- Stocks with mixed performance in Europe, rise in the US.
- European and Treasury bonds rise, reflecting fears.
- Oil validates recent fall, metals continue with a bearish bias.
Wall Street futures are in positive territory on Thursday, but the climate of caution prevails due to fears about the global economic outlook. Eurozone PMI data added to the pessimism.
Green, but not so strong
The futures of S&P 500 rose 0.75% and those of the Nasdaq almost 1% on Thursday. In Europe, the FTSE 100 advanced 0.18% while the DAX fell 0.30%. Investor sentiment was affected by Eurozone PMI data June, which showed a larger-than-expected slowdown, sowing concern about the economic outlook.
Eurozone PMI data pushed European bonds higher. Yields fell to two-week lows. The euro fell after the economic numbers. The context continues to favor and inwhich rises again throughout the market, which for now, removes the possibility of an intervention.
Jerome Powell, the chairman of the Federal Reserve will speak again before another congressional committee. Yesterday he warned that raising interest rates quickly could lead to a recession. Treasury bond yields also fell. The 10-year tranche stands at 3.10%, the lowest level in almost two weeks.
In terms of US economic data, the weekly jobless claims report, current account data, the preliminary S&P Global PMI for June and the June Kansas Fed manufacturing index will be released on Thursday.
The prices of Petroleum they rise slightly on Thursday, and are validating part of the recent drop, staying away from recent peaks. Despite this, energy prices in Europe rose to December’s highs. Germany warned that Russia could cut off gas supplies to the region, which could lead to a major crisis. In the US, President Biden asked Congress to suspend the federal fuel tax for three months.
The commodity prices fall again, including agricultural and metals. Gold is trading around $1830, while silver is at a one-week low below $21.20.
The central bank of Turkey kept the reference interest rate at 14%, while in Norway rose by 50 basis points. As expected, in Indonesia it was unchanged at 3.5%. It is expected that Mexico announce today a hike of 75 basis points to 7.75%.
The cryptocurrencies they are mostly up on Thursday, although they are not out of the danger zone. Bitcoin remains above 20,000, but fails to break above 21,000.
Among the companies that will present results on Thursday are FedEx and Darden.
Source: Fx Street
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