By Jeffrey Smith and Anna Beatrice Bartolo
Investing.com – The world’s most important stable currency, fluctuates as a defeat in Cryptocurrency deepens. The US Producer Price Index for April is due, a day after another worrying report on consumer price inflation. US stocks should extend their losses, and even strong gains in streaming can’t help Walt Disney (NYSE 🙂 (SA :). The Securities and Exchange Commission is investigating Elon Musk’s latest disclosures in his Twitter show (NYSE 🙂 (SA 🙂 and he’s on the decline amid a general decline in risky assets. The new Minister of Mines and Energy already has big plans for privatization.
Here’s what you need to know about the financial markets on Thursday, May 12th.
1. The rope fluctuates as the encryption path deepens
The world’s largest stablecoin fell below its theoretical 1:1 peg to the coin on Thursday as the global cryptocurrency sell-off deepened.
Tether fell to 93.35 cents in early European trade – more than 6.5% below its level – but recouped most of its losses after Tether’s CTO Paolo Ardoino said in an interview broadcast on Twitter that most of Tether’s reserves are now held in risk-free US Treasuries. . He said Tether’s network was responding to the ransom demand “without a drop of sweat”.
The demand for bailouts is growing as crypto investors head to the exit after the collapse of the assets linked to TerraUSD, a stablecoin that has been largely backed by algorithmic trading. Bitcoin is down more than 12% to its lowest level since December 2020, while Bitcoin is down more than 22%. The only beneficiary of the change was, a stable currency, such as the Tether, backed by dollar reserves.
2. Insurance against inflation and unemployment in the United States
The final act of the US inflationary drama is set to occur at 9:30 AM with the release of Producer Price Inflation for April (). Analysts expect factory prices to rise only 0.5%, down from 1.4% in March. This will bring down the annual PPI from 11.2% to 10.7%.
The numbers come a day after the monthly consumer price inflation report showed a mixed picture, with strong increases in demand for travel and further strong rises in food and housing prices, but with lower prices for the type of merchandise – especially used cars – that were in demand a year ago.
At the same time, the Labor Department will also release figures for the week. Initial claims are expected to be just under 200,000 despite the sudden strong rally last week.
3. In Brazil the Minister of Privatization
On his first day in office yesterday, the 11th, the new Minister of Mines and Energy, Adolfo Sachida, said that he would ask the Minister of Economy, Paulo Guedes, to conduct studies that would facilitate the privatization of Petrobras (SA 🙂 and PPSA, the company responsible for marketing the oil and the product in the subject salt Union Law.
Sashida also advocated two bills aimed at “modernizing the electricity sector” (414/2021) and changing the concession-sharing system (3178/2019). According to the new minister, the idea is to facilitate private investment.
In addition, the new minister highlighted the “urgent necessity” that exists in the ministry to move forward with the privatization of Eletrobras (SA:). Among the recent events in this case, Minister Vital do Rêgo, asked the Federal Court of Audit (TCU) to open an audit of the company’s accounting procedures for the provision. The request was approved unanimously in plenary. He also informed Vital that he plans to bring Operation Eletrobras back to the TCU plenary next Wednesday, the 18th.
At 08:23, the EWZ ETF was down 1.08% ahead of the market at $30.34.
4. US stock market
US stocks are likely to extend losses, unable to dent fears of slowing growth as central banks around the world work to combat hyperinflation (except in China, where the slowdown in growth is a result of the housing crisis and pandemic management).
At 8:11 AM ET, futures contracts were down 0.29%, while the 100 and 100 futures contracts were down 0.37% and 0.76%, respectively.
Stocks likely to be in focus include Walt Disney, which is set to open nearly 5% in response to weaker-than-expected earnings. That’s despite the fact that streaming network Disney+ – which is under a lot of scrutiny in the wake of Netflix’s (NASDAQ 🙂 (SA :)) subscriber drop in the first quarter – added nearly 8 million new subscribers, far exceeding expectations.
Any disappointment at Mouse House should pale in comparison to Softbank (TYO :), which posted a $13 billion loss in the just-ended fiscal year, due to large writedowns on some of its holdings, such as the ride-sharing company. Didi Global, the Singapore-based Grab and food delivery company DoorDash. Softbank shares lost 8% in Tokyo overnight.
Meanwhile, the Securities and Exchange Commission (SEC), or US CVM, is investigating Elon Musk’s belated disclosure of his Twitter stake, according to the Wall Street Journal. Musk released the volume of his purchase 10 days after SEC rules allowed him to buy more shares without alerting others to the truth.
The news is unlikely to help mitigate Musk’s planned takeover of the social media platform, given its already controversial political dimension. Further declines in the value of Tesla (NASDAQ::) (SA 🙂 stock, which Musk intended to pledge a portion of his purchase loan, also complicate the process. Twitter shares are set to open at $45.26, the lowest since Musk made his offer to make the company private at $54.20 a share.
5. Falling oil
Oil prices fell on Wednesday, unable to escape global growth concerns weighing on risky assets around the world.
As of 8:16 a.m., US crude oil futures are down 1.14% to $104.50 a barrel, while oil futures are down 1.29% to $106.12.
In a previously published monthly report on the state of the oil market, the International Energy Agency kept its forecasts for global supply and demand largely flat, but warned that global fuel markets could face more pressure in the coming months as Chinese demand rebounds after a while. The new wave of COVID-19 lockdowns.
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