- European indexes finished session lower, with the Dax falling 1.86% and CAC40 1.41% amid rising recession fears.
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Italy FTSE MIB plunged 3.44% amid political instability. Mario Draghi will resign as Italian prime minister after the Five Star Movement, one of the parties in the coalition government led by Draghi, opposed a new decree aimed at lowering inflation and rising energy costs.
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Major Wall Street indices are trading over 1.0% lower as weekly claims jumped to the highest level in 8 months, while PPI inflation accelerated to 11.3% in June, the largest increase since a record 11.6% in March.
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JPMorgan Chase and Morgan Stanley both posted weaker than expected quarterly results, which is a poor start to the earnings season.
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Dovish comments from one of the biggest Fed hawks, Waller, brought some relief for bulls. He does not expect a 100 bp hike unless retail sales and housing starts are "materially" above expectations, Waller said that 75 bps would get the Fed to neutral and "you don't want to overdo rate hikes".
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The EURUSD pair again fell below parity to a 20-year low. A weaker Euro could lead to further inflationary pressures in Europe, forcing the ECB to raise borrowing costs faster than anticipated.
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Currently USD and NZD are the best performing major currencies while JPY and CAD lag the most.
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OIL.WTI price plunged briefly to $88.00 level as recession fears and expectations that President Biden would reach some kind of a deal with Saudi Arabia pushed prices lower. Sellers managed to erase some of the losses later in the session, nevertheless oil is trading at prices below the level from when Russia invaded Ukraine in late February.
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Precious metals fall sharply on Thursday. Gold tested $1700 - level not seen since August 2021, while silver plunged below $18.30 as greenback continues to trade at 20-year highs and Treasury yields remain elevated.
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Major cryptocurrencies strengthened during today's session, despite weak performance of stock indexes with which they are strongly correlated. Bitcoin jumped above $20,400 and Ethereum approaches $1175 level.
Gold price fell over 2.0% during today's session, however support at $1700 market with lower limit of the 1:1 structure managed to halt declines at least for now. Source: xStation5
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