- European finished today's session lower, with DAX losing over 1.0%, mostly dragged down by oil, mining and industrial goods and services companies as protests against covid restrictions sparked in major Chinese cities over the weekend .
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Goldman Sachs point out that Beijing may ease its zero-Covid policy earlier than anticipated due to growing anger against strict Covid measures, though fears of a government crackdown continued to weigh on market sentiment
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Fresh comments from ECB President Christine Lagarde and Dutch central bank chief Klaas Knot pointed to more rate hikes in the future, which also halted market bulls.
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Major Wall Street indexes are trading 1.0% lower, dragged by not only by concerns over second biggest economy by also hawkish comments from several FED members.
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Stocks of companies which have major production facilities in China, like Apple, were under pressure. US-listed Chinese companies, such as e-commerce giants Alibaba Group and JD.com, also took a hit.
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FED Mester does not believe the Fed is close to a pause on tightening, while Bullard said that markets are under-pricing the risk the FOMC might be more aggressive. Fed's Williams notices signs of moderating inflation amid supply chain improvement, however more interest rate increases will aid in the restoration of economic balance.
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Oil prices swing wildly in volatile session. In the morning sellers took the advantage as anti-covid protests in Beijing, Shanghai and other major Chinese cities sparked demand concerns. Moods reversed in the evening, after an unconfirmed report from Eurasia Group pointed out that OPEC members may be considering a new production cut when they meet on December 4th.
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Gold and precious metals gave up early gains and moved south amid a stronger dollar. Gold fell 0.80% and is trading around $1742 mark, while silver lost 1.80% and broke below $21.00 level.
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Dollar index rose above 106.40 as global growth concerns lifted demand for safe-haven assets. EURUSD briefly jumped to its highest level since June 2022, however buyers failed to break above 1.05 level and the pair pulled back to 1.0370 level, while GBPUSD returned below the 1.20 mark.
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Bitcoin briefly fell below $16,000, while Ethereum tested $1150 level after crypto lender BlockFi filed for Chapter 11 bankruptcy, which raised more fears over contagion effect which could spread across the industry after crypto exchange FTX went from a $32 billion valuation to bankruptcy in a short period of time due to liquidity issues. BlockFi has over 100,000 creditors and a balance sheet with liabilities and assets ranging from $1 billion to $10 billion.
OIL.WTI has recently been moving in a strong downtrend. Looking at the H4 interval, the key resistance is located around the $79.10-$80 zone, which is marked with the upper limit of the 1:1 structure and previous price reactions. It is also worth paying attention to the currently tested EMA100 (green line), which previously also acted as resistance. Source: xStation5
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