Fear of inflation dominates the global stock market

The fear of a disproportionate increase in prices has become one of the main concerns of analysts and investors. This is conclusively confirmed by the latest survey of Bank of America’s 216 managers. It points to inflation as the greatest danger that threatens the markets.

The fear of inflation has raised the markets’ negative reaction to the withdrawal of stimulus from central banks as the main fear for managers. Today, it threatens to provoke a corrective day in the main stock markets in Europe and the US. The one is already being seen in Asia, where the Nikkei yielded more than 1.5%. Besides, the Australian stock market registered one of its worst sessions in recent months after announcing the publication of a higher-than-expected growth figure in the wage price index released today.

After two sessions of consolidative cut in which the continental stock exchanges steepened, the decreases threaten to prevent overcoming resistance in the most immediate short term. Hence, the upward path cannot be resumed in search of higher targets.

 

Analysts believe that as long as the EuroStoxx 50 does not manage to overcome the resistance at 4,040 points, we cannot rule out that it continues to consume time. It could end up signing its fifth lateral week before resuming the upward path.

 

Fund managers leaning towards Europe

Fund managers continue to lean portfolios towards Europe. 38% of respondents have an overweight position in this region; It is the best figure for the eurozone since 2018, and this month it has overtaken emerging markets.

The attractiveness of the US market has continued to decline. Just 6% of respondents have an overweight position in the region at this time. In contrast, the United Kingdom is significantly improving its positioning in portfolios, and for the first time since 2014, the managers surveyed already have an average overweight position.

 

The Tokyo Stock Exchange lost 1.28% due to doubts about the US

The Tokyo Stock Exchange closed today with a 1.28% decline in the Nikkei, its main indicator. It resulted from the losses on Wall Street the day before due to the cooling of expectations about the economic recovery in the United States. 

The Nikkei registered a decline of 362.39 points to 28,044.45 integers. At the same time, the broader Topix index, which groups the securities with the largest capitalization, ended the day with losses. The Tokyo Stock Price Index dropped by 12.5 points or 0,66%, up to 1,895.24 units.

The Tokyo stock market was influenced by the uncertainty that prevailed on Wall Street the day before. The technology sector experienced sales, and worse-than-expected housing market data withdrew the world’s leading economy from the prospects for the recovery.

 

Softbank sank by more than 2%

Among the securities with the highest capitalization in Tokyo, the technology giant Softbank lost 2.04%, and the leading Japanese vehicle manufacturer, Toyota Motor, decreased by 1.36%.

The textile multinational Fast Retailing, an owner of the clothing store chain Uniqlo, lost 3.12%. Meanwhile, the video game company Nintendo advanced 1.22%.

As for the stocks which ended the day positively, the advances of Lasertec, the electronic components manufacturer, stood out. It increased by 1.13%. On the other hand, the Sony technology conglomerate profited 0.96%. These gains saved the company from the generalized losses in the sector. 

The sectors that experienced the most significant setbacks were paper, machinery, and glass and ceramics.

In the first section, 1,454 shares dropped. ​​At the same time, 662 shares increased, and 78 of them ended the day without changes. 

The trading volume amounted to 2.5 trillion yen (22,908 million dollars).

 

Korea Stock Exchange is not trading today

The Seoul Stock Exchange does not operate today due to a national holiday.

 

Wall Street closed in the red, and the Dow Jones fell 0.78%

Wall Street closed this Tuesday in red. Its main indicator, the Dow Jones, dropped by 0.78% on another day marked by sales in the technology sector.

At the close of the New York Stock Exchange session, the Dow Jones cut 267.13 points to 34,060.66. The selective S&P 500 fell 0.85% or 35.46 points, to 4,127.83.

The Nasdaq composite index lost 0.56% or 75.41 points, to 13,303.64.

By sectors, the losses of energy companies (-2.63%), industrial (-1.47%), and financial companies (-1.35%) stood out.

After a green start, the technology sector yielded 0.82%, with decreases in large firms such as Apple (-1.12%) and Microsoft (-0.86%).

The New York stock market lost its optimism about the opening and reacted to worse-than-expected housing market data and a new round of quarterly results.

According to experts, home construction fell by 9.5% in April to an annualized rate of 1.57 million. It was due to the increase in the prices of materials like wood.

Worries about inflation still disturb the market

Investors continue to operate with uncertainty and concern about the rebound in inflation. It caused stock market declines last week.

Tomorrow they will be awaiting the publication of the minutes of the last monetary policy meeting of the Federal Reserve.

Among the 30 listed on the Dow Jones, the most significant setbacks were for Chevron (-3.08%), Caterpillar (-2.08%), and Dow Inc (-1.96%).

The most relevant gains were for Walmart (2.11%) due to its considerable increase in sales in the first quarter, even though its profit decreased.

Home Depot and Macy’s, which also beat analysts’ expectations with their results, finished with declines of 1.02% and 0.31%, respectively.

On the other hand, AT&T tumbled by 5.80% after announcing yesterday the merger of its entertainment business with Discovery. The latter one sank by 2.72%.