- S&P 500 and the Nasdaq remain at record highs
- Weakest NFP report in eight months.
- Precious metals under pressure
European bourses finished the final session of the week higher as better-than-expected industrial data and factory orders from Germany lifted market sentiment. Meanwhile, investors remained concerned about record COVID infections and new lockdowns across Europe. ECB economic bulletin showed that Euro Area economic indicators pointed to a fourth-quarter economic contraction. DAX 30 gained 0.58%, CAC40 rose 0.65% and FTSE100 finished 0.2% higher.
US indices are trading mixed. Dow Jones erased early gains and is trading 0.3% lower, mainly due to poor performance of 3M, Verizon and Goldman Sachs stocks. Meanwhile S&P 500 and the Nasdaq reached fresh all-time highs even despite grim NFP report which showed that payrolls fell by 140K well below market expectations of a 71K rise mainly due to losses in leisure and hospitality, private education, and government while manufacturing employment came above analysts' expectations. However it seems that sentiment continued to be supported by hopes for more fiscal stimulus in Washington following the Democrat victories in Georgia runoff elections. On the week, the Dow is on track to gain more than 1% and both the S&P 500 and the Nasdaq around 2%.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appUS crude futures are trading 1.85% higher at $51.78 a barrel, while Brent contract rose 2.15% to $ 55.55. Elsewhere, gold futures fell 3.6% to $ 1,843.00 / oz, while silver plunged more than 8% and is trading near $ 24.80 / oz as bond yields rallied in the United States. This drove money into the US dollar, which negatively affects precious metals. Bitcoin reached new all-time high at $ 41,800.
Gold fell sharply today as Senate runoff elections in Georgia and riots in US Capitol pushed the dollar and Treasury yields up. At the moment price is testing 200 SMA (red line). If the current sentiment prevails, the downward move could be extended to the 1820/oz handle or even 1765.00/oz level. On the other hand, if buyers will manage to halt declines here, then another upward move towards resistance at $1858.00/oz could be launched. 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.
