Reuters Interview 7/1/22

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July 1, 2022
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Reuters Interview 7/1/22

  • World stocks struggle after biggest fall in index history
  • Euro zone inflation hits fresh record high
  • 10-year Treasury yield slides
  • Copper falls to 17-mo low as inflation data fans slowdown fears

NEW YORK/LONDON, July 1 (Reuters) – The second half of the year started with more declines in global stock indexes on Friday as recession concerns that have built in recent weeks also dragged down Treasury yields and metals.

U.S. Treasury yields tumbled on market expectations that U.S. consumer prices will come down close to the Federal Reserve’s inflation target.

The yield on 10-year Treasury notes fell 17.9 basis points to 2.795%, while the two-year yield, which typically moves in step with interest rate expectations, slid 19.4 basis points to 2.733%. Both were at four-week lows.

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MSCI’s world stocks index (.MIWD00000PUS), which on Thursday notched its biggest percentage decline for the first half of the year since its 1990 creation, was down 0.5%, while the U.S. benchmark S&P 500 (.SPX) was also down 0.5%. The S&P 500 closed out its worst first-half since 1970 on Thursday. read more

“We’re starting off the quarter the way we left off, with uncertainties and with a bear grip that continues to intensify,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

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But he expects stock market performance to improve overall in the second half of the year. “We’re going to see more green days in the second half than we’ll see red,” he said.

The S&P 500 last month confirmed it was in a bear market.

The Dow Jones Industrial Average (.DJI) fell 146.6 points, or 0.48%, to 30,628.83, the S&P 500 lost 17.62 points, or 0.47%, to 3,767.76 and the Nasdaq Composite (.IXIC) dropped 66.48 points, or 0.6%, to 10,962.26.

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