Forex Analysis & Reviews: 07.04.2022 - American Premarket for April...

07.04.2022 02:14 PM

American Premarket for April 7: Russia points to Ukraine's rejection of the preliminary agreement reached in Istanbul

Futures on US stock indices rose slightly on Thursday, but this is more likely due to a slight pullback of the market after a series of unprofitable sessions in a row. After reviewing the plans of the Federal Reserve System to tighten monetary policy, which were disclosed in detail in yesterday's minutes of the March meeting, optimism has diminished. Dow Jones Industrial Average futures rose 30 points or 0.1%. S&P 500 futures rose 0.2% and Nasdaq 100 futures rose 0.4%.

Yesterday, the Fed published the minutes of its March meeting, which, although it did not turn out to be something unexpected, however, opened its eyes to how officials are going to deal with the bloated balance sheet. As it became known, the Federal Reserve System is likely to start reducing its balance sheet by $ 95 billion every month. This will further tighten monetary policy, as the central bank plans to further raise interest rates to counter the highest inflation in four decades. The March protocol states that many officials were already in favor of raising rates by half a percent, but still voted to change the rate by a quarter-point in light of Russia's military special operation on the territory of Ukraine. It is noteworthy that Fed policymakers considered several half-point increases at once, which may be appropriate in the future.

Immediately after the publication of the protocol, the Dow fell by more than 100 points, while the S&P 500 dropped by 1%, and the Nasdaq Composite technology completely lost another 2.2%.

Considering what uncertainty with interest rate increases awaits investors in the future, and everything depends on inflation data in the United States, I expect volatility to persist and further correction of the market to the area of more acceptable levels for purchase, which we will talk about below. Given that the geopolitical situation has deteriorated again, there is much less optimism in the market. Today, there was news that Ukraine has submitted a new draft agreement with Russia, and there is a departure from the proposals made in Istanbul. This was stated by Sergey Lavrov. The Russian Foreign Minister also said that the new version of the agreement does not state that Ukraine's security guarantees apply to Crimea and Sevastopol. The minister also called unacceptable the fact that Ukraine is putting forward all new preconditions.

Against this background, crude oil prices rose again after falling in the previous session. US crude added 0.7% to $ 96.94 per barrel, while international Brent crude rose 0.9% to $ 101.95. Weekly data on applications for unemployment benefits in the United States will be released today. An increase of 200,000 is expected. However, it is unlikely that this data will have a serious impact on the markets.

Premarket

HP Inc shares rose 15% in premarket trading after Warren Buffett's Berkshire Hathaway announced its stake in the technology equipment maker. Most likely, with the opening of the regular session, the demand for shares will remain.

Papers JD.com fell 1.1% in the premarket after the news that the company's founder Richard Liu left the post of chief executive officer, and President Xu Lei will become the new CEO. Liu will remain chairman.

As for the technical picture of the S&P 500

Yesterday, the bulls missed $ 4,488 and now we need to think about how to return to this level. There is a lot of pessimism, and most likely an unsuccessful attempt to consolidate above $ 4,488 at the beginning of trading will result in another sale. In this case, the bulls will have to defend the nearest support of $ 4,433. Having missed this range, you can say goodbye to growth and it is best in this case to postpone the purchase of a trading instrument to the lows: $ 4,383 and $ 4,319. It is possible to talk about the return of the market under the control of buyers only in case of consolidation above $4,488, which will allow the return potential to reach the nearest resistance of $ 4,539. Its breakdown will open the way to the highs: $ 4,589 and $ 4,637.

你今天已经点赞上这篇文章了

*这里的市场分析是为了增加您对市场的了解，而不是给出交易的指示。

If you have any content questions, please contact editorial-board@instaforex.com

Stock Markets

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025

该作者的更多文章

电子邮件订阅

EURUSD

Euro vs US Dollar

选择时间框架

分钟

小时

天

周

开始交易

通过InstaForex赚取加密货币汇率变动的收益。

下载MetaTrader 4并开启您的第一笔交易。

推荐文章

3月21日股票市場展望：S&P 500 和 NASDAQ 再次承壓

美國市場處於整合階段。川普尋求參議院支持對伊朗進行打擊

聯邦儲備局向股市拋出救生圈

美國市場上揚，因聯邦儲備委員會保持利率不變

3月20日美國股市：標準普爾500指數和納斯達克指數重獲穩定

2025年3月20日標普500指數預測

美國市場概覽：增長後的回調。焦點在於聯準會。預期不會有利率變動

3月18日股市概況：S&P 500和納斯達克指數連續第二天上漲

美國股市：支持位促成連續兩日上漲

3月17日股市分析：S&P 500和納斯達克持續承壓

Top analytics