- Stock markets retreat on Tuesday.
- Metals lose strength, although retain recent gains.
- The dollar index falls for the second day, but moves away from the lows.
Wall Street futures are trading in negative territory, as are most major European markets. Financial markets are moving somewhat calmly, with the focus on Wednesday’s US inflation data.
Markets calm, losing optimism
The S&P futures are down 0.35% on Tuesday, while the main European markets lose 0.40% on average. Most financial asset prices move sideways, without much change. The optimism of the previous days has faded and seems to have paused.
The market awaits with great anticipation US inflation data for July which will be published on Wednesday. The Consumer Price Index is expected to show a decline from 9.1% to 8.7%. That could reinforce the decline seen in surveys of inflation expectations. If an upside surprise occurs, then stocks could take a hit and the dollar get a big boost. Before the ICP data for the US, the data for China and the end of the Eurozone.
Stock market traders have once again set their sights on “meme stocks.” In Tuesday’s preview there are significant falls that follow several days with double-digit increases. GameStop is up 8.50% on Monday and down 2.5% in Tuesday’s preview, AMC down 4.45% and Bed Bath & Beyond falls 1.15% after ending yesterday with a 39% advance. Companies reporting results Tuesday include Emerson, Sysco and Alcon AG.
Among currencies, the dollar is falling modestly although it has erased most of its losses in recent hours, as Treasury yields rebounded. The 10-year bond yields 2.80%, rebounding from 2.74%, while the 30-year tranche returned above 3.00%.
The prices of Petroleum are rising on Tuesday, advancing more than 1%, moving away from recent lows. Metal prices remain in the area of ​​recent highs, with XAUUSD near $1,800 and XAGUSD above $20.50.
The cryptocurrencies are falling, correcting much of the recent advance. The Bitcoin he loses 3.4% and is close to $23,000. Ethereum falls more than 5%.
Technical levels
Source: Fx Street
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