Hacking groups Killnet, Anonymous Sudan, and REvil, in their latest video, have issued threats to carry out a "destructive attack" on the European financial system, starting with the SWIFT international communications system within the month. They claim to be retaliating against Europe's support for Ukraine in its conflict with Russia. While the credibility of the threats may be questionable, security researchers advise financial institutions to remain on high alert due to Killnet's history of powerful DDoS attacks. The involvement of the Russian government is suspected, as all three groups have been linked to the GRU security service in the past. Russia has been excluded from using the SWIFT system since its invasion of Ukraine. The global trading network is expected to halt if the collaborative group succeeds, possibly shifting the payment system from SWIFT to cryptocurrency.
EQUITY
The S&P 500 and Nasdaq reached their highest levels in 14 months as the market was buoyed by easing inflation and strong retail sales in May, leading to a surge in big tech. The winner on Thursday, however, is Domino's Pizza, after analysts at Stifel upgraded their outlook on the stock. The market overall remains optimistic even when 71.9% predict a rate hike at the next FOMC.
GOLD
Gold prices remained sideways as investors weighed expectations for more rate hikes by the Federal Reserve after gaining on Thursday on a weaker dollar. The Fed's decision to keep rates steady and limited economic headroom for rate hikes have fueled speculation that gold may benefit from a prolonged pause in the rate hike cycle.
OIL
Positive data on refinery throughput in China briefly boosted crude prices, but weak economic indicators and global interest rate concerns weighed on the price. Despite OPEC's production cuts, analysts predict that oil supply may exceed demand, especially with bleak industrial and manufacturing data .
CURRENCY
The euro surged to a 15-year high against the yen and a five-week high against the dollar after the ECB raised interest rates for the eighth time and indicated more tightening ahead. In contrast, the U.S. Federal Reserve paused its rate hikes but suggested another two rate hikes, pushing the dollar to hit a five-week low. U.S. retail sales unexpectedly rose in May, while initial jobless claims maintained.