S&P 500: No bounce after sharp drop on Tuesday

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  • European markets coupled with Tuesday’s fall on Wall Street.
  • Oil prices rise despite negative weather.
  • Words of central bankers in the spotlight.

Wall Street futures are falling modestly after Tuesday’s plunge. The dollar remains firm, the euro gains momentum and oil is not affected by the bad weather in the markets.

Recession fears weigh on markets

On Tuesday, the US consumer confidence survey for June showed a hit to the main index from rising inflation, contributing to fears over the economic outlook. The S&P 500 closed down 2.01% and on Wednesday before the open it fell 0.25%.

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The negative climate also reaches the European markets. In London, the FTSE 100 fell 0.75%, the Frankfurt DAX lost 1.93% and in Paris the CAC 40 lost 1.37%.

The inflation remains a key issue throughout the world. It was known that in Spain it climbed in June to 10.2%, the maximum in 37 years. Other data showed a drop in the consumer confidence index in the Eurozone to the lowest since April 2020.

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On Wednesday at 12:00 GMT the preliminary inflation figures for Germany. Half an hour later, a new estimate of US GDP growth for the first quarter will be released (unchanged consensus: -1.5%). At 13:00 GMT a discussion panel will begin in the framework of the forum of the European Central Bankin which Christine will participate lagarde (President of the ECB), Jerome Powell (chairman of the Federal Reserve) and Andrew Bailey (Governor of the Bank of England). On Thursday in Asia, the China PMI report (services and manufacturing) will be published.

The dollar is rising on Wednesday supported by risk aversion. The DXY gains 0.06% and climbs for the second day in a row. The currency that rises the most among the majors is the Swiss franc.

The treasury bond yields do not show significant changes. The 10-year tranche stands at 3.15%, while the 30-year tranche stands at 3.27%. The German 10-year benchmark is at 1.58%.

The metals experienced a rebound from multi-day lows. Gold went from $1,810 to $1,827 in minutes, while silver went from $20.70 to the $21.00 zone. This could anticipate more volatility ahead. Oil prices are unaffected by the drop in markets as they are at multi-day highs.

The crypto market is unable to leave worries behind. The bictoin it is testing levels below $20,000 and looking back at the recent lows.

Among the companies that will present results on Wednesday are General Mills, Bed Bath & Beyond Y paychex. In the pre market the shares of pinterest up 4% before changes in authorities. US shares of NIO, the Chinese car company loses more than 6% before a complaint by accounting.

Technical levels

SP500

Panorama
Last Price Today 3812.57
Today’s Daily Change -9.07
Today’s Daily Change % -0.24
Today’s Daily Opening 3821.64
Trends
20 Daily SMA 3898.04
50 Daily SMA 4023.35
100 Daily SMA 4215.47
200 Daily SMA 4397.19
levels
Previous Daily High 3943.5
Previous Daily Minimum 3818.46
Previous Maximum Weekly 3911.55
Previous Weekly Minimum 3680.14
Monthly Prior Maximum 4305.91
Previous Monthly Minimum 3809.41
Daily Fibonacci 38.2% 3866.23
Daily Fibonacci 61.8% 3895.73
Daily Pivot Point S1 3778.9
Daily Pivot Point S2 3736.16
Daily Pivot Point S3 3653.86
Daily Pivot Point R1 3903.94
Daily Pivot Point R2 3986.24
Daily Pivot Point R3 4028.98

Source: Fx Street

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