S&P 500: Futures rise after the holiday, volatility in commodities

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  • Wall Street in positive, facing the return to normality after the holiday.
  • Volatile day for metals and oil.
  • The dollar with mixed results, the pound strengthens and the yuan continues to fall.

Wall Street futures are trading in the green, and European markets are also mostly higher, supported by measures to mitigate the impact of the energy crisis. The dollar trades without a clear direction, while oil and metals move with high volatility.

Post-holiday relief

In Europe, the DAX is up 0.91% and the FTSE 100 is up 0.17%. S&P 500 futures up 0.75%, those of the Dow Jones 0.75% and those of the Nasdaq 0.74% after the holiday on Tuesday. Treasury bond yields do not show significant variations.

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In Europe, the energy crisis continues to be the focus of attention. Russia continues to cut gas flow to Germany via Nord Stream 1 demanding that sanctions be lifted.

The UK will have a new Prime Minister today: Liz Truss. Announcements on energy prices and cabinet announcement are expected. There is speculation with a price freeze for energy bills for families for 18 months.

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The pound receives the new authority in recovery mode. GBP/USD approaches 1.1600 and EUR/GBP continues to pull back from monthly highs towards 0.8650. The European Central Bank will announce its monetary policy decision on Thursday. For days, a rise of 75 basis points has been discounted. The dollar shows mixed results on Tuesday, while the Chinese yuan continues to weaken with the USDCNH getting closer to 7.00.

The Reserve Bank of Australia raised the benchmark interest rate by 50 basis points, in line with expectations; and gave no sign that a break is coming. The Aussie was not affected by the decision. In a significant way. AUD/USD is trading around 0.6780. Early on Wednesday the second quarter GDP growth reading will be out and China will release foreign trade data for August.

The US economic data calendar for Tuesday shows ahead the S&P Global PMI index for the services sector and also the ISM for the same sector.

The Organization of the Petroleum Exporting Countries and its allies announced Monday a production cut of 100,000 barrels per day in October. This pushed prices up but only momentarily. The barrel of WTI falls on Tuesday more than 3% from the peak of the day and is approaching recent lows.

The metals rise on Tuesday in a day with high volatility. XAU/USD climbed as high as $1,726 before returning to the $1,710 area while XAG/USD only reached as high as $18.58, only to drop to $18.30 a few minutes later. The cryptocurrencies They are going up on Tuesday. Bitcoin climbs 1%, although it still cannot clearly hold above $20,000.

Technical levels

SP500

Panorama
Last Price Today 3952.86
Today’s Daily Change 15.07
Today’s Daily Change % 0.38
Today’s Daily Opening 3937.79
Trends
20 Daily SMA 4132.5
50 Daily SMA 4017.56
100 Daily SMA 4026.86
200 Daily SMA 4269.59
levels
Previous Daily High 3940.44
Previous Daily Minimum 3899.79
Previous Maximum Weekly 4069.66
Previous Weekly Minimum 3901.19
Monthly Prior Maximum 4323.44
Previous Monthly Minimum 3952.37
Daily Fibonacci 38.2% 3924.91
Daily Fibonacci 61.8% 3915.32
Daily Pivot Point S1 3911.57
Daily Pivot Point S2 3885.36
Daily Pivot Point S3 3870.92
Daily Pivot Point R1 3952.22
Daily Pivot Point R2 3966.66
Daily Pivot Point R3 3992.87

Source: Fx Street

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