S&P 500: Futures without recovery, with the focus on data

• Wall Street validates Thursday’s losses, pessimism prevails.
• Inflation data may be the key for the day.
• Metals under pressure, the dollar rises.

US markets ended Thursday sharply lower. This is replicated on Friday in Europe. Wall Street futures show no signs of recovery. Attention with the US inflation data.

pessimism returns

The Thursday the S&P 500 closed with a fall of 2.38% and in the futures market on Friday it rose 0.05%. The main Wall Street indices do not register significant variations, thus, on the one hand, they validate Thursday’s fall and are awaiting the US inflation data. In Europe, the FTSE 100 falls 1.15%, the DAX 1.18 % and the CAC 40 yields 1.45%.

Among the companies with the greatest movement in the premarket is DocuSign, which lost more than 20% after reporting a slowdown in growth, and also Stitch Fix, which lost 15% after announcing staff cuts due to a drop in consumption and an increase in losses. Today, among others, North Bud Farms, Mimi’s Rock, and YourWay Cannabis Brands report results.

The European Central Bank announced on Thursday a rate hike planned for July and again stronger in September. This to deal with inflation. Next week it will be the turn of the Federal Reserve. Expectations about the next steps are affecting Treasury bonds. The upward trend in Treasury bond yields comes up against the climate of risk aversion, which favors demand for these securities.

On Friday it will be the turn of the US inflation data for May. The consensus points to a rise of 0.7% in the consumer price index in the month (8.3% annual). Later on, the consumer confidence report from the University of Michigan will be released and in the American afternoon the fiscal figures for May.

The ECB’s announcement did not give strength to the euro. EUR/USD is trading at two-week lows, although on Friday the main guide is dollar strength rising on all fronts except against the yen. The Japanese currency is one of the best performers due to risk aversion. USD/JPY has pulled back slightly from decades highs and is trading below 134.00.

The dollar index (DXY) is up 0.30% and is at a three-week high above 103.50. The Russian ruble remains firm in the zone of maximums since 2018 after the Bank of Russia cut the reference interest rate by 150 basis points.

The metals they are under pressure. XAU/USD loses 0.72% below $1835 in a one-week low and silver falls for the third day in a row, with XAG/USD giving up 1.50% on Friday. Oil prices rise modestly and remain near recent highs. The cryptocurrencies they are stable, with Bitcoin struggling to hold above $30,000.

Technical levels