- Global stocks under pressure
- Growing tensions in Ukraine
- Gold breaks $1900 level, Bitcoin under pressure
It cannot be denied that the markets currently mainly focus on the potential conflict between Ukraine and Russia. At the beginning of this week, Russia said it was withdrawing its troops from the border. In turn, NATO or the United States claim that the situation looks completely different and the Russian army is preparing for the invasion. There is a lot of uncertainty in the market, but investors do not panic yet. Global indices erased most of the recent gains during today's session after the RIA reported that the Deputy US Ambassador was expelled from Russia. In addition, the US ambassador to the United Nations emphasized that the current deployment of Russian troops indicated that the invasion could begin at any moment. Russian-backed rebels and Ukrainian forces traded accusations that each had fired across the ceasefire line in eastern Ukraine, while Russia previously indicated that on Thursday and Saturday, weapons could be used during maneuvers with Belarus.
Wall Street traded lower on Thursday, with the Dow Jones falling around 400 points while both the S&P 500 and the Nasdaq declined over 1% each. Gold topped the $ 1,900 mark, extending its upward momentum to levels not seen since June of 2021. At the same time, EURUSD remains stable today, while bond yields pulled back in response to the rising risk of armed conflict and yesterday's Fed minutes, which turned out to be slightly less hawkish than it was. expected.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appUS data was rather mixed. Unemployment claims rose to 248k, however continued claims fall below 1.6 million. Meanwhile data from the real estate market was puzzling - number of building permits increased, but house starts dropped to the lowest level in 3 months.
Oil tried to rebound today, mainly due to uncertainty over Russia and Ukraine. On the other hand, information has emerged that the United States and Iran may sign an agreement which may reduce supply problems on the market.
The dollar remained under pressure, but comments from Bullard regarding potential 100bp rate hikes through July raised expectations of more decisive Fed actions. Cryptocurrencies took a hit during today's session, which indicates that the correlation with the stock indices is still strong. Bitcoin fell below $41500, while Ethereum broke below $3000 level.
Binance Coin, which is a native token of world’s largest crypto exchange’s Binance, fell sharply following news that the company has stopped trading activities in Israel as the country’s capital markets authority examines the exchange’s licenses. Currently price is approaching psychological support at $400.00 which is marked with 61.8% Fibonacci retracement of the upward wave launched in June 2021 and lower limit of the triangle formation. 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.