- The climate of caution continues to dominate the financial markets despite the slight rebound in futures.
- Oil prices fall more than 3%, metals also fall.
- The dollar rises but moderately.
- Inflation in the Eurozone sets a new record, US employment data is coming.
Wall Street futures trade with small gains on Wednesday, while in Europe the main squares are falling. The bad mood continues to prevail in the financial markets. Oil slumps and the dollar is firm, but below recent highs.
Rise in futures, but nothing to celebrate
The S&P 500 futures up 0.18% in the previous Wednesday, and those of the Nasdaq 0.52%. In Europe, the main markets operate in negative territory with falls of 0.50% on average. Concerns about the economic outlook, coupled with rate hikes, continue to weigh on investors.
It was known on Wednesday that inflation in the Eurozone marked a new maximum in August at 9.1%. At the same time, comments about strong increases in interest rates by the European Central Bank continue. The other issue in Europe is the energy crisis, with a new stoppage in the transport of gas by Nord Stream from Russia to Germany for three days as a result of maintenance operations.
The bond yields they are rising on both sides of the Atlantic, with several at their highest in years. This reflects market expectations that interest rates will continue to rise.
On Wednesday will be published in the US the ADP Employment Report, the first under a new methodology. On Tuesday the number of job advertisements unexpectedly rose to 11.2 million in July. On Friday it will be the turn of the official employment report with non-agricultural payrolls (consensus: +300,000).
Oil prices fall more than 3% on forecasts of a bigger surplus in the market for the rest of 2022. Energy stocks are falling significantly affected by the decline in oil prices. Exxon Mobil loses 2.34% and Chevron falls 2.06%. Among the companies reporting results on Wednesday are Okta, Barnes & Noble Education and Donaldson.
The metals They fall hard again. Gold approached $1700 while silver tested levels below $18.00. The cryptocurrencies they remain in positive territory despite the stronger dollar, although still in the danger zone. The Bitcoin trades over $20,000 and Ethereum rises 2.30%.
Technical levels
Source: Fx Street
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