- European indices erased early gains and finished session sharply lower, with DAX plunging 1.39% tracking Wall Street lower, after the final release of the US GDP report, showed that the US economy surprisingly expanded 3.2% in Q3, while claims figures continued to point to a healthy labor market.
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Fresh data pack for the US renewed concerns that interest rates will remain high for longer and will hurt the economies even further. Currently Dow Jones is trading 2.20% lower, while S&P500 and Nasdaq fell 2.70% and 3.50% respectively.
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Tesla stock deepens declines and loses over 9.0% on Thursday, reaching lowest level since August 2020 amid wider tech sector sell-off.
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US stocks will have a chance to move tomorrow, following the release of PCE figures. If the report turns out to be a disappointment, selling pressure may intensify.
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WTI crude also cut early gains and is trading 1.30% lower as expectation of more policy tightening from major central banks and recession fears weigh on demand.
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Precious metals extended yesterday's declines amid a stronger dollar. Gold fell 1.60% and is testing local support around $1785 per ounce, while silver lost 2.30% and dropped below $23.40 per ounce.
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The dollar index rose to 104.50 on Thursday as investors rushed towards safe haven assets. Dollar appreciated strongly against antipodean currencies and the pound. The EURUSD pair also moved lower and is currently testing key support at 10580.
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Major cryptocurrencies are also trading in red, however taking into account pessimistic sentiment of the wide market, the scale of declines is rather small for this type of asset class. Bitcoin price dropped 1.605 to $16550, while Ethereum lost 2.0% and returned below the $1200 mark.
Silver prices are facing significant selling pressure today due to the stronger dollar. If sellers manage to uphold current momentum, a downward move may deepen towards support at $23.07, which is marked with the lower limit of the 1:1 structure and 100 EMA (blue line). Source: xStation5
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