Daily Alert – Tuesday 5th April 2022: Musk becomes Twitter’s largest shareholder

Mark NugentApril 2022, Daily Alert

Daily Alert – Tuesday 5th April 2022: Musk becomes Twitter’s largest shareholder

Good morning.

Yesterday, sentiment was indecisive. US equities received a boost on the news that Elon Musk had bought a further stake in Twitter, making him the biggest shareholder. This pushed the stock price up by 25 percent and dragged up the rest of the FAANG stocks.

Meanwhile, the U.S. Treasury halted dollar debt payments from Russian government accounts at U.S. banks, increasing the risk of bond default.

Indecisive sentiment and lack of real price drivers kept me out of the market last night.

Looking ahead, we have ISM Manufacturing PMI in the US.

As is often the case, the markets are calm in the run up the main event of the week – tomorrow’s FOMC Meeting Minutes. With the markets pricing in at least a 50 basis-point rate hike at the May 4th Fed meeting, and the USD appearing to have fully priced in expected hikes, it will be hard for the minutes to boost the USD yet further. A dovish statement seems very, very unlikely.

We will be back tomorrow.

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