- Downbeat sentiment caused by the hawkish stance of major central banks persisted today and put further pressure on global indices
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The DAX lost 0.67% today, but it is worth noting that the sharpest declines took place yesterday after ECB President Lagarde press conference
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Today we have the so called "day of 3 witches", i.e. the expiration of index futures, which may support downward move in particular on Wall Street, where the S&P 500 lost 1.7%, the Dow Jones fell 1.6% and the Nasdaq 100 fell 1.4%
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Sell-off on Wall Street was accelerated by another set of hawkish comments this time from FED's Williams and Daly. Williams pointed out that the Fed may raise the rate higher than the forward rate implies, while Daly mentioned that her inflation forecast has increased significantly and the unemployment rate needs to rise well above 4% in order to lower inflation. Daly also said that 11 months at peak rate is quite a reasonable starting point.
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Gas prices fell sharply, even as low temperatures persisted in Europe and the United States. Both TTF gas and NATGAS lost approx. 8%. After yesterday's strong upward move, NATGAS price fell today from $7/MMBTU to $6.3/MMBTU. However, as the end of the session buyers become more active
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Crude oil at one point fell 3.5% during today's session amid growing recession fears, however news that US DoE will start replenishing SPR reserves from February lifted moods slightly.
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Despite hawkish policymakers and a stronger dollar, precious metals managed to erase some of yesterday's losses. Gold is trading around local resistance at $1,790, while silver returned above the $23.00 mark.
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Mazars breaks cooperation with Binance fearing the stability of the cryptocurrency market. The report on the security of the largest cryptocurrency exchange in the world also disappears. Cryptocurrencies also moved lower on Friday, after the accounting firm Mazars, which recently created a report regarding Binance reserves, announced that it was suspending cooperation with all cryptocurrency clients. Bitcoin fell below $16,800, while Ethereum broke below psychological support at $1200. Binancecoin coin fell over 6.0% to $240.00 level.
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The US PMI indexes for December feel more than expected, staying clearly in the contraction area. Industrial retreated to 46.2 pts level and services dropped to 44.4 pts.
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Flash PMIs in Europe were mixed. Most have rebounded, but all indices remain below 50 pts.
Despite negative sentiment SILVER price erased early losses and jumped above $23.00 level. As long as price sits above, another upward impulse may be launched towards key resistance at $24.00. Source: xStation5
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