- Equity markets in red, in a cautious climate.
- The dollar continues with the moderate advance, the DXY reaches a maximum in two weeks.
- Oil prices remain close to $120.00.
The futures of the main Wall Street indices are in negative territory, as are the European markets. Safe-haven demand is on the rise, pushing down government bond yields. The dollar rises steadily, at a moderate pace.
Widespread red, demand for safe assets rises
After a slight rise on Monday, futures on the S&P 500 down 0.82% on Tuesday, those of the Dow Jones 0.69% and those of the Nasdaq 1.08%. In Europe, in London the FTSE 100 lost 0.07%, the German DAX fell 1.02% and in Paris the CAC 40 lost 0.83%.
The actions of Kohl’s They stand out in the premarket with a 10% increase in anticipation of a possible sale announcement. GitLab climbs almost 10% after reporting an increase in profits. Among the companies reporting results on Tuesday is JM Smucker. Dave & Buster’s, Smartsheet and Casey’s.
The cautious climate in the markets prevails and pushes the demand for bonds. Both yields in Europe and the US are down. The US 10-year bond yields 3.01% on Tuesday, after reaching 3.06% on Monday, the highest level since May 11.
In the forex market, the yen is trading at its lowest since 2002 against the dollar, with the USD/JPY unstoppable above 132.50, after rising more than 500 pips in the last seven days. The Australian dollar shows some strength after the decision of the Reserve Bank of Australia to raise the reference interest rate by 50 basis points. The pound does not present unusual movements after the prime minister Boris Johnson overcome a vote of no confidence against him. The dollar measured by the DXY rises 0.36% and stands at 102.80, at a maximum in two weeks.
The calendar of economic indicators shows an unexpected drop in factory orders in Germany in April of 2.7% (against an expected rise of 0.5%), a recovery in the UK S&P Global services PMI from 51.8 to 53.4 and in the Eurozone a rise in June from -22.6 to -15.8 in the Sentix Investor Confidence Index.
For today, the US foreign trade report is the most notable. Janet Yellen, the US Treasury secretary will present before a congressional committee. The Treasury will place debt for 44,000 million dollars over three years. The key figure of the week will be inflation of Friday. This week officials of the Federal Reserve as they are in a quiet period ahead of next week’s FOMC meeting.
The Prayed it is bouncing on Tuesday and reached as high as $1850, though so far unable to assert itself above it, still reflecting some weakness. Silver is trading flat around $22.00, having bottomed at $21.86, the lowest since Wednesday.
The prices of Petroleum they fall modestly less than 0.35% on Tuesday and remain in the zone of recent highs and well above the average price of the last decade. A barrel of WTI hovers around $118.00.
The negative climate in the global financial markets is also seen in the cryptocurrencies. The Bitcoin he loses 5.85% and is back below $30,000.
Technical levels
Source: Fx Street
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