Technology

5 Keys to Wall Street By Investing.com


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By Geoffrey Smith

Investing.com – The world’s largest stablecoin, the , is reeling as cryptocurrency’s rout deepens. The US Producer Price Index reading for April will be released today, one day after another worrying report on consumer inflation.

All signs point to stocks extending losses for the sixth day in a row, and even strong gains in streaming won’t be able to help Walt Disney (NYSE:). The SEC is investigating Elon Musk’s delay in disclosing information during his Twitter (NYSE:) offering, and oil is lower on the general decline in risk assets.

Here are the top five things to watch out for this Thursday, May 12, in the financial markets.

1. Tether falters as crypto crisis deepens

The world’s largest stablecoin fell below its 1:1 notional parity against the dollar on Thursday as global cryptocurrency selling surged.

Tether is down as low as 93.35 cents at the start of trading this Thursday in Europe – more than 6.5% below its parity level – but has recovered most of its losses after the Tether’s chief technology officer, Paolo Ardoino, said in an interview broadcast on Twitter that most of Tether’s reserves are now held in risk-free US Treasuries. He adds that the Tether network is meeting the demand for reimbursement “without breaking a sweat.”

Bailout demand is mounting as crypto investors head for the exits following news of the collapse of assets pegged to TerraUSD, a stablecoin that was largely backed by Bitcoin and algorithmic trading. The falls more than 12% to its lowest level since December 2020, while the falls more than 22%. The only beneficiary of the movement has been , a stablecoin that, like Tether, is backed by dollar reserves.

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2. IPP reports and unemployment benefits applications

The last act of the US inflation drama will take place at 14:30 CET, with the release of the April one. Analysts expect industrial prices to rise just 0.5%, a slowdown from 1.4% in March. That should bring the annual PPI down from 11.2% to 10.7%.

The figures come a day after the monthly report on consumer price inflation showed a mixed picture, with strong increases in travel demand and further strong increases in food and house prices, albeit with declines in the prices of products of the style —especially second-hand cars— that were in such high demand just a year ago.

At the same time, the Department of Labor will also release weekly figures for initial jobless claims. All indications are that they will be just below the 200,000 level, despite last week’s surprising rise.

3. Stocks appear on track to extend losses

US stocks appear on track to extend losses at the open, unable to ignore fears of slowing growth as central banks around the world move to tackle runaway inflation (except in China, where slowing growth is the result of a real estate crisis and the strict management of the pandemic.

At 12:15 PM ET, the {{8873|Jones futures}} was down 207 points, or 0.7%, while the futures were down 0.8% and the futures down 1.2%.

Stocks likely to command attention on Thursday include Walt Disney, which will open down almost 5% to its lowest level in two years in response to worse-than-expected results after the bell. on Wednesday, despite the fact that its Disney+ streaming network – under heavy scrutiny after Netflix’s (NASDAQ:) shocking subscriber drop in the first quarter – has added almost 8 million new subscribers, well above expectations .

4. The SEC investigates Musk’s Twitter revelations – Wall Street Journal

The US Securities and Exchange Commission is investigating Elon Musk’s delay in disclosing information about his involvement with Twitter, according to the Wall Street Journal, which cited people familiar with the matter late on Wednesday.

Musk disclosed the size of his purchase 10 days later than SEC rules allow. That allowed him to buy more shares without alerting others to the fact.

The news is unlikely to help soften Musk’s planned takeover of the social media platform, given its already contentious political dimension. Further declines in the value of Tesla (NASDAQ:) shares are also complicating the process.

5. Oil falls, but the IEA warns of the persistence of shortages in fuel markets

Oil prices fell on Wednesday, unable to escape global growth fears weighing on risk assets around the world.

By 12:30 PM ET, oil prices were down 1.6% at $104.02 a barrel, while oil was down 1.5% at $105.87 a barrel.

In a monthly report on the state of the oil market published on Thursday, the International Energy Agency has left its forecasts for global supply and demand more or less unchanged, although it has warned that global fuel markets could suffer more. tensions in the coming months as Chinese demand recovers after a series of new lockdown measures to combat COVID.

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