US stocks bounce back Summary: Despite another hotter-than-forecasted April inflation reading, investors’ risk appetite returned with a vengeance. Indices surged while the VIX slumped and US rates largely held steady. Animal spirits may have gotten a lift from news that the Colonial Pipeline had begun the restarting process as of last evening. Many commodity prices retreated, which also helped overall sentiment to some degree. Bitcoin pared some of its overnight losses brought on by Tesla CEO’s suspension of vehicle purchases paid with bitcoin, citing environmental concerns with cryptocurrency mining.
Overnight: - (US) President Biden signs executive order to improve the nation’s cybersecurity -(US) ENERGY SEC GRANHOLM: COLONIAL TO RESTART PIPELINE TODAY AT 17:00ET - BOJ Gov Kuroda stated in parliament that it was important to maintain steps to respond to pandemic impact on economy; unfortunate it was taking time to hit 2% CPI. -Tesla CEO Musk: Suspending purchases using bitcoin, concerned about Bitcoin's environmental impact - Senior BOJ Official noted that it would buy ETFs as needed under guidance of conducting large purchases when market fluctuations were large - UK Apr RICS House Price Balance: 75% v 62%e (highest level since the 1970s) - BOE’s Haskel stated that he was not that worried about inflation. Expected to see an economic rebound in the short term but must keep in mind the effects of scarring on the medium term inflation outlook - BOE's Haldane (chief economist) stated that by the end of 2021 CPI was likely to be above 2% target, expect double digit growth a year from now.
US Session -(US) Energy Sec Granholm: Colonial CEO indicated things went well regarding pipeline startup; some areas will see fuel supply relief as soon as Thursday - TV interviews -(US) APR PPI FINAL DEMAND M/M: 0.6% V 0.3%E; Y/Y: 6.2% V 5.8%E -(US) INITIAL JOBLESS CLAIMS: 473K V 490KE; CONTINUING CLAIMS: 3.66M V 3.65ME -Colonial Pipeline spokesperson: we have made substantial progress in safely restarting our pipeline system; by midday today, we project each market we service will be receiving product from our system -(US) Fed's Barkin (voter, hawk): Spending has come back faster than employment -(US) Colonial Pipeline reportedly did pay hackers nearly $5M in ransom - press.
Europe and Asia -(IL) Israel Apr Trade Balance: -$2.7B v -$3.0B prior -(RU) Russia Central Bank (CBR) sees 2021 GDP at top end of 3.0-4.0% range -(JP) Japan PM Suga said to consider virus restrictions for more prefectures - financial press -(UK) BOE Cunliffe: e-Commerce fueling appetite for digital money; experience over last 12 months will accelerate shift from physical cash to digital money.
- Source TradeTheNews.com