- European markets and Wall Street futures fall on Friday.
- Risk aversion and rise in bond yields boost the dollar.
- Gold at weekly lows in the $1,750 area.
Stock markets around the world are falling on Friday, as a cautious climate favors the dollar. Despite this, sovereign bonds are also falling on expectations that central banks will continue to raise interest rates.
Stock markets fall, currencies reflect greater risk aversion
The main Wall Street indices managed to close in the positive on Thursday, but in the preview on Friday they are already giving back those increases. The futures of S&P 500 are falling 0.85%while those of the Dow Jones lost 0.72% and those of the Nasdaq lost 1.02%.
The pessimistic expectations about the world economy once again dominate the mood in the markets. At the same time, the highest inflation in decades continues to prompt central banks to continue monetary tightening. Both officials from the Federal Reserve and the European Central Bank confirmed that they will continue to raise rates.
The exception is Turkey that on Thursday cut the interest rate in basic cinema points. The USD/TRY rises again and trades above 18.10, on the way to a record close.
The cautious climate together with the rise in yields is driving the dollar in the market. The DXY trades above 108.00, up 0.50%. The 10-year US bond rate stands at 2.98%, and the 30-year one at 3.20%. European bonds are also falling.
Oil prices are pulling back, trimming Thursday’s gain. The barrel of WTI it yields 1.70% and trades below $89.00. Both gold and silver are still downhill and hit new lows.
The cryptocurrencies they are taking the worst part on Friday with casualties that exceed 10%. Bitcoin falls 8.35% and is below $21,500, while Ethereum loses 9.35%.
Technical levels
Source: Fx Street
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