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S&P 500: After the crash, the declines continue

  • Wall Street futures in the red, without recovering.
  • Metals and bonds continue to slide.
  • The dollar remains in the zone of maximums but loses strength.

After the sharp fall on Friday in the face of the Fed’s continuing harsh tone, stocks continue to slide. Futures lose around 1% and in Europe the losses are bigger. Metals are under pressure. Among currencies, the yen is one of the worst.

A rare surprise from Jackson Hole

On Friday Wall Street had a sharp fall and the recovery does not appear on Monday, but on the contrary it is maintained. S&P 500 futures fell 0.95% and Nasdaq futures fell 1.18%. In Europe, the DAX lost 1.11% and the CAC 40 lost 1.67%. London does not operate due to being a bank holiday in the United Kingdom.

After the Jackson Hole symposium, it became clear that central bankers are willing, for now, to lower growth, or even a recession, in order to face the recession. This shouldn’t have sounded surprising, but possibly there was some expectation about a softer tone.

The week after the Jackson Hole symposium finds markets still bracing for a world of higher interest rates. The Government securities are extending the slide that began on Friday on both sides of the Atlantic. The 2-year Treasury yielded 3.48% on Monday, the highest level since 2007. The 10-year tranche is near the recent peak at 3.11%. The 10-year German bond reached 1.55%, the highest since the end of June.

This rise is putting downward pressure on gold and also on japanese yen The Chinese yuan marked new lows in two years. The pound Sterling is under pressure from technicals and risk aversion. GBP/USD fell to new two-year lows and EUR/GBP is at one-month highs. Emerging market currencies present mixed results.

The economic calendar on Monday is light. In the US, the Dallas Fed manufacturing survey for August will be published. Fed Vice President Lael Brainard will make a public statement. The key event of the week will be on Friday with the official Friday US employment report which includes Non-Farm Payrolls.

The prices of Petroleum they are rising modestly on Monday, unaffected by poor weather in equity markets. The barrel of WTI is about $93.50.

The cryptocurrencies they are under pressure again and continue downhill. On Monday the declines are moderating. Bitcoin is trading below $20,000, after hitting a one-month low.

Companies reporting results on Monday include BYD, Catalent and Heico.

Technical levels

SP500

Overview
Today last price 4037.32
Today Daily Change -20.67
Today Daily Change % -0.51
Today daily open 4057.99
trends
Daily SMA20 4182.32
Daily SMA50 3998.4
Daily SMA100 4052.91
Daily SMA200 4290.69
levels
Previous Daily High 4214.27
Previous Daily Low 4057.62
Previous Weekly High 4214.27
Previous Weekly Low 4057.62
Previous Monthly High 4138.48
Previous Monthly Low 3720.07
Daily Fibonacci 38.2% 4117.46
Daily Fibonacci 61.8% 4154.43
Daily Pivot Point S1 4005.65
Daily Pivot Point S2 3953.31
Daily Pivot Point S3 3849
Daily Pivot Point R1 4162.3
Daily Pivot Point R2 4266.61
Daily Pivot Point R3 4318.95

Source: Fx Street

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