- US stocks trim Wednesday’s advance.
- The dollar resurfaces and erases much of the losses.
- Metals continue to advance, as does oil.
Stock futures on Wall Street are falling Thursday, giving up some of Wednesday’s strong rally. The dollar regained strength, while the pound plummeted. Oil rises again and metals continue to rally.
lower the foam
Markets in Europe are rising on Thursday, dovetailing with what was the strong advance in the US (best day for stocks since 2020) following the Federal Reserve decision, but Wall Street futures for now , anticipate a correction. The FTSE 100 rises 1.55% and the CAC 40 advances 1.85%.
The S&P 500 closed with a gain of 2.99% on Wednesday, and in the previous one it is falling 0.59%, with post-Fed optimism beginning to wane. The US central bank raised the interest rate by 50 basis points and Powell ruled out a 75bp hike.
As far as data is concerned, on Thursday a rise in initial claims for unemployment benefits in the US to 200,000, the maximum in eleven weeks, was known, above expectations. On Friday the employment report will be published with the non-farm payrolls and the unemployment rate. Also on the last day of the week, several members of the FOMC (Williams, Kashkari, Bostic, Bullard, Waller and Daly) will speak in public.
Treasury yields remain in the recent range, while at the same time European bond yields retreat, accelerating the decline after the Bank of England meeting, which boosts the dollar. The 10-year Treasury bond rate is at 2.95% and the 30-year one at 3.03%.
The dollar gained pace in the last hours and erased much of the losses that followed the Federal Reserve meeting against the G10 currencies, although not against the emerging ones. The pound fell the most in the world on Thursday weakened after the BoE decision and minutes. The rise in the interest rate was overshadowed by the warning of risks of a recession and the divisions among the members of the Monetary Policy Committee on the future trajectory of interest rates.
The Dollar Index (DXY) is up 0.82%, and that one above 103.35, a far cry from the 102.35 low of hours ago. GBP/USD falls almost 2% and is below 1.2400 at 2020 lows, EUR/USD back at 1.0550 and USD/JPY targeting 130.00.
The prices of Petroleum They rise more than 1% and are at a maximum in two weeks, with the focus on the virtual meeting of the Organization of Petroleum Exporting Countries and its allies, to discuss the production strategy. The European Union’s plan to ban the purchase of Russian oil remains a key factor for crude price rises.
The metals they are also advancing on Thursday, extending Wednesday’s gains. Gold (XAU/USD) is trading at $1906, the highest in days, and almost $50 above the level of 24 hours ago. Silver (XAG/USD) is at $23.15, rising for the second day in a row and leaving behind the losing streak of eleven days with losses.
Follow the presentation of corporate results for the first quarter. Today it is the turn of ConocoPhillips, News Corp. and Kellogg, among others.
Technical levels
Source: Fx Street
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