Futures point to a modest recovery after two days of falls

• Equity markets were affected by the message of a more aggressive Fed.
• Treasury bond yields remain near their highest in years.
• Dollar remains firm, DXY targets 100.00.

The S&P 500 futures up 0.16% on Thursday, after falling 0.97% on Wednesday. Equity markets show small signs of recovery after two sharp declines, mainly motivated by the more aggressive message from the Federal Reserve.

The minutes of the latest Fed meeting, published on Wednesday, reinforced the possibility of a 50 basis point hike at the next meeting, supporting the rise in Treasury yields and the dollar.

At the same time, the war continues Ukraine without expectations of a change in the short term. The Russian ruble it already operates at pre-invasion values. On Europe, the main squares go up. The DAX climbs 0.40%, the CAC 40 advances 0.67%, and the exception is the FTSE 100 which falls 0.08%.

Oil trades flat on Thursday, with the WTI around $97.00, trading sideways. Metals are also moving sideways, with gold around $1925 and silver around $24.35.

The dollar remains firm in the market. The DXY It trades in barely positive territory at 99.65, after hitting highs since May 2020. The main support comes from the rise in Treasury bond yields. The 10-year rate is 2.59% and the 30-year rate is 2.63%.

Several Fed officials (Bullard, Evans, Bostic and Williams) will speak on Thursday. In addition, in the US, the weekly report on requests for unemployment benefits will be published and the European Central Bank will publish the minutes of the last meeting of the Governing Board.

Technical levels