- European indexes close lower
- Mixed moods on Wall Street
- EMISS and cryptocurrencies under pressure
European indices finished today's session mostly lower, erasing some of recent gains which followed central banks’ monetary policy tightening announcements. Still markets remain concerned whether inflation can be brought back to the 2% targets. Automakers stocks were the worst performers after EU countries recorded the lowest count of new car registrations ever for a November month, totaling just over 713k vehicles, due to ongoing chip shortages. On a weekly basis, Frankfurt’s DAX fell 0.3% and the pan-European Stoxx 600 dropped 0.7%.
Mixed moods prevail on Wall Street where Dow Jones dropped over 1%, S&P 500 fell 0.50%, while NASDAQ managed to recoup early losses and is trading 0.25% higher as investors assess a shift in global monetary policy, rising inflation and spread of the omicron variant. Bank shares including GS, American Express, JPMorgan, and Visa, which rose sharply on Thursday, today took a hit. On the weekly basis, Nasdaq fell nearly 3%, while both the S&P and Dow are heading towards 1% loss.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appWhen it comes to commodities markets both WTI and Brent prices tanked over 2%, while gold and silver rose over 1% early in the session, only to give back most of the gains later on amid stronger dollar. EMISS price fell 12% as European leaders failed to reach an agreement regarding energy prices. Downbeat moods can be spotted on the cryptocurrency market. Bitcoin price fell below $47,000, while Ethereum plunged at one point more than 7.50% and tested $3700. However during the US session buyers regained some ground and the second most popular cryptocurrency is currently trading around $3850.
Silver fell sharply following Wednesday’s FOMC decision however buyers managed to halt declines around major support at $21.50 and price quickly returned above $22.00 level. If buyers will manage to uphold momentum, then upward move may accelerate towards $23.00 handle which is marked with previous price reactions or even support at $23.60 which coincides with 23.6% Fibonacci retracement of the downward correction launched in January 2021 and two SMA’s. 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.