S&P 500: The falls do not stop, the dollar and the yen soar

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  • After the strong falls on Wednesday, Wall Street points to new lows.
  • The dollar and the yen rise due to greater demand for safe-haven assets.
  • Metals, cryptos and oil down.

Wall Street indices are set to start Thursday at new lows in more than a year as negative weather continues on fears of a global slowdown with high inflation. Tensions are on the rise, driving demand for safe-haven assets.

The breath did not last

After a recovery after the US inflation data, Stocks resumed their lows on Wall Street and around the world. The S&P 500 fell 1.65% on Wednesday and futures fell 0.88%, while those on the Nasdaq fell 1.50%. In Europe, casualties in the main markets average 2%.

The war in Ukraine, the restrictions in China, high inflation and the expectation of a strong global monetary adjustment worsened the global economic outlook, favoring declines in the markets. The same declines in the stock markets contribute to increasing fears, fueling a pessimistic cycle, which is driving the demand for public securities at this time.

The treasury yields but also German bonds are falling, even despite the expectation of interest rate hikes, reflecting that fears dominate the scene. The US 10-year tranche yields 2.83%, far from the 3.07% reached on Wednesday after the US inflation data.

among the coins, the yen has become the strongest. The dollar is next with the DXY at new highs in two decades above 104.50. EUR/USD is still in free fall and after losing 1.0480, it has now dropped below 1.0400.

The drop in yields is limiting the fall in gold, which is down just $10 for now and is trading at $1,842, while silver is down more than 3% and is trading at its lowest since July 2020. Copper is down 4% . Oil is holding up relatively well in this context, shedding just over 1% on Thursday, far from yesterday’s lows.

Tensions continue to impact the market for cryptocurrencies, where there is also a cycle that feeds back negatively. Bitcoin price lost more than 10% hours ago, hitting $25,400, the lowest since December 2020. Even stablecoins, which offer dollar backing, are under pressure. Trading platforms are also affected. coinbase, which in the fourth quarter of 2021 was operating around $300, is about to reach $50. On Wednesday it lost 26% and in the premarket it lost 6.50%.

The economic calendar shows ahead for Thursday in the US the wholesale inflation report and the weekly jobless claims. Although the focus is expected to continue on the sharp falls that are taking place in the equity markets.

Technical levels

SP500

Overview
Today last price 3908.62
Today Daily Change -26.39
Today Daily Change % -0.67
Today daily open 3935.01
trends
Daily SMA20 4230.99
Daily SMA50 4345.73
Daily SMA100 4439.7
Daily SMA200 4486.11
levels
Previous Daily High 4052.95
Previous Daily Low 3927.46
Previous Weekly High 4305.91
Previous Weekly Low 4059.63
Previous Monthly High 4592.12
Previous Monthly Low 4122.09
Daily Fibonacci 38.2% 3975.4
Daily Fibonacci 61.8% 4005.01
Daily Pivot Point S1 3890.66
Daily Pivot Point S2 3846.32
Daily Pivot Point S3 3765.17
Daily Pivot Point R1 4016.15
Daily Pivot Point R2 4097.3
Daily Pivot Point R3 4141.64

Source: Fx Street

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