Wealth Daily 13 July 2022



WEALTH DAILY 2022-07-13
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US equities fell on Tue, as investors brace themselves for the release of a highly anticipated US inflation report later today (Wed). Wall Street economists expect the report to show consumer prices heating up by 8.8% YoY in Jun.


The Dow Jones Industrial Average lost 192.51 pts or 0.62% to close at 30,981.33. The broader S&P 500 index fell 0.92%. The tech-heavy Nasdaq Composite retreated 0.95%. The small-cap Russell 2000 dropped 0.22%.


Most Megacap tech stocks fell on Tue, including Microsoft (MSFT US, -4.1%), Amazon (AMZN US, -2.26%), Alphabet (GOOGL US, -1.43%) and NVidia (NVDA US, -0.46%). Apple (AAPL US, +0.68%) and Meta Platforms (META US, +0.24%) shares are exceptions.


 All major S&P 500 sectors finished the day in the negative led by energy, which tumbled 2%. The front-month Brent and WTI futures closed down $7.94 at US$99.16/bbl and $8.25 at US$95.84/bbl respectively. Traders are pricing the impact of a recession on oil demand.


 The yield on the 10-year Treasury note slipped 2.41 basis points (bps) to 2.9687%, while the yield on the 2-year Treasuries fell 2.26 bps to 3.0491%.


The ICE dollar index (DXY), which measures the strength of the greenback against a basket of currencies, rose 0.05% to 108.072. %.


On Tue, the euro edged slightly higher to close at 1.0037 after hitting parity with the greenback for the first time in 20 years.


The most actively traded US gold futures (Aug) contracts settled down $6.90, or 0.4%, at US$1,724.80/oz. September silver, the most actively traded silver futures, fell 17.4 cents, or 0.9%, to end at US$18.958/oz.


European equity markets finished higher on Tue. The UK FTSE gained 0.18%, France's CAC 40 rose 0.80%, while the German DAX advanced 0.57