Daily summary: Global stocks slide as recession fears drag on

7:53 pm 29 June 2022

  • European indexes finished today's session lower as renewed recession fears dented risk sentiment. Dax fell 1.73% and CAC40 ended 0.90% lower, weighed down mostly by real estate stocks, auto makers, and industrials. On economic data, 
  • Germany’s inflation fell to 7.6% in June, slowing from an all-time high of 7.9% in May, while inflation in Spain, jumped to 10.2%, a highest level since1985.

  • Bank of England Governor Bailey said during the ECB event that the British monetary authority would not need to act forcefully to bring down inflation, contrasting with comments from Fed Chair Jerome Powell, but reiterated that the UK economy was beginning to slow.

  • Powell reiterated Fed's commitment to do-whatever-it-takes to control high inflation and said the bigger risk is to fail to restore price stability. The US economy is in a good shape and well positioned to withstand tighter monetary policy although there is a risk it will slow more than needed. He also confirmed the Fed is raising rates expeditiously and aims to move into restrictive territory fairly quickly.

  • US indices erased early gains following Powell’s comments. Dow Jones trades slightly below the flat line, while S&P 500 and Nasdaq fell 0.50% and 0.60% respectively.

  • US Q1 GDP contraction was revised higher to an annualized 1.6%, from 1.5% drop in the second estimate. 

  • CHF and USD are the best performing major currencies, while EUR and GBP lag the most. 

  • We could observe increased volatility on the crude oil market. At the beginning of the session, prices rose sharply as OPEC did not make any decisions regarding production limits. Most likely, OPEC is waiting for the outcome of the meeting between Biden and leaders of Saudi Arabia.

  • US reports that it is talking to Arab nations about increasing production and is taking into consideration release of additional strategic reserves after October. Currently, strategic reserves have dropped below 500 million barrels.

  • Oil inventories, according to the DOE report, fell for the second week in a row (last week's report was released only today). The data showed, however, a significant buildup of petroleum products.

  • US refineries are currently operating at maximum capacity, while inventories in Cushing have dropped to an extremely low, dangerous level.

  • Gold failed to break above $1835 level and pulled back to $1816 while silver trades at $20.74.

  • Similar to stocks, cryptocurrencies also moved lower. Bitcoin again trades below psychological $20.000 level, while Ethereum price dropped to $1090.

OIL.WTI prices bounced off major resistance at $113.30 which is marked with previous price reactions, 23.6% Fibonacci retracement of the last upward wave and two SMAs. Nearest support to watch is located around $109.25.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.

Share:
Back
Xtb logo

Join over 935 000 XTB Group Clients from around the world.

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 2 March 2024
adobe_unique_id cc 1 March 2025
__hssc cc 8 September 2022
SESSID cc 2 March 2024
__cf_bm cc 8 September 2022
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
__hstc cc 7 March 2023
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
hubspotutk cc 7 March 2023

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language