S&P 500 futures fall ahead of US data, dollar firm

• The mood of the markets deteriorates in the run-up to the American session.
• Traders awaiting more US inflation data.
• The dollar remains firm, while Treasury yields remain at their highest in months.

Wall Street futures are trading in the red, ahead of a sharp pullback in the past hour. The market waits for new US economic figures as geopolitics play a role again. Metals are under pressure amid a firm dollar and rising Treasury yields.

closing a bad week

Markets in Asia on Friday closed mostly in the red, with the exception of the Nikkei 225 rising 1.29%. The European stock markets operate mixed, far from the maximum and with a downward trend. He S&P 500 rose 0.53% on Thursday but in Friday’s preview, falls 0.65%. Dow Jones futures are down 057% and Nasdaq 0.91%.

In the premarket, the shares of Boeing they fell 3% after documentation problems with the delivery of the 787 Dreamliner aircraft. Beyond Meat jumps more than 12% after reporting lower-than-expected losses. Tesla falls 1.50% while Chevron up 0.35%.

One year after the invasion of Russia to Ukraine, China He called for an end to the war offering himself as a mediator. The rapprochement between the governments of Russia and China increased tensions with the West. Geopolitics returns to center stage, contributing to a deterioration in the mood of the markets.

The German economy contracted 0.4% in the fourth quarter, more than the expected contraction of 0.2%. This implies that the economy is headed for recession, as analysts estimate that it will contract again in the first quarter. EUR/USD is on track for its lowest weekly close since mid-December and is under pressure below 1.0600.

inflation in Japan it reached the maximum in four decades when it rose to 4.3% in January, while the core reached 4.2%. The yen was not affected by the figures as they did not raise any surprises. Meanwhile, Bank of Japan governor nominee Kazuo Ueda continues to present testimony. His comments have not had much of an impact. On Friday he endorsed Kuroda’s policy. USD/JPY is trading at two-month highs above 135.35 ahead of major US data.

In the US, the personal income and expense report will be released on Friday, which includes the core personal consumption spending index reading, a gauge of inflation closely watched by the Federal Reserve. The new home sales report and the University of Michigan consumer confidence report will be out later.

The focus will be on the inflation figures in the report and they could have a wide impact. Higher-than-expected data would encourage expectations of a tougher Fed for longer. This is key for the Treasury bond market. The yields continue with an upward trend. The 10-year bond yields 3.90%, and the 2-year 4.72%, in the area of ​​maximums in months, although without marking new peaks.

He dollar remains strong in the market, with the DXY rising for the fourth day in a row. This advance, plus events in the bond market continue to put pressure on gold. The XAU/USD is at a low for this year below $1,820.

The prices of Petroleum They are paring intraday gains, although they do maintain some bullish momentum. He WTI barrel it trades around $75.70. Cryptocurrencies are trading flat, with Bitcoin in the $23,900 area and Ethereum at $1,650.

Among emerging currencies, the Chilean peso it is the worst so far this week affected by the drop in the price of copper. The dollar registers weekly gains against most. He USD/MXN (Mexican peso) reached its lowest since 2018 below 18.30, but began an upward correction, which for the moment has extended to 18.45. The minutes of the Bank of Mexico warned about the resistance of high inflation, and that the risks continue, to which are added domestic political issues.

technical levels