You are here: Home > articles > Commodities > Forex > US premarket on July 10, 2023: pressure on stock market increases
US premarket on July 10, 2023: pressure on stock market increases
July 10, 2023 1:23 pmVideo
Latest News
- Analysis of EUR/USD pair on May 9th. Euro woke up after the Bank of England meeting May 9, 2024
- Analysis of GBP/USD pair on May 9th. Andrew Bailey did all he could May 9, 2024
- USD/JPY: Simple trading tips for novice traders for May 9th (US session) May 9, 2024
- GBP/USD: Simple trading tips for novice traders for May 9th (US session) May 9, 2024
- EUR/USD: Simple trading tips for novice traders for May 9th (US session) May 9, 2024
- Technical Analysis – GBPUSD retreats further after BoE’s decision May 9, 2024
- Technical Analysis – UK 100 index swings to all-time high May 9, 2024
- GBP/USD: trading plan for the US session on May 9th (analysis of morning deals). The pound continues to be held within the May 9, 2024
- EUR/USD: trading plan for the US session on May 9th (analysis of morning deals). The euro rebounded from 1.0726 May 9, 2024
- EUR/USD. May 9th. Bulls have exhausted their strength May 9, 2024
- GBP/USD. May 9th. Bulls fear Bailey’s “soft” rhetoric May 9, 2024
- Midweek Technical Look – EURUSD, Gold, US 500 May 9, 2024
- Technical Analysis – EURCHF flirts with uptrend line May 9, 2024
- Technical Analysis – EURGBP runs out of steam near 0.8600 May 9, 2024
- Forex forecast 05/09/2024: EUR/USD, GBP/USD, Oil and Bitcoin from Sebastian Seliga May 9, 2024
- USD/JPY: trading tips for beginners for European session on May 9 May 9, 2024
- Technical Analysis – USDJPY advances after bouncing off 50-day SMA May 9, 2024
- Market Comment – Pound slides ahead of Bank of England decision May 9, 2024
- Technical Analysis – NZDUSD bulls face strong resistance May 9, 2024
- GBP/USD: trading tips for beginners for European session on May 9 May 9, 2024
US stock index futures opened with a sharp downward gap on Monday, but later managed to recover as traders fought to keep the market within the trading channel.
Weak CPI data from China heightened concerns about the global economic outlook ahead of key US inflation reports, due later this week. S&P 500 futures are currently trading nearly unchanged from Friday’s closing level, while Nasdaq 100 futures slipped by 0.2% following a sell-off triggered by US wage data, highlighting that inflation remains a top economic concern. Treasury yields declined, while the dollar index strengthened.
The stock market has not had a great start of the second half of 2023. It’s evident that the economy will continue to face significant pressure from Fed policy and high interest rates, as the battle against inflation is far from over. US Treasury Secretary Janet Yellen recently expressed her concerns about high base prices and did not rule out the possibility of a recession in the US next year.
Given that the focus is currently on inflation over an extended period, this week’s data could prove decisive for the FOMC, with its monetary policy meeting slated for the end of the month. Traders will closely evaluate the US CPI data on Wednesday, followed by the PPI data the next day. If inflation rises, the risks of a looming recession will also escalate.
Another important factor is the earnings season for the second quarter, which is on the horizon. Investors are bracing themselves for increased volatility in the coming weeks. Markets anticipate what could be the worst earnings season since the end of the COVID-19 pandemic, when support and stimulus programs were at their peak and money flowed at historically low interest rates. Quarterly results will likely contain many negative outlooks, and a more substantial correction is likely, especially within the technology sector.
In the EU, the STOXX Europe 600 index fluctuated after experiencing its largest weekly decline since mid-March. Mining companies led the downward trend due to declining iron ore and copper prices. Shares of Rio Tinto Group fell more than 2% after its chairman warned of headwinds from China regarding raw materials. Bayer AG rose by 3.2% following the announcement that the company was planning to spin off its agricultural chemicals business.
Asian stock market indexes also declined for the fourth consecutive day, approaching the lowest closing level in over a month. The offshore yuan fell after the publication of statistic data, while oil prices retreated on Monday after last week’s gains. Gold also went down.
As for the technical picture of the S&P 500, demand for the index has slightly diminished. While the bulls still have a chance to sustain the upward momentum, they must regain $4,405. A breakout above this level would likely propel the index towards $4,427 and $4,447. An equally important task for bullish traders will be maintaining control over $4,469 and $4,488, which will strengthen the bullish sentiment in the market. However, if risk appetite continues to wane, bulls must firmly establish themselves around the $4,382. A breakout below this level would push the instrument towards $4,357 and pave the way for further decline towards $4,332.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: