- Optimism in the markets boosts stock markets and weakens the dollar.
- Wall Street index futures climb more than 1%.
- Metals, cryptocurrencies and oil advance.
Equity markets are rising strongly, on a better mood in the markets due to economic data from Europe, the expectation of an easing of restrictions in China and a general correction. The dollar has the worst day in weeks.
Markets bounce, the dollar corrects downwards
Wall Street futures point to a significant gains open. The S&P 500 rises 1.55% and the Nasdaq 1.90%. In Europe, the main squares rose by an average of 1% and in Asia there was a generalized green.
What started as a correction of the declines gained momentum on Tuesday. One factor was economic data from the Eurozone (growth of 0.3% in the first quarter) and the United Kingdom (unemployment at 3.7%, a 30-year low). On the other hand, the expectation is growing that the restrictions in China due to COVID will be eased. In the US, data on retail sales and industrial production will be published. The situation in Ukraine continues without showing progress towards a cessation of the war.
Technology shares rise in the previous on Wall Street, although not those of Twitter which continues with strong movements due to the doubts of Elon Musk due to the number of false accounts. The share price falls 2% in the previous one, and is already below what he had when he announced the purchase of a portion of the company. Corporate results will be presented on Tuesday Home DepotY Walmartamong other.
The context of greater appetite for risk is leading to dollar to a major downward correction. The DXY falls for the third day in a row and has the worst day in weeks. EUR/USD is at the 1.0550 zone and GBP/USD is targeting 1.2500. Emerging market currencies also advanced against the greenback. Treasury bond yields, for now, have not reacted to risk appetite and are falling slightly. The 10-year rate stands at 2.90% and the 30-year rate at 3.10%.
The good climate in the markets serves the cryptocurrencies that recover on Tuesday, moving away from the recent flats. BTC/USD rises 1.80% and trades above $30,000. The metals They climb for the second day in a row and are close to hitting one-week highs with gold above $1830 and silver at $21.70. The Petroleum It is also favored by a better outlook for demand and rises almost 2%.
Monetary policy expectations are confirmed in the market, so the comments of central bank officials seem to have less impact than days ago. Likewise, they are events to take into account. Comments were already heard on Tuesday from members of the Governing Council of the European Central Bank about rate hikes and Christine Lagarde will speak later. Among those of the fed speaking publicly on Tuesday are James Bullard, Patrick Harker, Loretta Mester, Charles Evens and even Jerome Powell, who will speak at a Wall Street Journal event on the economy.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
