S&P 500: Markets continue to celebrate Powell’s words, the dollar at the lowest in months

• Powell gives clear signs of a softening in the pace of the Fed’s hikes.
• Stock markets celebrate Powell’s words.
• Commodities hit weekly highs as dollar remains weak.

Stock and commodity markets are uphill and clinging to recent gains, supported by Powell’s near-confirmation that interest rates will continue to rise but more moderately. The dollar weakened again and raw materials rise strongly. Key data coming.

Indices at maximums in months

In Asia, the main markets closed gains on average of 0.45%. In Europe, the FTSE 100 gains 0.09%, the DAX rises 0.77% and the CAC 40 0.17%. The S&P 500 closed up 3.10% on Wednesday and futures are trading slightly lower 0.05%.. The index hit its highest since September and had the first close above the 200-day moving average since April.

The president of the Federal Reserve, Jerome Powell, pointed out on Wednesday that the central bank will soften interest rate hikes at the next meeting, although he warned that they will have to continue raising for a while and remain in restrictive territory to control inflation. Although it was not a big news, this triggered a rally in the markets and weakened the dollar.

Despite the advance of COVID cases in China, the country continues to aim for a relaxation in its policy to control the virus. This also helps the good mood of the markets.

Regarding economic data, in Germany retail sales fell more than expected in October by 2.6%. The final reading of the Eurozone Manufacturing PMI was revised down from 47.3 to 47.1. Now the focus is on the US.

The eyes of the market are set at this time on what will be the report of personal income and spending, which have among its key indicators the underlying price index of spending on personal consumption. The latter is closely followed by the Federal Reserve and the figures will serve to shape the Fed’s monetary policy expectations. In addition, the weekly report on jobless claims, the ISM Manufacturing and construction spending will be released. US President Joe Biden will meet his French counterpart Emmanuel Macron at the White House.

In the premarket, the shares of costco they fall almost 3% before a warning of a drop in sales in November. Okta is up 14% and Splunk is up 9%. Tesla rises 0.53%. Among the companies reporting results Thursday are Toronto-Dominion Bank and Dollar General Corporation.

Metals, oil, cryptocurrencies and bonds: all on the rise

The dollar It arrives at these data with great weakness after Powell’s words and affected by the drop in Treasury bond yields. The 10-year tranche yields 3.59%, the lowest since early October. The German reference is at 1.81%, the minimum in a week.

The and in it is one of the best performing G10 currencies, with USD/JPY continuing the correction from decade highs and approaching 136.00. Commodity-linked and emerging market currencies are advancing on Thursday ahead of the data, against the backdrop of broad-based dollar weakness.

Commodities rise significantly, holding on to recent gains. The Prayed is testing the November highs above $1780, while the silver it rises modestly on Thursday but begins to hold above $22.00.

The cryptocurrencies they even add to the general rally. Bitcoin returned above $17,000 and Ethereum is trading lower but above $1,280.

The prices of Petroleum They are rising supported by the optimistic climate in the markets. The WTI barrel exceeded $81.50 and gains 1.30% on Thursday. The European Union has asked its members to cap the price of Russian oil at $60, the Wall Street Journal reported, based on sources familiar with the matter.

technical levels