- WTI crude oil price highest since 2014
- Downward correction of the US dollar
- Global stocks under pressure
Despite Monday's session, which is usually quite calm, today we saw a bit more volatility. The macro calendar for today was virtually empty, but investors focused on the energy crisis. Today's OPEC + recommendation to keep production levels unchanged resulted in strong increases in crude oil prices. Today's cartel decision turned out to be a surprise, as ahead of the meeting investors expected an increase in production due to rising oil prices.
European indices started the week in a negative mood, with DAX down 0.8% to a 5-month low as concerns around the energy crisis and rising inflation weighed on market sentiment. Elsewhere, trading in the shares of Chinese property group Evergrande was suspended on the Hong Kong stock exchange after some bondholders said the company had missed a second interest payment.
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Create account Try a demo Download mobile app Download mobile appUS equities fell sharply as investors continued their rotation out of technology stocks amid rising bond yields. Dow Jones fell more than 1% while the S&P 500 shed more than 1.5% to a 10-week low and the Nasdaq slumped more than 2.3%. Investors are still concerned about rising inflationary pressure and today's comments from Bullard did not improve moods. Central banker said inflation might not fall back to the Fed's 2% goal. We are going to have more inflation than we're used to for some time..
Another factor that caused the stock market to slip today is the threat of a trade war between the US and China. According to recent information, the US is not satisfied with the way China respects the trade agreement (however, the US has not yet decided to introduce new restrictions).
When it comes to the commodity market, investors focused on crude oil, the price of which continues to climb after OPEC + decision. In the evening hours, both WTI and Brent crude oil are trading 3% higher. On Monday, we could observe a weakness in the US dollar market, which is losing the most against the Swiss franc.
Upbeat moods prevail on the cryptocurrency market. Looking at the Bitcoin chart, slight pullback occurred early in the session, however sellers failed to break below the short-term support at $ 47,500. The zone marked in green is marked with earlier price reactions, 23.6% Fibonacci retracement, and the lower limit of the 1: 1 structure. According to the Overbalance methodology, the trend remains upward and a further move to the north is possible.
Bitcoin interval H1. Source: xStation5
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