- Asian and European markets rising, given an improvement in the economic outlook.
- Wall Street futures slightly lower, the dollar little changed.
- More US data will be out on Friday after Thursday’s GDP report.
After a big rally on Thursday, Wall Street futures are trading moderately lower ahead of new US data, which will be among the last before next week’s FOMC meeting. Economic reports from Europe and the US contribute to the rise in the stock markets. The dollar operates mixed and oil gains momentum.
Futures with modest falls, consolidating weekly gains
On Thursday Wall Street ended with gains of more than 1% after the US data. The good mood continued in Asia where the Hang Seng gained 0.54% and the Nikkei 0.08%. In Europe, the FTSE 100 is up 0.15% and the DAX 0.26%. US stock futures are paring a small part of those gains from yesterday. In the previous one, the S&P 500 falls 0.23% and the Nasdaq 0.45%. Compared to a week ago, the S&P is up just over 2%.
Optimism was affected by the latest corporate results. Before the opening Chevron presented results and its shares fell 1.40%, despite presenting a record annual profit. So did American Express, which is up almost 5%. Among the novelties is Intel, which collapses in the premarket with a drop of 9%, after presenting a complicated outlook.
The market is positioning itself for a week loaded with the decision of several central banks, among which is that of the Federal Reserve. The data published on Thursday in the US were better than expected, with growth in the fourth quarter at an annualized rate of 2.9% and a drop in inflation indicators. This continues to leave the door open for a soft landing in the economy, which has been supporting good mood in the markets.
In the US, the personal income and spending report will be released on Friday, which includes the underlying price index of personal consumption spending, a closely watched indicator of inflation. In addition, there will be consumer confidence and home sales data pending. They will be one of the last reports before the Fed decision.
The dollar trades mixed on Friday, without significant changes. EUR/USD is trading in ranges below 1.0900, GBP/USD around 1.2370 and USD/JPY around 130.00. Both the currencies linked to commodities and those of emerging markets do not show relevant changes.
Next week it will also be the turn of the European Central Bank which aims to raise rates by 50 basis points. In Europe there was another positive surprise to that of the PMIs on Tuesday, with the growth data for Spain, which showed an expansion of 0.2% in the fourth quarter, higher than the 0.1% expected.
The sovereign bond yields They go up in the US and in Europe too. The US 10-year bond yield it is at 3.55%, the maximum in nine days, while the German reference yields 2.27%, the maximum in two weeks.
The central bank of south africa raised the reference interest rate by 25 basis points to 7.25%, less than expected. For its part, the monetary authority Chilean kept it unchanged at 11.25%. The Central Bank of Colombia he is expected to announce a 100 basis point rate hike on Friday to 13%.
The metals they appear weakened on Friday. The silver it could not hold again above $24.00 and corrected downwards. Gold for its part moved away from the highs in months that reached near $ 1950 on Thursday, and was able to hold on $ 1920. Cryptocurrencies were showing no significant changes after Bitcoin managed to recover from a fall in the Asian session, when it reached $22,550 and is trading near $23,000.
The prices of Petroleum rise significantly on Friday. The WTI barrel climbs more than 1.5% and is trading at $82.00, very close to the January highs. The reopening of China together with the US data support current prices. Baker Hughes’ oil rig count will be released on Friday.
current 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.
