- European indices took a hit amid rising geopolitical tensions
- Wall Street extends sell-off
- Bitcoin price rebounds
European indices finished today's trading sharply lower, in what was the worst session since November 26th. All major bourses from the Old Continent fell 3.6% on average as investors remain concerned about growing tensions at the Russia-Ukraine border. After talks between Russia and NATO members failed to lower tension, imminent military activity at the Russia-Ukraine border led the US and the UK to remove embassy staff from Kyiv. At the same time, investors monitor the possible implementation of sanctions imposed on Russia and its repercussions with EU trade, particularly for energy. Meanwhile the latest PMI data showed private sector growth rates in the Eurozone and the UK slowed sharply to 11-month lows.
US stocks continue to move lower on Monday as investors are preparing for the Federal Reserve meeting on Wednesday during which the central bank is expected to announce its first rate hike since 2018 on Wednesday. At one point S&P 500 shed 3.9%. The benchmark is down more than 10% from its intraday high. Dow Jones is trading 2.20% lower while Nasdaq fell more than 4% however managed to partially erase some losses later in the session. Also several big tech companies will post their quarterly earnings this week including IBM, Microsoft, Tesla, and Apple, which may also cause some additional volatility.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appMixed moods prevail today in commodity markets amid stronger dollar while US 10-year Treasury which fell to 1.71%. Gold is testing $1,840.00 level while silver pulled back to support at $ 23.60. WTI oil fell 2% and tested $82.00 level while Brent plunged at one point 4% and is trading around $85.40.
Major cryptocurrencies launched today's session in sour moods, however sellers failed to uphold momentum and prices rebounded. Bitcoin jumped above $36 000 level while Ethereum is currently approaching $2400 level.
Gold prices remain in an uptrend. The $ 1,830 zone successfully held back the sell-off early this week. If current sentiment prevails, the bullish move may accelerate towards the recent high around $1850. 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.
