S&P 500: The rally continues, the pressure on the dollar and the rise in raw materials

• Stocks continue with the bullish momentum.
• Raw materials lose time but not before setting new highs.
• The dollar remains weak, with a bearish bias and the DXY close to the December floor.
• With no data for these hours, expectations are growing for US inflation data on Thursday.

After Friday’s jump in shares on Wall Street, the markets are still in a good mood. Commodities retain gains, oil accelerates higher, and the dollar remains weak, although the yen is the worst on Monday.

Everything up, except the dollar

In Asia, markets closed in the green joining Friday’s rally on Wall Street. The Hang Seng climbed 1.89% and the Shanghai and Tokyo stock markets climbed 0.58%. In Europe, the FTSE 100 falls 0.07%, the DAX rises 046% and the CAC 40 gains 0.29%. The S&P 500 rose 2.28% on Friday and futures point to an extension of the gains and advance 0.31%. In the previous the Dow Jones climbs 0.25% and the Nasdaq 0.32%.

The expectation that the rate hike cycle by the Federal Reserve will soon end after last week’s data, together with the reopening of the borders in China are helping the best in the markets.

Bad Bath & Beyond volatility continues to the extreme, and after losing 22% on Friday, in the previous one it rises 20%. Goldman Sachs He affirmed that he will eliminate 3,200 jobs; rises 0.12% in the premarket. Nike falls more than 2% in the preview while Tesla rises 3.40%. This week the presentation of the results of the large companies for the fourth quarter will begin.

The dollar remains weak with the DXY trading just above seven-month lows. The worst performer is the Japanese yen, given the rise in stocks and stability in the bond market on Monday. USD/JPY bounces after the crash and recovers 132.00. EUR/USD reached 1.0700 before pulling back modestly. GBP/USD broke above 1.2150.

With regard to economic data, there was a lower-than-expected improvement in the Sentix Investor Confidence index in the Eurozone and that the unemployment rate remained at 6.5%. In the US, consumer credit data will be released and the Treasury will issue 3 and 6 month debt, in addition to public presentations by Mary Daly, from the San Francisco Fed and Raphael Bostic from the Atlanta Fed. It will be a quiet week in terms of the number of reports with a focus on the US December Consumer Price Index which is released on Thursday.

US President Joe Biden will meet in Mexico with his counterpart, Andrés Manuel López Obrador. In Mexico The inflation data for December was released, which showed a rise of 0.38%, and the annual rate going from 7.80% to 7.82%. The underlying rate fell from 8.51% to 8.35%. USD/MXN remains near recent lows, watching closely at 19.00.

The raw Materials They are rising, highlighting the advance in oil prices with increases of more than 3%. The WTI barrel it is about $76.20. Gold hit a months high of $1,880 before easing slightly and silver is struggling to return above $24.00. Cryptocurrencies have another positive day, with Bitcoin rising to highs since December 16 at $17,250. ethereum came back over $1,300.

technical levels