- Stocks maintain Tuesday’s strong gains for now.
- The big Wall Street banks present results.
- Expectation for announcements in the United Kingdom.
- The yen continues to slide, while the dollar recovers from Thursday’s plunge.
- After higher-than-expected inflation data on Thursday from the US, retail sales and consumer confidence are coming.
Wall Street futures are up modestly, with major European stocks gaining more than 1%, though pulling back from highs. Volatility remains firm after Thursday’s US inflation data. The dollar regains strength, while the yen continues to decline.
moved hours
The US inflation data yesterday triggered big moves in the market. The figures were slightly above expectations, with a lower-than-expected decline in the annual rate. Core inflation does not give up and rose to 6.6% (annual), the highest level since 1982. This paved the way for a rise of 75 basis points for the next meeting of the Federal Reserveand generated some bets for a 100-point raise.
After an initial sharp decline, Wall Street dramatically reversed direction and closed up around 2.50%. Futures point to a continuation of the gains, with the S&P 500 up 0.45% in the preview and the Dow Jones up 0.65%.
Regarding data on Friday it will be the turn of the US retail sales figures for September and consumer confidence for October. Hours ago, a slightly lower than expected rise in inflation was known in China (annual rate went from 2.5% to 2.8%) and an increase in the Wholesale Price Index in Germany in September of 1.6%, taking the annual rate to 19.9%, above the 19% market consensus.
The dollar initially spiked with inflation figures on Thursday but then fell sharply, making a big reversal which if confirmed could point to some weakness ahead to continue the rally. Doubts in the dollar do not stop the advance of the USD/JPY which rose above 147.70, to levels not seen since 1990. The weakness of the yen is persistent and could continue like this, according to analysts, as long as the great divergence continues between the ultra-accommodative Bank of Japan and the rest of the central banks that are adjusting monetary policy.
The pound is losing ground on Friday ahead of announcements from Prime Minister Liz Truss’s government, which would include a change in its fiscal plans and the removal of Finance Minister Kwasi Kwarteng.
The metals They continue to move with high volatility and without defining a clear direction, but maintaining the underlying downward trend. Gold, after bouncing to $1670, is back at $1650, while silver went from $19.00 to below $19.50. Oil prices accelerated the fall in the last hour erasing the rise of Friday. The barrel of WTI falls 1.80% and operates at $87.50.
The cryptocurrencies They were greatly favored by the fall of the dollar and the rise in the stock markets on Thursday and maintain the positive tone. Bitcoin rises more than 1.50% and trades at $19,700. In a few hours it went from being at a minimum in a month to a maximum in a week. Ethereum gains almost 3% and trades at $1,330.
Netflix it rises 0.85% in the previous one, after presenting on Thursday details of its new subscription that includes advertising. The big banks will present results on Friday, including JPMorgan Chase, Morgan Stanley, Wells Fargo Y Citi Group.
Technical levels
Source: Fx Street
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