- Wall Street futures rise modestly.
- Equity markets in Europe advance 0.75% on average.
- The dollar falls, but cuts losses in the last hour.
- Metals are rising again and are approaching recent highs.
Futures on Wall Street and European markets are rising on Thursday, albeit at a moderate pace. The Bank of England raised the rate by 50 basis points, but the pound falls sharply. The metals shine again.
Stocks on the rise, without much conviction
After closing on Wednesday with a rise of 1.56%, S&P 500 futures are up 0.16% on Thursday, while the Nasdaq does 0.28% and the Dow Jones 0.10%. Progress is being modest. In Europethe gains are around 0.75%, matching the US gains of the previous day.
China responded to Nancy Pelosi’s visit by launching 11 missiles around Taiwan in a military exercise. In Europe, a 0.4% drop in factory orders was reported in Germany in June (better than the expected drop of 0.8%). In minutes, the weekly report on requests for unemployment benefits and foreign trade data will be published in the US. As far as Federal Reserve officials are concerned, Loretta Mester and Thomas Barkin will speak on Thursday. On Friday it will be the turn of the official employment report for July with non-farm payrolls.
in the premarket, Lucid Group (manufacturer of electronic cars) falls 13.40% due to the expectation of selling half of the previously planned cars. Among the companies that will present results on Thursday are ExpediaConocoPhillips, NRG Energy, Kellogg’s and Motorola.
The Bank of England announced a rate hike of 50 basis points to 1.75% It is the largest rise in 27 years. Despite the announcement, the pound lost ground in the market. The BoE forecast that the UK will face a long recession starting next quarter.
The BoE expressed in the market that the latest rise in the price of gas implies a risk for economic activity. The energy crisis in Europe is deepening. To the restrictions in the supply by the war, the preparations for the winter, the current heat wave is added.
The prices of Petroleum are trading flat, confirming Wednesday’s drop. This despite the fact that the Organization of Petroleum Exporting Countries and allies reported a production increase of only 100,000 barrels per day.
Among the coins, pound became the worst performer after the BoE meeting and its forecast for the future. The dollar is falling against most of its rivals at a moderate pace, capping the recovery after falling to week lows days ago. In the last hour he cut losses.
Part of the dollar’s weakness has to do with treasury bond yields they have stopped rising and are moving away from Tuesday’s highs. The 10-year bond yields 2.71% and the 30-year bond 2.95%.
Cryptocurrencies have held back the recovery for the time being. The Bitcoin he couldn’t break the $23,500 barrier and is below $23,000.
Metals are rising. XAUUSD climbs 1.20% and trades at $1786, very close to the recent peak. Silver is up 1.43%, with XAGUSD trading above $20.30 and eyeing the $20.50 zone again.
Technical levels
Source: Fx Street
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