- After sharp decline on Monday, equity markets recover on Tuesday.
- The dollar with mixed results, is not favored by rising yields.
- Situation in Ukraine remains the main factor for the markets.
The futures of the main indices of wall street they are in green after the sharp drop on Monday. The S&P 500 closed with a fall of 2.95% and in the previous one it rose 0.75%. Markets in Europe are mostly trading in positive territory. The recovery takes place in an environment where caution and uncertainty continue to prevail.
The oil market looks more stable, but maintains the upward trend. The barrel of WTI It trades in the $120.00 a barrel zone, up nearly 3%, though still far from Monday’s peak. The spike in energy prices continues to be key for the markets and the impacts are only just beginning to be felt.
The focus remains on the situation in Ukraine and the Russian invasion. Talks continue to try to establish a humanitarian corridor for civilians fleeing the country. Ukrainian President Volodymyr Zelensky has indicated that he is willing to discuss the future of the separatist regions but that he is not there to receive ultimatums.
On USA Lawmakers are advancing on bills to ban imports of Russian oil. Russian Deputy Prime Minister Alexander Novak warned that they could cut off gas supplies to Europe.
The yields of Treasury bond they rise on Tuesday due to the better mood in the markets and with operators once again discounting more adjustment by the Federal Reserve. The 10-year rate yields 1.85%, the highest since March 3. This is negative for the yen, which is one of the worst performing currencies, but at the same time it does not significantly boost the dollar, which is weakened by the recovery in stock markets. The volatility continues to mark the operation with the Russian ruble. USD/RUB reached above 160.00 on Monday, before falling to 115.00; and at the time of writing, it trades at 133.50.
The metals They are going up on Tuesday. Gold begins to assert itself above $2,000 an ounce, ratifying a certain strength as it is not affected by the rise in stock markets or yields. Silver rises and is above $26.00.
The economic calendar shows US foreign trade and January wholesale inventory data ahead of Tuesday. These are not expected to have an impact on the market. Thursday will be the turn of retail inflation for February and next week, the Federal Reserve meeting. On Wednesday, in the Asian session, the market will be attentive to the inflation numbers from China.
Another noteworthy piece of information for Tuesday is that the US Energy Information Agency will release the short-term outlook report and that Manzana A new product presentation event is planned, which would be a third generation of iPhone SE, which would include 5G.
Technical levels
Source: Fx Street
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