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European indices mostly flat
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Treasury yields lower, tech stocks continue recovery
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Gold near $1900 an ounce
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EURUSD highest since January 2021
European session finished mixed for equities from the region. Most major stock indices closed near the flatline. The German blue chip stock index added 0.18% as German traders returned after the holiday. The British FTSE 100 fell 0.31% while the French CAC 40 dipped 0.28%. US stocks opened higher, but gave up all gains and are currently trading flat.
Based on the bond market moves, inflation fears eased significantly during the past several days. Central bankers might have contributed to that as many of them sent a dovish message. US Treasury 10-year yield fell towards 1.57% today - the lowest level in more than 2 weeks. Such conditions give fuel to the stock market rally, tech stocks in particular. Nasdaq100 (US100) continues to move higher indeed.
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Create account Try a demo Download mobile app Download mobile appThe US dollar is getting weaker against the euro as EURUSD reached an intraday high of 1.2266 today - the highest level since January 8. WTI and Brent move slightly higher, adding 0.12% and 0.22% respectively. Gold prices climbed towards $1900 an ounce in the evening amid falling bond yields and weaker USD.
German Ifo Business Climate for May surprised to the upside as the index rose to 99.2 vs expected 98.2 (previously: 96.6). On the other hand, CB Consumer Confidence from the US for the month of May turned out to be a slight disappointment as the index fell to 117.2 (vs exp. 119.2) while the previous print was revised lower. US new home sales data showed that the number of homes that were sold fell from 917k to 863k (forecast: 970k). This could result from a recent surge in US home prices.
Tomorrow investors will pay attention to RBNZ interest rate decision (3 am BST) and US crude oil inventories data. Apart from that, the calendar will be rather empty. Still, traders might want to tune in and listen to several central bankers’ speeches.
GOLD is currently testing key resistance at $1900 an ounce. Gold prices have been moving in an upward channel since late-March and bulls made some attempts to break above it in recent days. Weaker USD and falling bond yields still support the price of the precious metal. Source: xStation5
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