- Markets with some stability, which looks durable.
- The Fed starts the two-day meeting, could raise the rate by 75 basis points.
- The dollar remains firm on the back of Treasury bond yields.
Stocks on Wall Street are trading between gains and losses on Tuesday, trying to stabilize after days of panic and sharp falls. The tone on the day of the start of the Federal Reserve meeting remains cautious.
generalized fear
After the start the S&P is up 0.07%, and the Dow Jones is up 0.11%, while the Nasdaq is trading neutral. In Europe, the main markets show gains of 0.15% on average. The rises represent a rebound after sharp declines and caution remains dominant.
In the US, a rise in wholesale inflation of 10.8% was known in May, slightly below expectations and the reading for April. It did not have a great impact on the market that is focusing on the impact of the current panic and the Fed meeting.
On Wednesday, the decision of the central bank will be known, which is expected to be a rise in the interest rate of 50 basis points. Friday’s inflation data leads to speculation about the possibility of an increase of 75 basis points.
This sent Treasury yields soaring to their highest in years. On Tuesday the 10-year rate is at 3.35% while the 30-year rate is at 3.34%. Certain parts of the curve are inverted. The dollar remains strong in the market supported by yields and also risk aversion.
The pound it is among the worst performing currencies trading at the lowest since 2020 against the dollar ahead of the Bank of England’s decision on Thursday. EUR/GBP is breaking 0.8650 and is approaching 0.8700.
The metals they have stabilized in the last few hours, but continue with a negative trend. Gold trades at $1815 and silver near $21.00. Oil rises steadily with rises greater than 2%, given estimates of a tight supply due to production problems in Libya.
the market of cryptocurrencies It is experiencing the worst moment since 2020. Bitcoin is trading slightly lower on Tuesday after approaching $20,000. Since the peak it has lost almost 70% and the problems for crypto exchanges are adding up.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
