- Stocks in the US retreat slightly after Wednesday’s rally.
- Metals are holding on to recent gains as the dollar looks to stabilize.
- After the Fed meeting, the focus shifts to economic data.
The day after another aggressive rate hike by the Federal Reserve, Wall Street futures are falling, paring a small part of Wednesday’s advance. In Europe there are mixed results. The dollar tries to recover positions.
lower the foam
The Federal Reserve on Wednesday it raised the rate again by 75 basis points, as expected. Powell reaffirmed the commitment to lower inflation and the market also saw signs that there could be a slowdown in the pace of adjustment which was celebrated.
The S&P 500 ended up 2.62% and the Nasdaq soared 4.06%, futures on Thursday are down 0.23% and 0.59% respectively. In Europe, there is no generality and the main squares do not show great variations.
The focus of operators and analysts after the Fed, returns to the results and economic data. In minutes there will be preliminary inflation figures for July Germany and of US second quarter growth. The second consecutive quarterly contraction is not ruled out. On Thursday, US President Joe Biden will meet with his Chinese counterpart, Xi Jinping.
JetBlue agreed to buy Spirit (up 4%) for $3.8 billion, creating the fifth largest US airline. Meta Platforms (Facebook) rose 6.55% on Wednesday but fell 4.05% in the premarket on Thursday, after having the first drop in revenue in its history; the company warned of budget cuts after declines in advertising revenue.
Thursday will be one of the busiest days for presentation of results of the second quarter. It is the turn, among other companies, of Manzana, amazon, IntelHoneywell, MasterCard, PfizerSouthwest Airlines, Northrop and Comcast.
Enter the coins, the euro it is the worst performer among the G10. Business confidence data from the Eurozone did not help. EUR/USD erased most of post-Fed gains. Yen remains firm supported by stable Treasury yields. The dollar has stopped falling against commodity-linked currencies in the data preview.
The cryptocurrencies they managed to rebound despite the rise in rates dragged down by the advance in the equity markets. The Bitcoin trades on $23,000.
Metals have been among the most favored after the Fed meeting. Gold climbed to $1748, the highest in almost three weeks and the silver it shot up to $19.50. Oil prices are also strong, rising more than 2% on Thursday, adding to Wednesday’s gain of about 3%.
Technical levels
Source: Fx Street
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