- Futures fail to stay in positive territory.
- Treasury bond yields hit new highs in years.
- The dollar gains momentum and rises in the market.
- Stable oil, metals fall.
Wall Street futures turned negative in the last hour as Treasury yields hit multi-year highs. The dollar gained momentum in this context and metals accelerated their decline.
Not so optimistic anymore
In Europe, the main squares show mixed results. The FTSE 100 falls 0.18% while the CAC 40 rises 0.10%. The S&P 500 closed 1.15% higher. on Tuesday while futures on Wednesday point to an opening with a fall of 0.27%. In this way, the strong rally is being cut, for now, with a modest drop.
Netflix presented results on Tuesday and reported an increase in users twice as high as expected. In the previous one, the shares rise more than 10%. United Airlines advances 4.80% in the premarket after earnings report. Tesla, IBM and Procter & Gamble present results today.
Key data on the economy of China, which were scheduled for Monday. In the US, the housing starts and building permits report will be published on Wednesday. Also speaking will be Federal Reserve officials James Bullard, Charles Evans and Neel Kashkari. In the American afternoon it will be the turn of the Fed’s Beige Book on the state of the economy. From Saturday no more central bank officials will be heard as the period of silence begins ahead of the next meeting.
In Canada Wednesday is September inflation figures to be reported and early Thursday employment data from Australia.
The dollar is rising across the market, buoyed in recent hours by rising Treasury yields and a pullback in equity markets. The US 10-year bond yields 4.09%, the highest since 2008while the 2% is testing 4.50%.
The pound looks more stable on Monday, although GBP/USD pulls back and trades at daily lows near 1.1200, but on dollar strength. In the United Kingdom The novelty on Wednesday was the inflation figure that rose again above 10% in September, after a monthly rise of 0.5% (higher than the 0.4% market consensus). Politics will have its chapter with the first “question Wednesday” session for Prime Minister Liz Truss, after the failed fiscal plan.
The prices of Petroleum trying to stabilize after Tuesday’s fall. The barrel of WTI trades with a modest rise of 0.80%, near $84.00. Today the US president will announce the release of 15 million barrels of strategic reserves.
Rising yields plus a strong dollar have weighed on metals. The Prayed is at a three-week low testing $1,630, while the silver below $18.50, after erasing the weekly advance.
The cryptocurrencies they are falling and continue to pull back from multi-day highs. Bitcoin is at $19,165 and Ethereum gives up more than 1% is below $1,300.
Technical levels
Source: Fx Street
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