- German DAX book 15.8% yearly gain
- US Jobless claims fell again below 200k
- Dow Jones and S&P 500 hit new ATH
Today's reading from the US Department of Labor showed that the number of Americans applying for new unemployment benefits has dropped to 198,000, remaining close to the 52-year low of 188,000 from the beginning of December and below analysts' estimates of 208 000. The latest claims data points to an ongoing improvement in the labor market, thus giving the Fed more reasons to accelerate the pace of the tapering process and tightening monetary policy earlier than expected. Both the Dow Jones and the S&P 500 extended records on Thursday after closing at all-time highs the day before, as the “Santa Claus rally" continues ”despite light holiday trading volumes. The Nasdaq rebounded from early losses and was also in the green. In Europe DAX 30 ended slightly up at 15,885 on the last trading day of 2021, remaining close to Tuesday's one-month high of 15,964 and booking a yearly gain of 15.8%. Elsewhere, the CAC 40 held close to a recent record high and the FTSE 100 was little-changed at a 22-month high. Stock markets in Germany, Italy and Spain will be closed on Friday, while Paris and London will trade for half a session, ahead of the New Year.
EURUSD remained very volatile today. After solid data from the US, the most popular currency pair fell towards 1.1300 level. The ongoing end-year flows spoil the real strength of the dollar related to changes in monetary policy and a strong economy.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appThe past year has been very good for most markets, although 2022 may be different. Central banks are withdrawing their support and there is a risk of a potential shock related to higher interest rates. On the other hand, if interest rate hikes do not spark panic, even a moderate economic recovery should be enough to keep markets on their current trajectory. Of course, a pandemic will still pose a risk to which markets react violently, but the movements tend to be short-lived.
King Salman of Saudi Arabia believes that the current OPEC + policy should be continued. The next meeting of oil producers is scheduled for January 4. The latest reports say that OPEC has not changed its opinion regarding the market prospects and intends to continue increasing production by 400,000 barrels a month. Crude oil has tried to extend recent gains, although one can see that the thin does not support market bulls.
Gold prices rose during today's session, which may be related to the muted US dollar. Other precious metals also moved. Bitcoin and other cryptocurrencies have tried to erase recent losses, but from the weekly perspective, most of the digital assets remain in red.
WTI crude (OIL.WTI) prices rose slightly during today’s session, however buyers struggle to break above local resistance at $76.60 which is marked with previous price reactions and 38.2% Fibonacci retrenchment of the last upward wave. Should a break higher occur, then the upward move may accelerate towards $79.90. On the other hand, if sellers will regain control, then support at $71.15 may be at risk. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
