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European and US stocks continue to push higher
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USD weaker across the board after Michigan data
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Precious metals supported by weaker US dollar
European and US equity markets continue to push higher and higher despite some worrying signals from the global economy. Most European blue chip indices finished the day higher and the German DAX (DE30) was even trading above 16,000 pts for the first time in history! The pan-European STOXX 600 gained for the 10th straight session, which is an astonishing result. Major US indices continue the rally as well, reaching new record levels. One might assume that equities are supported by a strong Q2 earnings season, however there are also some alarming reports that investors should be aware of.
Preliminary University of Michigan data for August was a huge miss as it showed that the consumer sentiment for the US slumped to 70.2 (vs exp. 81.2), the lowest since December 2011. Also, long-term inflation outlook rose from 2.8% to 3.0% - another worrying signal given recent high PPI figures and supply chain disruptions. Apart from that, investors were also focused on numerous CPI reports from the Old Continent, but these were mostly revisions.
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Create account Try a demo Download mobile app Download mobile appThe US dollar is weaker across the board after disappointing UoM report. EURUSD is currently testing the 1.18 mark while USDJPY returned below 110.00. Precious metals gain on the dollar’s weakness. Gold is trading above $1,770 an ounce again while silver prices were testing the $23.80 level. Oil markets experience a pullback as supply chain disruptions and ports shutdowns in China may raise concerns about the demand for oil. Cryptocurrency traders start the weekend in upbeat mood as most digital assets advance. Bitcoin is adding roughly 5%.
Taking a look at H1 interval, gold prices continue to move in a short-term upward channel. However, bulls were not able to smash through the upper limit of the pattern today. The next important resistance (apart from the mentioned upper limit of the pattern) may be found near $1,790 - $1,795 an ounce (local lows from July). Source: xStation5
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