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S&P 500: Air of optimism ahead of US data and more results

  • Good tone across equity markets on Thursday.
  • Traders awaiting more results and US economic data.
  • The mixed dollar, metals and cryptocurrencies lose momentum.

Corporate results, the latest economic data and a not so pessimistic outlook for growth at this time are giving support to equity markets, ahead of the release of US economic data and in the week ahead that will count with the decisions of the Fed and the ECB. The dollar fell to new lows in months.

Will the green follow the data?

In Asia, the Hang Seng closed with a significant rise of 2.35% and the Nikkei 225 fell 0.12%. Markets in China remain closed for the holidays. In Europe, green predominates. The FTSE 100 is up 0.25%, the DAX is up 0.35% and the CAC 40 is up 0.79%. The S&P 500 closed virtually unchanged on Wednesday after managing to erase losses, and in Thursday’s preview it rises 0.25%. Dow Jones futures are trading up 0.07% and Nasdaq futures are up 0.60%.

The latest corporate results helped the better mood in the markets. Tesla after its earnings report it rises 7% in the premarket. Chevron earns 2.80%, and IBM falls 2%. Among the companies that will present results on Thursday are American Airlines, mastercard and SAP, before opening. After closing they will Intel Y Visa.

The preliminary estimate of US GDP growth for the fourth quarter of 2022 will be released on Thursday, which is expected to have expanded at an annualized rate of 2.6%. In addition, analysts will look at the price data from the growth report. Along with those numbers will be the weekly report on jobless claims, durable goods orders, trade balance, wholesale inventories, new home sales and the Kansas Fed manufacturing index. The amount of data will serve to shape the economic outlook. Good news from the US is sometimes bad for the markets, although this was not the case last week.

Follow the downward trend of the dollar

Earlier in the day, the dollar index (DXY) hit its lowest since April 2022 at 101.50, before bouncing past 101.70. The declines in the dollar have been constant since the Federal Reserve is expected to moderate the rate of interest rate hikes, and given the expectation that the end of the bullish cycle will soon be reached. Next week is the next meeting, so there will be no comments from Fed officials these days.

The treasury bond yields They are modestly up on Thursday, with the 10-year bond yielding 3.48% and the 2-year tranche 4.15%. US data is expected to move this market. Yields are also rising in Europe, at a faster pace.

The European Central Bank it will also decide next week and is expected to continue rising at a rate of 50 basis points. Officials speak in favor of continuing to rise at that rate, which has been supporting the euro. EUR/USD hit month-highs hours ago near 1.0930, before erasing intraday gains.

The bank of canada raised the interest rate by 25 basis points on Wednesday, in line with expectations. The governor affirmed that from now on wait to pause the cycle. This was not a huge surprise and pushed the loonie modestly lower. USD/CAD remains sideways, back below 1.3385, a few pips above where it was before the central bank decision.

In Chili, the central bank is expected to keep the interest rate at 11.25%. In Peru instability and social protests are beginning to hit the economic scene hard. The indicator of economic activity of the Economy of mexico It showed a larger-than-expected slowdown in November, contracting 0.45%.

The metals they are dropping on thursday. The Prayed it set new monthly highs near $1,950, before turning around and correcting towards $1,935. Silver could not exceed $24.00. Cryptocurrencies are losing ground after failing to confirm the jump hours ago. Bitcoin it reached as high as $23,815, the new high of the current rally, and for these minutes, it is back below $23,000. The prices of Petroleum rise less than 1%. The barrel of WTI is located around $80.70. The corrections have been limited in oil prices, which are supported by the weakness of the dollar and the reopening of China, which overshadow the global rise in interest rates.

technical levels

SP500

Panorama
Last Price Today 4024.26
Today’s Daily Change 9.62
Today’s Daily Change % 0.24
Today’s Daily Open 4014.64
Trends
20 Daily SMA 3925.21
SMA of 50 Daily 3934.85
SMA of 100 Daily 3864.52
SMA of 200 Daily 3940.53
levels
Previous Daily High 4018.73
Minimum Previous Daily 3947.66
Previous Weekly High 4014.11
Previous Weekly Minimum 3884.29
Maximum Prior Monthly 4116.92
Minimum Prior Monthly 3761.43
Daily Fibonacci 38.2% 3991.58
Daily Fibonacci 61.8% 3974.81
Daily Pivot Point S1 3968.62
Daily Pivot Point S2 3922.61
Daily Pivot Point S3 3897.55
Daily Pivot Point R1 4039.69
Daily Pivot Point R2 4064.75
Daily Pivot Point R3 4110.76

Source: Fx Street

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