The Euro fell back to 2016-lows of $1.05 in the second week of May, as the dollar holds strong and investors remain concerned over stagflation risk in Europe. Also, expectations that the ECB will raise interest rates much more slowly than the Federal Reserve make it difficult for the euro to attract investors. On a technical basis the first resistance on a rise is 1.0601 and first support is 1.0487 Level.
US stock futures slipped on Tuesday after Wall Street extended a sharp selloff that sent all three major averages to their lowest levels in over a year. Dow futures fell 0.4%, while S&P 500 and Nasdaq 100 futures were each down about 0.5%. In regular trading on Monday, the S&P 500 dropped 3.2% and the Dow declined 1.99% to their lowest since March 2021. The Nasdaq Composite also plunged 4.29%, accelerating a selloff in the tech-heavy index to its weakest since late 2020. Those moves came as inflation fears and growth concerns continued to grip markets. Rising interest rates also continued to pressure technology names with sharp losses from Tesla (-9.1%), Apple (-3.3%), Amazon (-5.2%), AMD (-9.4%) and Nvidia (-9.2%). In extended trading, AMC jumped 2.6% on a strong quarterly performance as consumers returned to movie theaters, while Novavax tumbled 22% on an earnings miss.
European stocks are seen rising when markets open on Tuesday, attempting to rebound from a big slump the day before, although volatility is set to continue as stagflation risks mount, the war in Ukraine is far from over and worries over a slowdown in China and a faster Fed tightening persist. Meanwhile, traders will continue to follow the earnings season, with earnings from Bayer beating forecasts, mainly boosted by its farming business. Pirelli and Salvatore Ferragamo are also due to report.