S&P 500: Futures stable, although tensions remain

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  • European markets are recovering, but the climate of caution prevails.
  • The dollar marks maximum in almost 20 years against the euro, remains firm.
  • Commodity prices continue with a negative trend.

Stock markets in Europe are bouncing on Wednesday and Wall Street futures are on neutral ground. The negative climate continues to dominate and is reflected in the soaring dollar, the drop in commodities and raw materials.

Calm before more storm

In Europe, the FTSE 100 rises 1.75%, the DAX 1.52% and the CAC 40 1.60%. The S&P 500, which managed to close on Tuesday in positive with a rise of 0.16% after a strong rebound, lost 0.19% in the previous one. Wall Street’s main indexes fell modestly on Wednesday.

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Treasury bond yields do not show significant variations and remain in the low zone for months. The 10-year tranche yields 2.82% and the German benchmark at 1.18%. The bonds validate gains that reflect a search for refuge and also a drop in expectations of the general aggressive monetary tightening.

The dollar continues to advance and the DXY is at 107.00; for its part, the EUR/USD broke below 1.0200, to levels not seen since December 2002. The euro is affected by doubts about the effectiveness of the European Central Bank in controlling bond yields and in the face of new increases in energy prices in the region. The greenback’s advance is also against emerging market currencies.

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The pound also falls against the dollar, although it remains stable against the euro. This despite the wave of resignations of officials from Prime Minister Boris Johnson, who seems to have his days numbered.

Commodities continue to trend down. Oil validates a drop of almost 10% in one day, while the Prayed trades at $1760, at lows in months. The prices of agricultural commodities are also on the decline. Cryptocurrencies look somewhat stable. Bitcoin remains above $20,000.

The economic calendar ahead shows activity data from the US service sector and the minutes of the latest meeting of the Federal Reserve.

Technical levels

SP500

Panorama
Last Price Today 3821.44
Today’s Daily Change -8.50
Today’s Daily Change % -0.22
Today’s Daily Opening 3829.94
Trends
20 Daily SMA 3818.58
50 Daily SMA 3972.92
100 Daily SMA 4182.49
200 Daily SMA 4382.03
levels
Previous Daily High 3844.02
Previous Daily Minimum 3740.06
Previous Maximum Weekly 3943.5
Previous Weekly Minimum 3737.5
Monthly Prior Maximum 4181.86
Previous Monthly Minimum 3636.65
Daily Fibonacci 38.2% 3779.77
Daily Fibonacci 61.8% 3804.31
Daily Pivot Point S1 3765.33
Daily Pivot Point S2 3700.71
Daily Pivot Point S3 3661.37
Daily Pivot Point R1 3869.29
Daily Pivot Point R2 3908.63
Daily Pivot Point R3 3973.25

Source: Fx Street

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