- Wall Street futures fall and cut bullish streak.
- Oil soars after European embargo on Russian crude.
- Metals fail to settle.
In the previous one, the futures of the main Wall Street indexes are falling, after the holiday on Monday and the strong rises of last week. European markets operate with a majority of losses, due to rising oil prices and fears of inflation.
The week starts again
The S&P 500 futures fell 0.52%, Nasdaq futures lost 0.11% and Dow Jones futures fell 0.63%. Meanwhile, in London the FTSE 100 rises 0.37%, in Frankfurt the DAX falls 0.77% and in Paris the CAC 40 yields 0.95%.
Among the actions with the most movement in the previous one is Unilever, up 6.50%, following the announcement that Nelson Peltz, a billionaire investor, will join the board of directors. Oil companies have an outstanding performance on Tuesday. Today Salesforce, HP and Victoria’s Secret, among other companies, will present results.
The reopening of the US markets occurs in a context of a strong rise in the oil price. On Tuesday the WTI climbs 3.20%, accumulating an advance greater than 7% since Thursday. The key was the European Union’s draft partial embargo on Russian oil, effective within six months. The one that arrives by pipeline was excluded, which is estimated to be one third of the total. The final agreement could come on Wednesday with the meeting of leaders of the 27 nations. Prior to the announcement, oil had been advancing on expectations of fewer restrictions in China due to COVID.
The data from the Eurozone showed that inflation continues to rise at an even higher rate than expected. The harmonized consumer price index reached 8.1% (annual), a new record. This adds pressure for increases in interest rates from the European Central Bank. Despite the figures, the euro was not favored.
The economic data calendar ahead for Tuesday in the US includes the S&P CoreLogic Case-Shiller Home Price Index for March, the Chicago PMI, the Conference Board Consumer Confidence Index for May and the Dallas Fed manufacturer. In addition, President Joe Biden will meet with the president of the Federal Reserve, Jerome Powell. Canada will release GDP growth data.
The dollar is recovering ground on Tuesday, at a moderate pace, supported by some weakness in the markets and a rise in Treasury bond yields. The 10-year rate stands at 2.82%, the highest in almost a week.
The cryptocurrencies They are still recovering, at a moderate pace. Bitcoin climbs slightly, holding on to previous gains, and stands above $31,000. Metals operate with a negative trend, especially silver, which loses 1.60% and operates at $21.60 (low in one week); gold is down 0.20% and hovers around $1,850.
Technical levels
Source: Fx Street
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