- Traders focus on US July inflation data.
- Stock markets in Europe with mixed results, slight variations.
- Wall Street futures rise about 0.25%.
- The dollar with some weakness, as well as metals.
Wall Street futures are rising modestly after Tuesday’s drop. There is general stability in the financial markets awaiting the US inflation data for July, which includes bonds and currencies.
calm before storm
The S&P 500 closed Tuesday down 0.40%, Y in the preview on Wednesday it rises 0.25%. In Europe, most stock markets operate on neutral ground. Calm encompasses almost all assets. Markets are in standby mode, with the focus on inflation data.
The US July Consumer Price Index (CPI) to be released at 12:30 GMT. The market consensus is for a monthly rise of 0.2% and for the annual rate to go from 9.1% to 8.7%. For its part, the core ICP is estimated to have risen 0.5%, which would take the annual rate from 5.9% to 6.1%.
Surprises with higher-than-expected data could lead to a drop in the stock markets and a rise in the dollar, given greater speculation with a Federal Reserve more aggressive. While figures significantly lower than expected could favor the continuation of the dollar’s decline.
The report is expected cut with low volatility hours in the financial markets with an impact that could be felt both in currencies, metals and the fixed and variable income markets. On Thursday there will be US inflation figures again with the Producer Price Index.
Other US data will be published on Wednesday, including wholesale inventories for June (consensus: +1.9%), and the fiscal result for July. Speaking in public are Charles Evans, the president of the Chicago Fed, and Huw Pill, the chief economist of the Bank of England.
The energy crisis in Europe continues to worsen as steps are taken to prepare for a winter with limited gas supplies. The topic at this time was the Rhine River, which would become impassable by losing a key level of water.
In China a rise in inflation of 0.5% in the CPI was known in July, taking the annual rate to 2.7%, the highest level in two years, although below the expected 2.9%.
Elon Musk he sold $6.9 billion worth of Tesla stock, he said to avoid a hard sell if he were forced to buy Twitter. In the pre-market, Twitter advances 3.40% and Tesla 1.40%. BuzzFeed loses 6% after reporting a larger-than-expected loss. Roblox it plummets 15% in the premarket in the face of a sharp slowdown in revenue. Companies reporting results on Wednesday include DisneyBumble, Wendy’s and Nio.
Bonds, currencies and metals also calm
In the Treasury bond market, the 2-year rate (3.29%) remains above the 10-year rate (2.79%) by almost 50 basis points. This usually reflects recession expectations. The bond market, like the rest, is stable before the inflation data.
The prices of Petroleum they erased Tuesday’s jump and are approaching the lows of the week. The barrel of WTI after approaching $92.00, it is close to $89.00, losing 1.50% on Wednesday.
Among currencies, the dollar is losing ground modestly, while the Swiss franc is among the best performers. The variations are not significant, with low volatility before the key event of the day. EUR/USD is above 1.0200, while GBP/USD is trying to recover 1.2100 and USD/JPY is hovering around 135.00.
Metals have lost steam on Tuesday after hitting weekly highs on Tuesday. Gold was unable to break above $1,800 and fell as low as $1,785, while XAG/USD from reaching $20.75 dropped to the $20.30 zone.
The recovery of cryptocurrencies continues to lose steam. The Bitcoin he is looking to recover the $23,000. Coinbase shares fall more than 10% after reporting its second losing quarter.
Technical levels
Source: Fx Street
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