Indices looked for direction for much of the day, hovering between green and red before turning lower.
For Edward Moya, the dominant theme continues to be “growth concerns,” while investors noted several poor indicators on Tuesday.
In the United States, the NFIB index, which measures small business morale, came in at 89.5, well below expectations and the lowest in nine years. In Germany, investor confidence plummeted to 2011 levels, according to the ZEW Barometer.
The general sentiment was also reflected in the drop in oil, which lost more than 7% and fell below $100.
Most stocks in the oil sector were caught up in this dynamic, as Marathon Oil (-3.1%) and Occidental Petroleum (-3.6%).
Despite the hesitation, New York stock indices remained within narrow margins of loss, showing a general wait-and-see attitude ahead of Wednesday’s release of the June US Consumer Price Index (CPI).
Expected slightly above the May index (8.8% against 8.6% in the accumulated twelve months), it should provide information on the path of inflation, which the Federal Reserve (Fed, central bank) is determined to curb.
Wall Street is also expecting the first flurry of financial results from US banks on Thursday and Friday, which traditionally mark the start of earnings season.
In the bond market, rates fell again on Tuesday. The 10-year government bond yield stood at 2.97%, compared to 2.99% the day before, below the 2-year rate, a rare phenomenon considered by many to harbinger a mid-term recession. term.
Source: Ambito
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