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S&P 500: Futures down modestly after holiday, markets relatively calm

  • Wall Street futures point lower after the holiday.
  • Investors prepare for corporate results.
  • Growth in China in 2022 is the lowest in decades, but data exceeds expectations.
  • Forex markets move sideways, in small ranges.

Wall Street futures are falling Tuesday after Monday’s holiday. Markets are moving relatively calm with investors awaiting more corporate results. Dollar modestly higher as metals extend slow downward correction.

Calm return after the holiday

In Asia, the stock markets closed with mixed results. The Hang Seng lost 0.78% and the Nikkei 225 rose 1.23%. In Europe, the FTSE 100 falls 0.29%, the DAX loses 0.11% and the CAC 40 loses 0.21%. US stock futures are trading in the red. In the previous one, the S&P 500 falls 0.20%, the Nasdaq 0.33% and the Dow Jones 0.16%.

In the pre-market, Pfizer falls 1.40%, and Wells Fargo 1.25%, while Tesla rises 2%. On Tuesday the presentation of corporate results will pick up pace and it will be, among other things, the turn of Morgan Stanley, Goldman Sachs, Citizens Financial Group Inc, Interactive Brokers and United Airlines.

Economic data of China which were better than expected, despite showing that growth for 2022 was 3%, below the 5.5% target and the second lowest since the late 1970s. Industrial production in December expanded 1.3% ( greater than the expected increase of 0.1%), retail sales fell 1.8% (-9%), and GDP stagnated in the fourth quarter (-1.1%).

In it United Kingdom new railway stoppages were announced for February. Better-than-expected labor market data was released. The unemployment rate held at 3.7% in December, while income rose 6.4% in the three months to November from a year ago. The data supports the possibility of significant interest rate hikes by the Bank of England. This boosted the British pound. GBP/USD is trading above 1.2250 and EUR/GBP is back below 0.8840 after approaching 0.8900. Inflation figures will be released on Wednesday. The Consumer Price Index (ICP) is expected to drop from 10.7% to 10.6%.

Much of the attention of the markets is focused on the meeting of the bank of japan of two days. The decision will be known on Wednesday. It is the penultimate meeting chaired by Governor Haruhiko Kuroda. In the run-up to the meeting, the yen reached maximums in months, given the possibility of a change. Extreme volatility is expected for the Asian session on Wednesday. Also for Japanese bonds. The 10-year bond yield continues to push against the new 0.5% limit. USD/JPY rises on Tuesday and reached levels above 129.00, but the trend remains firmly down.

In Canada, the inflation figures for December will be published on Tuesday. A drop in the annual CPI is expected from 6.8% to 6.3%. The USD/CAD trades unchanged from Monday’s close.

In the US on Tuesday, the publication of the Empire manufacturing index and on Wednesday it will be the turn of the industrial production and retail sales reports. As far as the Federal Reserve is concerned, John Williams of the New York Fed will be speaking publicly on Tuesday. The dollar on Tuesday it operates without major changes and maintains the tone of weakness. The Davos World Forum is taking place in Switzerland.

The cryptocurrencies confirm recent progress. Bitcoin it trades at $21,250 and Ethereum at $1,570. Metals are falling slightly, with the Prayed at $1,910 and the silver at $24.10. Oil prices rise on Tuesday. The WTI barrel it is close to recent highs above $80.00.

technical levels

SP500

Panorama
Last Price Today 3992.12
Today’s Daily Change 1.04
Today’s Daily Change % 0.03
Today’s Daily Open 3991.08
Trends
20 Daily SMA 3874.4
SMA of 50 Daily 3926.7
SMA of 100 Daily 3862.74
SMA of 200 Daily 3955.9
levels
Previous Daily High 4000.1
Minimum Previous Daily 3977.42
Previous Weekly High 4003.12
Previous Weekly Minimum 3869.65
Maximum Prior Monthly 4116.92
Minimum Prior Monthly 3761.43
Daily Fibonacci 38.2% 3986.08
Daily Fibonacci 61.8% 3991.44
Daily Pivot Point S1 3978.97
Daily Pivot Point S2 3966.85
Daily Pivot Point S3 3956.29
Daily Pivot Point R1 4001.65
Daily Pivot Point R2 4012.21
Daily Pivot Point R3 4024.33

Source: Fx Street

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