(CercleFinance.com) – US equity markets should open higher on Friday morning, pending the publication of new statistics and on a background of dissipation of fears regarding the pace of monetary tightening by the Fed.
Half an hour before the opening, futures on the main New York indices rose 0.6% to 0.7%, signaling the start of the session in positive territory.
Wall Street should thus confirm its recovery that began at the start of the week, with investors seeming ready to return to riskier assets despite persistent fears surrounding the economy.
Since Fed Chairman Jerome Powell spoke to Congress on Wednesday, market players seem less worried about the future direction of monetary policy.
‘Many players are positioning themselves for a recession, while recognizing that there is a high degree of uncertainty about the evolution of inflation and interest rates’, underlines one at UBS.
“Some of the Fed rate hikes that currently seem priced in by the market may not materialize if growth deteriorates further,” the Swiss bank said.
On the bond market, the yield of 10-year Treasuries reflects this easing movement by returning to the 3.1% zone, while it was still flirting with the 3.5% mark last week.
But investors are nonetheless worried about the health of the US economy.
In this sense, operators will follow with interest, during the morning, the final index of consumer confidence in Michigan, as well as sales of new homes.
This last statistic will be closely watched in order to gauge the strength of the US real estate market, which appears to be increasingly under pressure due to the rise in borrowing costs against a backdrop of monetary tightening.
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