and tax system reforms to revitalize German economic growth.New York gold futures touched $4,100 per ounce, up 1.29% on the day.U.S. stocks narrowed their losses, with the S&P 500 briefly turning positive, the Dow Jones Industrial Average down slightly by 0.01%, and the Nasdaq Composite Index narrowing its losses to 0.26%.On June 26th, the final reading of the University of Michigan Consumer Sentiment Index for June came in at 49.5 (preliminary reading 48.9), up about 10% from May, due to a slight decline in gasoline prices. Consumer confidence improved across income, wealth levels, and political affiliations. Expectations for business conditions over the next five years rose sharply by 16%, suggesting that consumer concerns about the long-term consequences of the conflict with Iran appear to be easing. However, the index remains in unfavorable territory, 13% lower than the figure for February 2026 (before the outbreak of the conflict) and nearly 20% lower than the same period last year. The cost of living remains the biggest concern for consumers: for the third consecutive month, more than half of consumers cited high prices as dragging down their personal finances. Inflation expectations for the next year fell slightly to 4.6% this month from 4.8% in May, but remain high. The current reading is significantly higher than the 3.4% in February before the outbreak of the conflict, and also higher than all data for the whole of 2024. Long-term inflation expectations fell to 3.3% in June from 3.9% last month, but remain slightly above the 2.8%-3.2% range for 2024.

Wall Street Mixed Ahead of Friday’s US Jobs Data; Energy Stocks Drop 3.6% on Oil Price Decline

Skylar Shaw

Aug 05, 2022 15:39

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Indices Are Mixed, and Energy Stocks Are Hurt Due to the Declining Oil Price

On Thursday, the major US stock indexes were uneven, with the Nasdaq 100 index rising 0.44 percent to new highs over 13,300 since early May, the S&P 500 maintaining flat at 4,150, and the Dow falling 0.26 percent to close to 32,725 points. A near 6.0 percent increase in Advanced Micro Devices and a more than 2.0 percent increase in Amazon's share price were the main drivers of Nasdaq 100 outperformance. While this was happening, Walmart's near 4% decline and Chevron's almost 3% decline weighed on the Dow.


Chevron was hardly the only US oil company to suffer; in fact. Exxon Mobil had a decrease of almost 4.0 percent, while the S&P 500 Energy GICS sector as a whole lost 3.6 percent. This was due to additional drops in the world's oil markets and a dimming demand forecast. WTI dropped to below $90 per barrel, its lowest point since February 2014, just before Russia invaded Ukraine.


The price of Coinbase Global's stock increased by 10% at the close of business on Thursday as a result of the announcement that global asset management firm Blackrock would provide its customers with access to cryptocurrency trading services via Coinbase's institutional platform, Coinbase Prime. Shares of COIN had increased by as much as 44% throughout the day at one point.

Investor Attention Turns to the NFP Data on Friday

Wall Street was neutral on Thursday, but none of the main indexes experienced significant swings outside of previous levels due to investors' caution ahead of the Friday publication of important US job market data. The assumption that US inflation has peaked and the notion that the labor market is now weakening as the US economy slows are just two emerging economic storylines that recent data has shown are forming.


The second of these two storylines was in fact strengthened on Thursday by new data showing an increase in US weekly unemployment claims, perhaps putting pressure on the US currency and US rates. Traders will consider Friday's data in light of how it contributes to these stories. It may be more confident in a less aggressive Fed tightening forecast if the pace of job increases slows from June's 372,000 and the pace of average hourly wage growth moderates from June's 5.1 percent YoY.


Given that the battle against inflation is far from being won, Fed officials have been careful this week to caution the markets not to get ahead of themselves by betting on rate decreases in 2023. The Fed's Loretta Mester signaled that the bank is open to another 75 basis point rate rise in September, depending on the data, and said that the Fed would need to see many months of inflation drifting down before the central bank would take its foot off the throttle in terms of tightening.

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