- Equity markets continue to advance on Tuesday.
- The dollar corrects downwards and bonds rise.
- The presentation of corporate results continues.
Futures for the main Wall Street indices point to a continuation of Tuesday’s rally. The S&P 500 rises 0.42% and the Nasdaq 0.41%. The focus continues on the presentation of results for the first quarter and the impact of the war in Ukraine and the adjustment of the central banks.
On Tuesday, the shares of airline and hotel companies had significant increases after a federal judge removed the obligation to use masks in mass transportation.
Follow the presentation of corporate results. Netflix it made headlines again, this time due to a drop in the number of subscribers that led to a 25% drop in the share price in the pre-market. Today they will publish results, among others, Tesla, Abbott, United and Proctor & Gamble.
The treasury bond yields they are correcting lower on Wednesday. The 10-year rate fell to 2.86%, the minimum in two days and the 30-year rate fell to 2.92%. The 10-year inflation-adjusted bond rate turned positive for the first time in more than two years. The market will pay attention to the placement of 20-year debt.
The dollar is falling after several sessions with gains against the G10 currencies. The DXY has the worst day in weeks. Although the underlying trend is still in favor of the dollar, the beginning of the correction could be a sign of a pause in the rally.
The Petroleum and the metals They operate without significant changes, after the sharp drop they had on Tuesday. The decline in commodity prices put pressure on emerging market currencies.
more inflation
Several Fed officials will speak on Wednesday, including Mary Daly of the San Francisco Fed, Charles Evans of Chicago and Raphael Bostic of Atlanta. In the American afternoon, the Fed will publish the Beige Book on the state of the economy. The assembly of the World Bank and the International Monetary Fund continues in Washington.
The inflation keeps going up in the world. On Wednesday, the data for Canada for March was known, where the Consumer Price Index rose 1.4% (the highest monthly advance in decades) taking the annual rate to 6.7%, the maximum since 1991. In Germany, the wholesale rate of inflation rose 4.9% in March, and 30.9% compared to a year ago.
Supply problems, plus the rise in energy prices and the continuation of the war in Ukrainecontinue to generate a complicated outlook for inflation, forcing central banks to tighten monetary policy.
Technical levels
Source: Fx Street
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