- The stock is falling modestly on Wednesday after rising on Tuesday.
- The dollar tries to recover ground but cannot recover.
- Metals are trading steady, while cryptos continue to recover.
Stock prices in Europe and Wall Street futures are falling modestly and are holding on to recent gains, trading at their highest in weeks. The dollar rises, but does not recover the strength of days ago. The market awaiting the ECB and looking at the Fed.
unable to sustain profits
On Tuesday, supported by the first corporate results, together with the expectation of a rise of “only” 75 basis points from the Fed in July, the US stock market recorded significant gains with the S&P 500 rising 2.76%, in the previous Wednesday it fell 0.17%. In Europe, the main places fall 0.40% on average.
Among the companies that presented results is netflix, which rose 6% in the previous one, after reports of a lower-than-expected fall in subscribers in the second quarter. Among those reporting on Wednesday are Tesla, United Airlines, Abbott, Baker Hughes, Alcoa, Crown Castle Corp. Y CSX.
In Europe intense days continue and not only because of the heat. The fate of the Italian prime minister is defined mario draghi on Wednesday and Thursday, in addition to the decision of the European Central Bank it will be known how Russian gas flows to the rest of Europe through Nord Stream 1 resume. Italian bonds are rising on the possibility that Draghi remains in office.
The European Central Bank will announce the monetary policy decision on Thursday. A rise of 25 basis points is expected, a higher rise is not ruled out; The “anti-fragmentation” policy should also be announced, but reports indicate that it would not be ready yet. The euro in the previous one trades far from the minimum in years against the dollar, but still below parity against the Swiss franc.
The European Union asked countries to start rationing the use of natural gas, warning about the intentions of Russia and not to suffer a deterioration in growth. Vladimir Putin, Russia’s president, said the country will meet its gas commitments to Europe but warned that the flow could be reduced if sanctions make it difficult to maintain the components.
In the United Kingdom, the inflation data was known that showed a rise of 9.4%, compared to a year ago, the highest since 1982.
The Bank of Japan The two-day monetary policy meeting began. No changes are expected and therefore the policy of low rates and control of the yield curve will continue. Canadian inflation data will be released later on Wednesday, where the CPI is expected to rise to 8.4%. In the US, data on existing home sales will be published.
After several hours of trading in small ranges, the dollar gained momentum and set daily highs against the main European currencies. The rest of the crossings continue without registering significant variations, with the green ticket validating the recent falls. Among emerging currencies, the Indian rupee fell to record lows on Tuesday, although the USD/INR managed to close below 80.00.
Metals remain stable without moving away from recent lows, with gold holding above $1700. The cryptocurrencies are still in recovery. The Bitcoin It trades above $23,500, at its highest in over a month. The prices of Petroleum they retreat more than 1%, and fall after three days with rises.
Technical levels
Source: Fx Street
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