- Equity markets on the rise throughout the world.
- Sovereign bond yields also rise and weigh on emerging market currencies.
- Oil prices rise more than 1%.
Stocks rise in Europe and Wall Street futures are also in the green. The moderate advance was supported by a loosening of restrictions in China due to COVID. The dollar presents mixed results while the yen resumes its decline.
Indices remain far from recent lows
After last week’s strong rise, stock market indices remain far from the lows in recent months. The S&P 500 fell 0.30% on Monday and on Tuesday, before the open, it recovered 0.58%. In Europe, the FTSE 100 rises 1.34%, the DAX 1.01% and the CAC 40 1.38%.
The announcement of a relaxation in the measures to limit the advance of COVID in Chica was a point in favor of optimism.
Coinbase shares fall 10.75% after undergoing downgrades by investment banks. Robinhood falls 3.15% in the premarket after jumping almost 10% on Monday due to the possibility of being bought by another broker. Nike falls 2% after losing 2% yesterday, after reporting that sales practically did not grow in the quarter.
Companies reporting results on Tuesday include Progress Software, AeroVironment, Tsingtao, Enerpac Tool Group and CarMax. In the US, data on home prices and consumer confidence will be published.
In Portugal, the annual forum of the European Central Bank. The main course will be on Wednesday with a panel made up of the highest authorities of the ECB (Lagarde), the Federal Reserve (Powell) and the Bank of England (Bailey). On Tuesday, comments from ECB officials aimed to ratify expectations of rate hikes at the July meeting and the following one in September.
European and US bond yields are rising steadily. The German 10-year bond yields 1.65% (on Friday it had fallen to 1.36%), while the US benchmark is at 3.24%, the highest in almost a week.
The rise in yields, plus the good tone in the equity markets is pulling the yen down, which is the worst performing coin among the most traded. USD/JPY is above 136.00. The rest of the pairs move relatively calmly without showing big changes. The currencies of emerging countries fell on Tuesday, without being favored by the rise in the stock markets and seem affected by the expectation of rate hikes in Europe and the US.
The commodities they also recover in a climate of less pessimism. The copper rises for the second consecutive day and climbs more than 1%. Oil registers an advance of 1.50%, validating Monday’s break. The G7 discusses how to limit Russia’s oil revenues.
The silver advances modestly and climbed to $21.30, while the Prayed it does not rise and goes back to $1820. The yellow metal is limited by the rise in Treasury bond yields.
The Bitcoin he fails to extend the bounce, although he managed to get back to the $21,000 zone. The situation in the crypto market remains complex, with the impact of lower prices being felt.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
