- Wall Street rebounds on Friday
- European stocks mostly lower on inflation worries
- Cryptocurrencies rose sharpy
- The dollar weakens at the end of the week
European indices finished today's session mostly lower as inflation fears resurfaced again. Preliminary data showed the Eurozone consumer price inflation jumped to a 13-year high of 3.4% in September. This is in contrast to what ECB President Lagarde said recently that there are no signs that recent price increases are becoming broad-based across the economy. Meanwhile, retail sales in Germany increased less than expected in August and manufacturing PMI data came in line with market expectations for both the Euro Area and Germany. For the week, the DAX fell over 3%, the most since the end of January.
US indices are trading higher during today’s volatile session as potentially game-changing news on the pandemic front lifted market sentiment. Merck (MRK.US) announced that its experimental Covid-19 drug reduces the risk of death and hospitalization by 50% in a study. On the data front, personal spending beat market expectations and PCE prices continued to point to high inflationary pressure. The ISM Manufacturing PMI pointed to another month of strong growth in factory activity in September.
Today's session ends negatively for the dollar. NZD gained 0.7%, GBP added 0.67% and AUD jumped 0.63% against the US currency. Other major currencies also strengthened in relation to the greenback.
We could observe strong movements in the cryptocurrency market today. In the evening hours, Bitcoin and Ethereum strengthen around 9%. Prices have left the consolidation zone, which may result in a resumption of an uptrend. Altcoins were also doing phenomenal on Friday. Among the new cryptocurrencies available in XTB's offer, Chainlink and Polkadot recorded the strongest 11% increases.
Precious metals are also having a good day, thanks to the weakening of the USD. Silver gained over 1.75% today, while platinum went up 1.15% and palladium added 0.8%. On the other hand, the situation on the gold, which strengthened only 0.15%, may be puzzling, however this may be related to the technical situation.
Next week, investors will focus on data from the US labor market.Also the decisions of Australian and New Zealand central banks will be in the spotlight. Crude oil traders will focus on OPEC meeting and decisions regarding oil production levels.
Gold prices made a dynamic upward correction yesterday, but today precious metals swing between gains and losses. Nevertheless, the situation on the H1 interval looks quite interesting. Price tests the upper limit of the downward channel, which is additionally strengthened by the upper limit of the 1:1 structure. According to the Overbalance methodology, as long as the price remains below the $ 1,765.5 level, continuation of the downward move looks probable. If current sentiment prevails, the next targets for sellers are located around $1743 and $ 1722 levels.
GOLD interval H1. Source: xStation5
Daily Summary: Tech sector fears send markets lower
US OPEN: Mild optimism at the start of the week
🍫Cocoa Retreats from Monthly High
Crypto news: Bitcoin slides below $90k again🚩Cryptocurrencies under pressure
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.
