Daily summary: Mixed day for European equities, USD tries to recover

8:43 pm 26 May 2021

  • European stocks flat or slightly lower

  • US markets advance, small caps outperform

  • US dollar recovers against most major currencies

  • NZD soared after RBNZ signalled a rate hike

Wednesday was a mixed day for European equities. Major stock indices from the region finished the session flat or slightly lower. Stocks from Switzerland and Portugal outperformed and managed to post some minor gains. However, equities from the US move higher while Wall Street CEOs are finishing their first day of testimony. The Nasdaq100 (US100) is gaining 0.50%. Russell 2000 (US2000) is a top gainer today as small caps are adding 1.30%

In the afternoon, the US dollar is recovering against all major currencies with the exception of NZD. Gold prices climbed slightly above $1912 an ounce, but most gains have already been erased. Nevertheless, gold bulls still managed to defend the $1900 zone and the precious metal is trading slightly higher on the day. On the other hand, silver prices dropped below $28 level. 

There were only 2 major market-moving events in today’s calendar. Firstly, the RBNZ announced its interest rate decision. The Bank held its official cash rate at a record low of 0.25%, but signalled a 25 basis points rate hike by September 2022 - the message sent NZD significantly higher. In the afternoon, oil prices jumped on DOE’s oil inventories data. The weekly report showed that oil inventories fell by 1.662 mb, more than expected. 

Tomorrow markets will focus primarily on US economic data, including Q1 GDP print, durable goods orders for April and jobless claims (all at 1:30 pm BST). Pending home sales figures from the US will be released at 3 pm BST. 

OIL.WTI started the session lower, but bulls gained advantage near $65.40 a barrel - it remains key short-term support level. A rebound in the second part of the day can be ascribed to the DOE’s weekly report on oil inventories. Taking a look at H4 interval, oil prices clearly struggle with resistance area near $66.40. However, breaking above it could potentially pave the way towards 2021-highs near $67.90 a barrel. 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

Join over 1 600 000 XTB Group Clients from around the world.