Tuesday, July 5

Caution on Wall Street, waiting for tomorrow’s CPI data

Wall Street futures come with soft falls, anticipating a contained correction after the rises harvested yesterday on the other side of the Atlantic, when the US indices closed positive for the third consecutive day: the Dow Jones rose 0.10% to 35,754, 75 points, the S&P 500 added 0.31% at 4,701.21 and the Nasdaq 100 ended the day with a 0.42% gain at 16,394.34 units.

Meanwhile, this Thursday lAmerican futures trade with slight falls of 0.38% for the DOW JONES at 35,611.70, 0.42% for theS&P 500 that moves at 4,681.4 and 0.53% for NASDAQ to touch 16,307.2. And is that, while waiting for the inflation data in the United States, which will be known tomorrow, investors seem to opt for caution in equities.

On this matter, economists expect annual headline inflation in the United States to have hit 6.8% last month, although previous readings have surprised to the upside. “An acceleration in the rate of reduction of inflation by the Federal Reserve is considered almost a foregone conclusion,” say analysts at ANZ Bank, and beyond that there is an expectation of rising interest rates in the United States in 2022. “But a strong figure could raise expectations for a hike in the second quarter of next year.”

Politics and macro

Ukraine’s Foreign Minister Dmytro Kuleba announced yesterday to Reuters that the talks between US President Joe Biden and Russian President Vladimir PutinThey had allowed “deterrence and de-escalation.” In the first reaction from a Ukrainian authority on Tuesday’s video call between Biden and Putin, Kuleba welcomed US efforts to bring Russia to the negotiating table. After the telematic meeting, Putin commented: “My conversation with Biden has been open and constructive. We have agreed to keep the door open to continue talking. We can send security proposals to the US in just one week.” The new German Chancellor, Olaf Scholz warned: “There will be consequences if Ukraine’s borders are violated, but we are doing everything possible to prevent this from happening.”

United Kingdom threatens to impose Tariffs on more US products over the steel dispute. Britain’s Trade Minister is warning the Biden Administration of retaliation if it refuses to lift Trump-era sanctions.

The China’s Commerce Ministry asks the United States to stop its irregularities in Xinjiang. China is firmly against the US bill banning Xinjiang products

Yesterday he Bank of Canada kept interest rates at 0.25%, as expected by the market consensus.

Other markets

For its part, Europe started the day green, but some indices have already turned around: the DAX cuts a 0.20% in the 15,653 points, the FTSE 100 falls by 0.06% at 7,333 points, the IBEX 35 falls by 0.39% at 8,445 points and the Euro Stoxx 50 it yields 0.25% in the 4,222 points. The CAC 40, which rises 0.04% and the FTSE MIB, with advances of 0.24%.

On Asia, widespread rises today except for Japan’s Nikkei index. The Tokyo index It cut 0.47% to 28,725 points, after the publication of the M2 money supply data in Japan, which has remained at 4%, from the previous 4.2% and below the 4.1% expected. In the rest of the indices generalized increases: 0.98% in the 3,673 points for the Shanghai Composite, the SZSE Component amounted to 1.15% to 15,137 units, the Hang Seng de Hong Kong rose 1.06% in the 24,250 integers and the Kospi from Seoul it added 0.93% to 3,029 points.

The bondholders of the Chinese real estate Evergrande They did not receive their interest payment yesterday at the expiration of the 30-day grace period, according to several agencies, which leaves the company in a defaulted situation (non-payment) and increases speculation of a possible state intervention. Kaisa neither has it paid its bondholders. Kaisa shares are suspended from trading. Fitch downgrades Kaisa to “restricted default” due to non-repayment. AOYUAN joins the list of promoters in trouble.

The oil prices they rose again overnight, albeit at a much more modest pace, in line with price developments in equity markets. At this time, they are also stained red: Brent futures fell 0.47% at $ 75.46, while West Texas lost 0.25% at $ 72.17.

The OPEC + it raised its production by 500,000 b / d in November despite the strong uncertainty generated by Ómicron, according to an S&P report. On the other hand, Mohamed Barkindo, Secretary General of OPEC, said: “High prices, imbalances and lack of supplies are affecting energy markets.” In another news order, IEA inventories fall less than the market consensus expected. IEA crude oil inventories: -0.240M vs -1.705M expected (-0.910M prior). SPR (Strategic Petroleum Reserves) reserves fall to their lowest level since May 2003.

The EUR/USD it falls back in its relation to the dollar, 0.21%, at 1.1319 greenbacks today.

In the cryptocurrency market, Bitcoin falls more than 2% at $ 49,426.10.

Agenda of the day

On USA the focus of attention will be on the new requests for unemployment benefits.


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