- Futures rising, European markets climb more than 1% on average.
- Oil prices fall again, losing more than 2%.
- Metals rise 1%, gold hits 6-1/2-month highs.
- Ahead: US ISM Manufacturing and Fed minutes.
A better mood in the markets is boosting stocks in Europe and also on Wall Street, where indices point to a positive open after Tuesday’s low. The dollar loses much of the recent gains. Metals and bonds rise, while oil finds no support.
Recovering after setback at the start of the year
The inflationary deceleration data in Europe help the better mood and the rally of the shares. The FTSE 100 is up 0.58%, while the DAX is up 1.55% and the CAC 40 leads with 1.70%. The S&P 500 closed 0.40% lower on Tuesday and climbed 0.49% in Wednesday’s preview. Dow Jones futures gain 0.35% and Nasdaq 0.73%.
The actions of Tesla they rise almost 2% in the previous one, after the fall of 12% on Tuesday. Manzana it lost 3.75% and reached lows since June 2021, in the premarket it rises 0.98%. Microsoft falls 2% in the previous one. Among the companies due to report results on Wednesday are Unifirst, Landec Corp and Simulations Plus.
The economic calendar for Wednesday shows the Federal Reserve minutes as a key event. There, analysts will look for clues about the future of monetary policy, which will have an impact on expectations and therefore on the markets, through what happens with bond yields. Regarding economic numbers, the ISM Manufacturing for December and the job offers report will be released. In China The Caixin PMI Services Index for December will be released on Thursday. On Thursday it will also be the turn of the ADP private employment report and on Friday the official US employment report with non-farm payrolls and the unemployment rate.
The metals they have trimmed gains, but are up about 1% on Wednesday. Gold reached 6 1/2-month highs above $1,860, while silver neared Tuesday’s high and is trading firm above $24.00. Gold’s advance is supported by technical factors, the weakness of the dollar and the rally in sovereign bonds.
The 10-year treasury bond yield it is at 3.68%, far from the peak of 3.90% days ago, while the two-year one is at 4.33%. The German reference to 10 years falls 4.80% and is at 2.26%, the minimum since December 20.
The cryptocurrencies they are favored by optimism and are gaining ground. Bitcoin trades at $16,850, while ethereum reached $1,250, with an advance of more than 3%.
Where optimism did not reach is oil prices that continue to decline. The WTI barrel falls 2.60% and trades below $75.00.
The dollar is falling, erasing most of Tuesday’s strong advance. The DXY falls 0.56%, after getting back above 104.00 in the last hour. EUR/USD reached as high as 1.0635, bouncing over 100 pips from Tuesday’s low. GBP/USD reached as high as 1.2080, while AUD/USD topped 0.6870. Emerging market currencies are favored by the rise in the markets. The USD/MXN broke below 19.30, hitting its lowest in a month.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
