- Wall Street futures fell, with Nasdaq futures shedding more than 1%.
- The season for presenting corporate results is picking up pace.
- The dollar is trading sideways, commodities are down and sovereign bonds are up.
Wall Street futures point to a negative opening, which would mark a correction after the good mood of recent days. In Europe, the main markets fell by around 0.20%. Investors with an eye on corporate results. The dollar continues to move in ranges.
Waiting to see what’s up
Investor mood is dominated by several factors. Already factoring in the fact that the Federal Reserve will soften interest rate hikes, the economic data is mixed, and now the focus is on corporate results for the fourth quarter, ahead of the US GDP data to be released on Thursday.
In Asia, trading volume remains low due to the holidays. In Europe, the FTSE 100 falls 0.12%, the DAX 0.37% and the CAC 40 loses 0.33%. The S&P 500 fell 0.07% on Tuesday and futures were down 0.80% in Wednesday’s preview. Dow Jones futures lose 0.55% and Nasdaq 1.20%.
Microsoft falls more than 1% after reporting the lowest sales in six years. News Corp. rises 4% after Rupert Murdoch announces that he will not seek a merger with Fox. Johnson & Johnson falls 0.30% after reporting a 25% drop in profits. AT&T rises 2.40% and Amazon falls 2.23%. Among other companies, it will be the turn of the quarterly results of Boeing, Abbott, and Amphenol. After the close on Wednesday, they will report TeslaIBAM, Levi Strauss and CSX.
Germany It said it will make an initial shipment of 14 Leopard 2 tanks to Ukraine, after weeks of international pressure.
The treasury bond yields They are falling with the 10-year tranche at 3.42%, the minimum since last Friday, and the 2-year tranche yields 4.14%. In Europe they are also going backwards. The demand for bonds is boosted in a context of decline in the stock markets. The US will issue 5-year debt.
The aussie leads the board
The aussie It is among the best performing currencies on Wednesday, after Australian inflation data came in higher than expected. The Consumer Price Index (CPI) rose 1.9%, more than the 1.6% of the market consensus, taking the annual rate to go from 7.3% to 7.8%, the highest level since 1990. Inflation without volatile components reached 6.9%, higher than the 6.5% consensus. AUD/USD reached as high as 0.7120, the highest in five months before turning back. The data reaffirm the expectations that the Reserve Bank of Australia will raise interest rates next week.
In New Zealand inflation figures They were also higher than expected, but not by much. The CPI rose 7.2% compared to a year ago, higher than the 7.1% consensus. NZD/USD is trading neutral around 0.6480, while AUD/NZD has soared to its highest since November topping 1.0900.
The dollar operates on mixed terrain. The impact of lower yields is being overshadowed by weak risk sentiment. The DXY is hovering around 102.00, still looking closely at the lows in recent months. EUR/USD is trading negative at 1.0870, after retesting levels above 1.0900, while GBP/USD is around 1.2300. USD/JPY is at daily lows below 129.70, with the yen supported by rising sovereign bonds and lower equities.
The euro has extra support after Tuesday’s positive PMI data, which supports the outlook for more interest rate hikes from the European Central Bank. Germany’s IFO survey for January was below expectations. EUR/GBP is trading firm above 0.8800 and EUR/CHF is down but still above 1.0000.
The bank of canada will announce its monetary policy decision on Wednesday, which is expected to be an increase in the reference interest rate of 25 basis points from 4.25% to 4.50%. There are analysts who point out that it could be the last rise and even others do not rule out that today there will be a pause in the cycle of rises. USD/CAD enters the meeting trading in ranges around 1.3370.
The metals they are regressing at a slow pace. The Prayed it operates in the area of $1,925, while silver is at $23.35. Oil prices do not show significant changes, although they maintain a certain bearish tone. The barrel of WTI is at $80.45. Cryptocurrencies halted the correction from the highs in months. Bitcoin it is trading at $22,700 after failing to hold above $23,000 and Ethereum failed to stay above $1,600.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
