- Wall Street futures point to an opening with gains of 1.20% on average.
- Europe registers important gains.
- Government bond yields rise in line with improving market sentiment.
- Oil and metals are holding on to recent gains.
Equity markets are rising on Friday but unable to erase weekly losses. Wall Street futures are firm, rising around 1.20%.
For now, just a bounce
In Europe the main squares are in green. The FTSE 100 climbs 1.95%, the DAX rises 1.96% and the FTSE MIB 1.85%. In advance of the formal open on Wall Street, the S&P 500, which closed Thursday down 0.58%, is up 1.15%. Dow Jones futures climb 0.90%. Bond yields on both sides rise moderately.
China cut a benchmark interest rate for long-term loans more than expected to support the country’s real estate market, which helped equity markets.
The rise in share prices is seen as a rebound from recent declines and is only enough to trim weekly losses. Stocks are on track for their seventh straight weekly decline, the worst streak since 2001. The backdrop has not changed much, as fears persist about the global growth outlook, coupled with monetary tightening and inflation, in addition to the continuing war in Ukraine.
The volatility It remains high and this week’s closing has an extra risk, since according to Goldman Sachs estimates, 450,000 million dollars in equity derivatives and 855,000 million in contracts related to the S&P expire.
The dollar continues to fall, albeit at a more moderate rate. The start of the dollar correction somewhat anticipated the rebound in equity markets. The DXY is snapping a six-week winning streak. The better mood contributed to the weakness of the dollar.
The Petroleum rises modestly but confirms a big rebound. The barrel of WTI bounced almost $8 on Thursday. Metals also rose significantly and retain gains. The Prayed trades at $1845, $25 above Thursday’s low; while the silver it does so in the $22.00 zone. The rebound also includes the cryptocurrencieswith BTC/USD trading above $30,000.
There will be no US economic data on Friday, nor is a presentation by Federal Reserve officials scheduled. With regard to corporate results, it is the turn of FootLockerDeere and Co and Regency. Ross Stores (discount clothing store) falls more than 20% in the premarket after yesterday’s results, adding to the concern generated by the Walmart Y target. On the opposite side, Palo Alto Networks rises more than 10% after better figures than expected.
|Today last price||3940.23|
|Today Daily Change||41.55|
|Today Daily Change %||1.07|
|Today daily open||3898.68|
|Previous Daily High||3944.87|
|Previous Daily Low||3857.98|
|Previous Weekly High||4095.91|
|Previous Weekly Low||3858.25|
|Previous Monthly High||4592.12|
|Previous Monthly Low||4122.09|
|Daily Fibonacci 38.2%||3891.17|
|Daily Fibonacci 61.8%||3911.68|
|Daily Pivot Point S1||3856.15|
|Daily Pivot Point S2||3813.62|
|Daily Pivot Point S3||3769.26|
|Daily Pivot Point R1||3943.04|
|Daily Pivot Point R2||3987.4|
|Daily Pivot Point R3||4029.93|
Source: Fx Street