S&P 500: Futures try to recover after three days of losses

• European stocks advance while Wall Street futures do not register large variations.
• Calm in the markets in the first half of Friday.
• Limited runs on currencies, save for the yen drop.

Wall Street fell again on Thursday and futures show a small rise on Friday. In Europe, stocks advance more firmly. The dollar presents mixed results, while the yen is again under pressure. Commodities continue to advance despite caution in equity markets. Sovereign bonds fall amid comments from central bank officials.

Investors between mixed data and high rates

European markets are rising, with the IBEX 35 leading with an advance of 1.12%, followed by the CAC 40 with gains of 0.62% and the FTSE 100 up 0.16%. The S&P 500 lost 0.76% on Thursday (third consecutive daily drop) and in Friday’s preview, futures point to a 0.11% rise. Dow Jones futures are down 0.10% and Nasdaq futures are up 0.45%.

alphabet, the parent company of Google, announced that it plans to cut approximately 12,000 jobs (6% of its staff); the shares in the previous rise 3.40%. Netflix rises 6% after presenting results. The co-founder of the streaming company, Reed Hastings will step down as CEO and will be replaced by his two partners, Ted Sarandos and Greg Peters. Among the companies due to present results on Friday are State Street, and Northern Technologies.

The different markets move without a clear harmony. While Wall Street fell on Thursday, commodities rose and emerging currencies fell. This reflects the moment in the market, with great uncertainty about the future economic outlook, which is being disputed between those who see a recession ahead and others a soft landing. They also add what they estimate that the central banks will end up stopping raising rates to support the economy. The latest economic data contributes to this confusion, the US being a clear example: negative signals on Wednesday with lower retail sales and industrial production; and on Thursday, positive with jobless claims dipping to their lowest in months and the Philly Fed rebounding more than expected. There are diverse perspectives, which are reflected in the lack of a general direction.

Yen down, dollar mixed

Among currencies, most currency pairs are moderately changed on Friday from Thursday’s closes. The dollar presents mixed results. The worst performer is the yen, which remains volatile after the Bank of Japan’s decision a few days ago. USD/JPY rises more than 150 pips and approaches 130.00, EUR/USD remains above 1.0800 and GBP/USD falls below 1.2350.

In Japan it was known that core inflation reached 4% in December, the highest level in 41 years. The Governor of the Bank of Japanhe spoke in a panel at the Davos forum and mentioned that the decision to stay the course without changes, reaffirming the ultra-accommodative policy, was not a mistake.

The managing director of the International Monetary Fund, Kristalina Georgievaand the president of the European Central Bank, christine lagarde. The latter stated that her “mantra” on current monetary policy is to “stay the course.” The euro is rising against its main rivals, supported by recent comments by several ECB officials, which go against a report a few days ago that indicated that the central bank, after raising interest rates in February by 50 basis points , will soften the rhythm of the rises. In turn, the minutes of the last meeting published on Thursday showed that several members initially wanted to seek a 75 basis point hike in December.

The officials of the Federal Reserve they continue to say that more increases and a restrictive policy are needed for a while. This, plus the above from the ECB, is pushing up sovereign bond yields in Europe and the US.

In it United Kingdom a drop in minority sales in December of 1% was known, which was surprising since an increase of 0.5% was expected. In Germany, the Producer Price Index fell 0.4% in December, less than the expected decline of 1.2%. The annual rate went from 28.2% to 21.6%. In Canada the retail sales report for November will be released and in the US the existing home sales for December, which was expected to drop from 4.09 million in November to 3.95 million in December.

Bitcoin it is holding on to recent gains and trading in ranges, close to $21,000 and Ethereum does the same in the $1,550 area. The Genesis cryptocurrency broker filed for bankruptcy, being one more victim of the FTX crash.

The prices of Petroleum they rise almost 1%, with the barrel of WTI operating in the area of ​​$81.00. The Prayed and the silver are unchanged, after major increases on Thursday. XAU/USD is in the $1930 zone and XAG/USD is once again trying to break above $24.00.

technical levels