- European indices erased early losses and finished today's session around 8-weeks highs, with Dax up 1.03% led by gains in tech stocks.
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European investors ignored another set of weak services PMIs and retail sales which point to recession on the Old Continent.
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Upbeat moods prevail also on Wall Street as investors focused on upbeat earnings results from Paypal and Moderna and shrugged off geopolitical tensions between the US and China and hawkish comments from FED members.
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The cost of borrowing dollars for three months skyrocketed to 2.83%, a level not seen since November 2008, following another hawkish remarks from the Fed members. Today Bullard stated that is taking into consideration that interest rates could rise to 3.75-4.0% level this year!
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On the data front, the ISM Services PMI reached its highest level since April, which is a sign that the US economy is still strong. On the other hand S&P Global US Services PMI was revised higher to 47.3 in July from a preliminary of 47, but down from 52.7 in June to signal the sharpest fall in output since May 2020.
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Brent crude erased early gains and fell to $97.50 per barrel and WTI dropped to $ 91.400 per barrel as OPEC+ decided to slightly increase the production target in September, namely by 100k bpd while US crude oil inventories unexpectedly rose by 4.467 million barrels.
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Gold and silver trade flat around $1760 per ounce and $20.00 per ounce respectively amid a stronger dollar.
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Currently AUD and CAD are the best performing major currencies while JPY and CHF lag the most.
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Cryptocurrencies are trading slightly higher on Wednesday. Bitcoin price is testing $23.400 level, while Ethereum rose to $1660.
Ethereum has been moving with the local ascending channel recently and is approaching the major resistance zone around $1820, which is marked with previous price reactions, 23.6% Fibonacci retracement of the last downward wave and EMA 100 (purple line). Only a decisive break above this level could hint that even bigger recovery move is looming. Source: xStation5
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