Monday's Markets Update (July 10, 2023)

12 Jul 2023 by rate3

On Monday, the Nasdaq (o:13645, c:13685) edged up a bit. Mega-cap names underperformed as investors rotated out of growth and into cyclical stocks. Traders are now awaiting consumer inflation data on Wednesday and producer inflation figures on Thursday for fresh insights into the economy. At the same time, BTC (o:30161, c:30837) speculatively rose by 2.2% during the daily session, only to slide back during after-hours.

Details
NY Fed reported that consumer inflation expectations for the year ahead fell for a third consecutive month to 3.8% in June, the lowest since April 2021. This is a decline of 3 percentage points from the series high of 6.8% in June 2022. Expected price changes declined for gas and food, but increased for college education, medical care, and rent. Home price growth expectations increased for the fifth consecutive month. The decline in inflation expectations suggests that consumers are becoming more optimistic about the future.

Notable Macroeconomic Updates:
Germany: The ZEW Indicator of Economic Sentiment for Germany fell to -14.7 in July 2023, the lowest level since December 2022. Investors expect the economic situation to deteriorate further by year-end due to rising interest rates and weak export markets. Profit expectations for export-oriented industries fell again. The assessment of the economic situation also declined to -59.5.