EU and US Futures are in the green despite inflation figures that continue to hit new records. Markets are digesting the most recent US data on inflation, which has grown at the fastest pace in 40 years due mainly to fuel, food, and rent costs.
Concerns are growing that the Fed may raise rates by as much as 100 basis points at the next meeting instead of the 75 basis points expected. The figure in the US was higher than expected, which will lead the Fed to be even more aggressive with the rate hike.
The ECB, on the other hand, cannot be aggressive with the looming energy crisis. This dramatically devalues the EUR/USD exchange rate.
Hot stocks And Instruments
Twitter (NYSE:TWTR), down 5%. Elon Musk has withdrawn from the acquisition. The price (35 USD) is now a long way off the $ 54.20 offer presented by Musk in April. A tough legal battle is expected between the social network and the billionaire auto entrepreneur.
Natural gas: A delicate moment in Europe. The potential negative repercussions of the Nord Stream 1 maintenance shutdown were mitigated by Canada's decision to allow the delivery of a turbine that should restart Russian gas supplies to Germany.
The Nord Stream is currently on halt for scheduled maintenance, but activities should resume, assuming the turbines arrive, starting on Jul. 21.
Alibaba (NYSE:BABA) -7% was fined, along with other Chinese Internet companies, by the monopoly supervisory authorities in Beijing.
Conclusion
On Twitter, in previous articles, I said that the deal would not be concluded at that price. So it was. Regarding the point of fake users, whether they are present or not, the court will decide.
Indeed, the news is terrible for the stock, which was already overvalued. The stock is worth $15, so there is plenty of room to go down. Soon I could open a bearish position on this stock.
Concerning gas, in a few days, we will know if Russia will close the taps on Europe. This contingency, combined with the intense heat swiping the United States, as expected, is giving a significant boost to natural gas prices.
If Russia closes the taps, the chances of seeing new highs for gas in the $10 area are very high, as European demand for gas will increase.
Regarding Alibaba, the news is not very serious, but the stock market always exaggerates negatively and positively.
According to my models, the stock is worth 110-120 $, so only in the case of new descents could we consider a purchase on the stock.