- Wall Street futures in negative territory after Friday’s sharp rise.
- Gold remains under pressure and returns below $1,800.
- The dollar remains firm, although without setting new highs.
Markets are trading somewhat calmly on Monday, mostly negative, but without showing great volatility for the time being. Wall Street futures point to a negative open after Friday’s rally.
holding the rebound
In Europe, the main squares do not show a uniform color. While the CAC 40 fell 0.37%, the FTSE MIB rose 0.19%, and the DXY fell 0.64%. The S&P 500 that closed on Friday with a rise of 2.39%, falls in the previous 0.32%. The correction for the moment does not take away a significant part of Friday’s rise.
Between the actions of more movement it reappears Twitter, with a drop in the premarket of 2.15%, after losing 9.67% on Friday. The continuity of Elon Musk’s messages continues to negatively affect the actions of the social network. McDonald’s announced that it will leave Russia after 30 years.
The data from China they were not encouraging and showed the impact of the COVID restrictions. In other news to highlight, the rise in wheat prices of more than 5% after India prohibited exports stands out.
Among currencies, the euro is among the best with a modest rise, boosted by comments from François Villeroy, a member of the Governing Council, who said he expects a “decisive meeting in June” and an “active summer”. The dollar falls slightly and remains in the area of maximums in years.
The yields of Treasury bond do not show big changes. The 10-year tranche yields 2.92% and the 30-year tranche 3.09%, within Friday’s range. Metals take different paths again: while silver reaffirms the rebound, gold finds no bottom. XAU/USD fell to $1,786, the new low in nearly three months, and then bounced back to $1,810. Oil does not register significant changes and cuts part of the advance of last week’s close. WTI falls 0.80% and trades around $109.50.
The big news at the moment is the calm in the markets after days of great volatility. The persistence of financial tensions and fears may anticipate that it is a pause in the turbulence. These days, the economic calendar is calmer, which may lead to more episodes of calm. Comments from central bank officials will continue to be in the spotlight.
Regarding economic data for Monday, the New York Empire manufacturing index stands out and on Tuesday it will be the turn of the most important with the retail sales figures.
The cryptocurrencies they fall again on Monday although they are far from the lows of days ago. Bitcoin struggles to return above $30,000, although without success at the moment.
Technical levels
Source: Fx Street
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