- Stock markets fell modestly on Wednesday, with caution replacing optimism.
- US futures lost 0.25% on average in the prior.
- Ahead: US retail sales data and Fed minutes.
European markets and Wall Street futures are trading modest losses on Wednesday. The optimism reflected in a significant advance on Tuesday is giving way to caution again. The situation on the Ukrainian border remains tense, global inflation is on the rise and there are important data ahead.
The S&P 500 down 0.24% before the open, the same as the Dow Jones. The Nasdaq loses 0.23%. In Europe, the English FTSE 100 fell 0.37% and the German DAX 0.15%. This implies a correction after the sharp rise on Tuesday, which had been boosted by the “withdrawal of some Russian troops” from the border with Ukraine.
Diplomacy and statements crossed over the issue of Russia and Ukraine continue to dominate the scene. For now, without escalation in the conflict. The eyes of the market are also on the economic data. US inflation data on Tuesday and UK inflation data today showed it remains far from under control.
The speed of adjustment of the Federal Reserve is another key issue for operators. In the American afternoon the FOMC meeting minutes January 25 and 26. Before that, US data on retail sales and industrial production will be released.
Prior to these events, the dollar is modestly lower, with DXY falling 0.07%. Metals are flat and trading neutral after erasing daily gains. XAU/USD is back near $1850 after failing at $1860 and silver at $23.35 after meeting resistance below $23.60. The barrel of WTI rises 1%.
The results presentation continues on Wednesday with Kraft Heinz, Shopify, Nvdidia, Cisco, Hilton and Hyatt, among others.
Source: Fx Street
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