Daily summary: Subdued start to a busy week

8:53 PM April 12, 2021

  • European stocks close slightly below flat line
  • US indices struggle for traction

European indices finished today's session slightly lower as the latest coronavirus developments weighed on market sentiment. German officials are planning to introduce legislation which would allow the government to implement national restrictions without the consent of the regional authorities. Meanwhile Dutch officials said it would extend night curfew and other restrictions until April 28th. On a brighter note, non-essential shops, gyms and art galleries are reopening in England, despite the slowing pace of the COVID vaccinations. DAX 30 closed near the flat line at 15,229, CAC40 fell 0.13% and FTSE 100 lost 0.39%.

US indices are swinging between gains and losses before the first-quarter earnings season and the release of widely-expected inflation figures. Markets expect broadly positive news and an uptrend for US equities thanks to a recovering economy. Goldman Sachs, JPMorgan Chase and Wells Fargo are the first major companies which will report quarterly results on Wednesday. On the data front, besides inflation rate which will be published tomorrow, investors will focus on export and import prices, retail sales and industrial production data. Yesterday, Fed Chair Powell said during an interview to CBS news' "60 Minutes" the Fed wants to see inflation above 2% for an extended period before officials move to raise interest rates. “We want to see inflation move up to 2% — and we mean that on a sustainable basis, we don’t mean just tap the base once,” Powell “But then we’d also like to see it on track to move moderately above 2% for some time.” Powel also said that thanks to accelerated Covid-19 vaccine rollout and strong fiscal support, the US economy appears to be at a turning point.

WTI crude rose more than 0.6% and is trading slightly below $59.70 a barrel, while Brent is trading nearly 0.5% higher around $63.20 a barrel. Elsewhere gold fell 0.55% to $ 1,733.00 / oz, while silver is trading 1.50 % lower, around $ 24.80 / oz . The yield on the benchmark 10-year Treasury note yields rose slightly  to 1.67%, following a three-year and ten-year note auction.

Silver bounced off the resistance at $ 25.60 at the end of last week and the downward move continues after the weekend. If the current sentiment prevails, downward move could be extended to the recent lows at $ 24.00 which is marked with the lower limit of the overbalance structure. Source: xStation5

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