S&P 500: Sharp fall in futures, closing the worst semester in decades

• European markets and Wall Street futures plummet.
• Bad expectations of global growth weigh on the mood of investors.
• Metals, cryptocurrencies and oil down, at lows in days.

Pessimism is taking over the markets again. Falls of about 3% are recorded in Europe and Wall Street futures lose more than 1%. Raw materials are also under pressure.

Bad day to end a bad semester

In London, the FTSE 100 falls 1.97%, in Paris the CAC 40 loses 2.85%, and in Frankfurt the DAX yields 2.84%. S&P 500 futures fall 1.55% while those of the Nasdaq fell 1.75%. The numbers speak for themselves.

In the forum of the European Central Bank, the head of the Federal Reserve He stated that the process of lowering inflation can be painful. The message from the central bankers pointed out that the priority now is inflation and that a greater monetary adjustment is coming. This is contributing to the negative sentiment in the markets ahead of the worsening of growth expectations.

Among the currencies dollar remains firm in the context of risk aversion. DXY is at the 105.50 zone, at multi-day highs and close to this year’s peak. The yen is among the best performers helped by lower sovereign bond yields. USD/JPY pulls back after hitting decade highs.

Demand for safer assets continues to push bonds higher. The 10-year tranche of the Treasury yields 3.04%, the lowest level since June 22, while the German benchmark is at 1.39% (down 7.95% on Thursday).

The optimistic data China, with the official PMI for the non-manufacturing sector rising from 47.8 to 54.7 in June did not help to change the tone of the markets. On Friday it will be the turn of the Caixin PMI for the manufacturing sector. In France, inflation rose more than expected to 6.5% (annual) in June, one more piece of data that suggests that there is no slowdown in prices in the Eurozone. A drop in the unemployment rate in the Eurozone in May was also known.

In the US, the personal income and spending report will be published on Thursday. It will also include the core price index of personal consumption expenditure, a measure of inflation closely watched by the Fed. The data may have an impact on the market, although in panic mode, traders may overlook the figures. In addition, the weekly report of unemployment subsidy requests will come out.

The largest companies do not escape the declines in the stock markets. amazon falls 1.87%, Manzana 1.77%, microsoft 1.95% and Tesla 2.08%. Among the companies reporting results Thursday are Walgreens, Micron, Constellation Brands, and Accolade.

No escape for cryptos, metals and oil

Oil prices also fall significantly, going from weekly highs to multi-day lows in a few hours. The Organization of the Petroleum Exporting Countries and its allies are gathered and a modest rise in production quotas is expected.

The Prayed It falls 0.70% and operates at the $1805 zone, at its lowest since May 16, testing a key support that if given way could lead to greater volatility and a sharp drop. Silver falls 1.50% to $20.45, a level not seen since July 2020.

The cryptocurrency market he can’t lift his head. The Bitcoin It trades below $20,000, and is testing levels below $19,000. CoinbaseGlobal fall more than 5%.

Technical levels