Futures fall after sharp rises on Tuesday

• Optimism for alleged Russian de-escalation of the war is disappearing.
• Focus returns to data with inflation in Germany, employment in the US.
• Oil and metals rebound, DXY falls for the second day in a row.

After a strong rise of 1.23% on Tuesday, S&P 500 futures point to a moderate correction and fall 0.23%. In Europe, the main markets are in the red with falls of up to 1.40%, before important data and with attention on Ukraine.

The optimism due to the announcements of a slowdown in military operations by Russia is fading. In Ukraine they affirm that it would not be happening. The climate of caution remains in force and will be mixed with economic data in the coming hours.

Commodities rise on Wednesday. Oil fully recovered from Tuesday’s decline and is up 2.45%, with WTI firm above $105.00. Gold is up 0.55% and is at $1925, while avocados extend the rebound and are close to $25.00.

In minutes the preliminary data of March inflation in Germany. The rise in inflation has created expectations of a monetary adjustment sooner than expected by the European Central Bank. Then it will be the turn of the report of ADP private employment in the USwhich will be followed by a new growth estimate for GDP of the fourth quarter. Thomas Barkin and Esther George, Federal Reserve officials will speak publicly. In the American afternoon, EIA oil inventory figures will be released.

The dollar is falling for the second day in a row, despite the rebound in Treasury yields. The rise in commodities and government bond rates throughout the world is gaining strength. The DXY is at weekly lows in the 98.00 area.

Technical levels