Dino shares rose 9.98%
It is worth noting that the company, earlier on the wave of recent copper price rises, improved its record price set in January. On the other side of the market were Dino shares, which rose 9.98%.
The company published clearly better-than-expected results for Q1, showing strong LFL sales momentum.
Interestingly, despite the Friday environment focused on inflation fears and higher interest rates, weak sentiment also persisted in the banking sector – WIG-Banks lost 2.59% at the close of the Friday session.
The Warsaw Stock Exchange was not isolated in the declines. A similar fate befell most indices in the Old Continent – Germany’s DAX ultimately fell 2.07%, and France’s CAC40 1.60%. This time, investors on Wall Street also did not escape discounts – after Thursday’s record, the S&P 500 fell on Friday under its own weight, losing 1.24%. The same scenario repeated for the tech Nasdaq, which ended the session down 1.54%.
Investors were largely disappointed by the lack of breakthrough after Donald Trump’s meeting with Xi Jinping. Both leaders agreed that the Strait of Hormuz must be opened, but that was not enough to calm concerned investors. The prolonged deadlock in the Middle East pushed up bond yields – for U.S. 10‑year bonds, the level is over 4.5%, which may already be problematic for the equity market.
Chance of a Fed rate hike in December rises
The futures market estimates that the probability of a 25‑basis‑point Fed rate hike in December has more than doubled in the last week, to about 40%.
At the time of writing the Asian markets still dominated by a red color.
The situation was not improved by Chinese macro data, which in April negatively surprised both industrial production and retail sales.
The Hang Seng loses about 1.2%, Japan’s Nikkei about 0.6%, and India’s Sensex about 1.1%. Futures on European indices suggest that the minor sentiment from Friday will persist.
Much indicates that the coming days in equity markets will be corrective, although the situation can change at any moment with positive news from the Middle East.
There is also a good chance of turning investors’ attention with the upcoming release of Nvidia’s quarterly results, which we will see on Wednesday after the end of the Wall Street session.
