- Financial markets calm and sideways ahead of ECB and US inflation.
- The euro soars and the yen collapses.
- Calm metals, oil consolidates at recent highs.
Wall Street futures are trading between gains and losses, while European markets are mostly losing. The calm and rallies in the recent ranges reflect some calm on Wednesday, before the meeting of the European Central Bank and from the data inflation from USA
in the family range
After rising 0.95% on Tuesday, S&P 500 futures on Wednesday are down 0.15%. In Europe, the main stock markets fell 0.42% on average. The indices are moving within recent ranges, in a context of low volatility.
More and more companies are warning about the results for the coming quarters. Morgan Stanley anticipated that these warnings will increase, reaching more and more companies.
in the premarket, WesternDigital rises more than 4% and smart sheet down 5.7% after reporting higher-than-expected losses. Among the companies that will present results on Wednesday are Greif, Yext, Five Below, Lovesac and Campbell Soup.
Among the headlines on Wednesday is the report with the new projections of the Organization for Economic Cooperation and Development (OECD), which are added to those of the World Bank, in the expectation of lower growth figures for 2022 and 2023 In the Eurozone, growth figures were released for the first quarter that were better than expected.
The economic calendar for the rest of Wednesday looks light. The report to consider will be the US wholesale inventories and the placement of 10-year debt. Treasury Secretary Janet Yellen will speak again in Congress. The May inflation figures will be out on Friday and next week will be the FOMC meeting.
climb it on the inflation throughout the world continues to lead central banks to apply monetary tightening. On Wednesday it was the turn of the Reserve Bank of India which raised the benchmark interest rate by 50 basis points to 4.9%.
Among the coins, the and in continues to slump and is trading at its lowest since 2002 against the dollar. The rise in government bond yields remains a negative factor. The USD/JPY does not stop advancing and since the beginning of June it is already up more than 550 pips.
Before Thursday’s meeting European Central Bank (ECB) the euro looks firmer and advances on almost all fronts. The market is discounting an early rise in interest rates by the ECB, possibly starting in July. Germany’s 10-year bond yields nearly 1.35%, the highest in years.
Gold trades flat around $1,850. Oil is at its highest since March with a barrel of WTI above $120.00. Cryptocurrencies show a certain calm. Bitcoin has moved away from the recent peak but is above $30,000.
Technical levels
Source: Fx Street
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