- European stocks rebound
- US stocks rose slightly in volatile session
- Precious metals prices move higher
Positive moods prevailed on the European markets today and majority of the indices from the Old Continent gained over 1% as concerns regarding embattled Chinese developer Evergrande eased at least until Thursday when the company is set to pay out interest on its bonds. Missing this payment may again worsen market sentiment. Also many investors believe that even if the company declares bankruptcy then the Chinese government will not let the crisis spiral out of control. Further supporting sentiment, the OECD's economic outlook report showed the Euro Area economy will likely expand 5.3% in 2021, compared to 4.3% growth projected in May.
US indices are trading slightly higher, attempting to rebound from yesterday's sharp sell-off, during which Dow Jones recorded its biggest one-day drop since July 19 and the S&P 500 and the Nasdaq suffered their biggest daily decline since May. On the corporate front, Uber shares were a standout, jumping 12% after raising its outlook for the third quarter. Investors now await the Federal Reserve's meeting outcome on Wednesday as it is expected to step closer to tapering.
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Create account Try a demo Download mobile app Download mobile appOn the commodities markets, WTI crude rose more than 0.27% and is trading slightly below $70.40 a barrel, while Brent is trading nearly 0.40% higher above $74.20 a barrel. Russia believes global oil demand may not recover to its levels of 2019, as the energy balance shifts, the TASS news agency reported on Tuesday, citing the draft state budget. Meanwhile, Royal Dutch Shell, the largest US Gulf of Mexico oil producer, expects the damage to offshore transfer facilities from Hurricane Ida will cut production into early next year. Elsewhere gold rose 0.70% to $ 1,776.00 / oz, while silver is trading 1.4 % higher, above $ 22.50 / oz amid a weaker dollar. Cryptocurrencies attempted to rebound early in the session, however moods worsened again in the second part of the day. Bitcoin trades below $42,000 while Ethereum trades near $2,900 mark
Silver pulled back sharply in recent days, however buyers managed to halt declines around major support at $22.00 which is marked with a lower limit of the 1:1 structure and previous price reactions. As long as the price sits above it, further upward impulse towards resistance at $23.71 may be launched. This level coincides with the 200 SMA (red line) and downward trendline. On the other hand, should the break lower occur, downward correction may deepen towards next major support at $19.00. Source: xStation5
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