- European indices had their worst session since October
- US stock under heavy selling pressure
- Oil plunges 8%
European indices finished today's session deeply in red and posted their worst day since October amid concerns over inflation and rising number of new Covid-19 infections around the world. Economically sensitive market sectors such as energy and financial companies were hit hardest. England lifted all remaining restrictions today amid skepticism among epidemiologists as COVID-19 cases spread. On the political front, market participants continued to monitor a possible shift to the dynamic of Germany's upcoming elections following the country’s weather disaster, with the centre-right bloc’s lead over the Greens narrowing to 10%. DAX 30 fell 2.6%, CAC40 lost 2.54% and FTSE100 finished 2.34% lower.
Negative moods prevail also in the US where all three main US stock indexes fell 2% on average, with cyclical stocks including airlines and banks among the worst performers. The yield on the benchmark US 10-year Treasury note reached a 5-month low of 1.177% after hitting 1.45% early in the month. Meanwhile, the earnings season continues United Airlines, American Airlines, Johnson & Johnson, Coca-Cola, Honeywell, IBM, Intel and Netflix due to report during the week.
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Create account Try a demo Download mobile app Download mobile appWTI crude plunged more than 8.00% and broke below $66.00 a barrel for the first time since end of May, while Brent is trading nearly 7.00% lower around $68.60 a barrel after OPEC+ decided to increase the oil supply from August until December 2021 by a further 2 million bpd or 0.4 million bpd a month. Elsewhere gold managed to erase most of the early losses and is trading 0.17% lower around $ 1,807.00 / oz, while silver lost 2.25 % amid a stronger dollar.
Silver has been trading in a local sideways move recently, however today sellers managed to break below the support at $25.60 which now acts as a resistance. If current sentiment prevails, traders should focus on the $24.90 handle, where the previous price reactions can be found and $23.71 which is marked with the lower limit of the 1:1 structure. However, in case buyers will manage to regain control then upward move towards the aforementioned $25.60 level may be launched. Source:xStation5
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