- Futures rise and markets continue to rally.
- Metals continue to climb but trim gains.
- The dollar tries to recover but cannot.
The futures of the main Wall Street indices are rising 0.50% on average and the European stock markets register advances of more than 1%. Help optimism on Friday corporate results. In the US the debate began on whether it is in recession; more important economic data on Friday.
follow the rally
Since Wednesday’s decision by the Federal Reserve, the shares have not stopped rising, which helped extend monthly gains. The S&P 500 is on track to have its best month since 2020. Signs that the central bank could ease the pace of monetary tightening depending on the data was a hint that boosted investor sentiment.
S&P 500 futures are up 0.62% on Friday, after closing Thursday with a 1.21% gain.. In Europe, the FTSE 100 advances 0.24%, the DAX 1.15% and the FTSE MIB 2.05%. The latest corporate results helped equity markets in both Europe and the US.
amazon up 11% in the premarket, despite reporting a net loss for the second quarter in a row. Manzana climbs 2.65% after reporting a drop in earnings. Intel falls 11% after suffering an unexpected quarterly loss. roku falls more than 20% due to a drop in advertising spending and a pale forecast. Procter & Gamble falls 3.50% despite showing the highest gains in 16, but warned of a slowdown ahead.
The shares of the green energy jumped on Thursday after the political agreement in the US Congress for a package of 370,000 million dollars to combat climate change.
Regarding the next results of the second quarter, on Friday it will be the turn of energy and consumer products companies; including Colgate, Exxon Mobil, Chevron, Newll Brands and AstraZeneca.
On Thursday it became known that the US economy contracted in the second quarter and has already accumulated two consecutive negative ones, which started a debate about whether it is in a recession. On Friday, US personal income and spending data will be released, which includes the all-important core price index for personal consumption spending (a measure of inflation closely watched by the Fed), the employment index, the PMI for Chicago and the University of Michigan Consumer Confidence Index.
In Europe Inflation and growth data for the second quarter were mixed, as both showed numbers above expectations. Growth in the region was 0.7%, higher than the 0.2% expected, although Germany stagnated. Inflation reached a new record in the region, rising to 8.9% (yearly) in July, beating expectations of 8.7%. The data put pressure on the European Central Bank to continue raising interest rates in the next meetings.
Among currencies, the dollar is consolidating recent losses, although on Friday it is showing signs of stabilization. The yen remains one of the best performers, despite the rally on Wall Street. The expectation of monetary policy from the Fed, with the possibility of less aggressive hikes and even lower rates in 2023, are weighing on yields.
The same reasons that keep USD/JPY in a strong correction (it trades at 133.30, after having reached 139.30 in the middle of the month), is the support for gold gains. XAUUSD hit three-week highs near $1,770. Silver also soared to trade above $20.00, recovering from two-year lows. XAGUSD jumped more than 10% from the low of the week.
The cryptocurrencies are also favored by the current context. The Bitcoin it went as high as $24,400, but then returned below $24,000.
The prices Oil prices continue to show great volatility, although they remain within a lateral range with an upward bias. Rise more than 2% on Friday, with WTI still below $100.
Technical levels
Source: Fx Street
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