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Futures rise, despite fall in European markets

  • The S&P 500 points to a recovery after Tuesday’s fall.
  • Without progress in Ukraine, the focus shifts to corporate results.
  • The dollar remains firm, metals and oil march north.

S&P 500 futures were up 0.55% after closing 0.34% lower on Tuesday, the third straight decline. In Europe, the markets operate mostly in the red, with declines on average of 0.40%.

Results, inflation and rate hikes

The presentation of corporate results for the first quarter begins. J. P. Morgan it presented mixed results, with adjusted income down 4.6% (although beating consensus). Delta Air Lines ireported a lower-than-expected loss of $1.23 per share in the first quarter. BlackRock and First Republic Bank, among others, will report later.

In addition, operators will closely monitor the US wholesale inflation report On Tuesday the consumer price index showed an annual rise of 8.5%, the highest since 1981, now it will be the turn of the producer price index. An advance of 1.1% is expected in March and an annual rate of 10.6%. Another event to take into account will be the placement of 30-year debt in the US.

Tuesday’s inflation data generated movements in the bond Market, with a drop in yields, although this was later smoothed out. The upward trend remains firm in yields, in anticipation of a more aggressive policy by the Federal Reserve. The comments of central bank officials go along these lines. The 10-year rate on the US bond is at 2.72% and the 30-year rate at 2.83% (it marked a maximum in years ago at 2.87%).

The worldwide rise in inflation is expected to generate a change in the message of the European Central Bank Thursday. Hours ago it was Reserve Bank of New Zealand which had the largest interest rate hike in more than 20 years, rising by 50 bp to 1.50% (which did not boost the kiwi), and in hours, a Bank of Canada hike is expected.

Despite the fact that several central banks are raising rates, the dollar remains among the strongest currencies. DXY completed eight straight days of gains on Tuesday and recently turned negative for the day. It trades at 100.25, down 0.07%.

The Petroleum rises again and is at a one-week high, with a barrel of WTI well above $100.00. Metals also prolong the advance. Gold is at a one-month high near $1980 and silver at the $25.70 zone.

Technical levels

Source: Fx Street

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