- European indices finished the week on a bearish note. DAX fell 2.48%, CAC 40 lost 1.99% and FTSE100 fell 1.39% ahead of the second round of the French presidential elections this Sunday, with incumbent Macron leading polls.
- All major Wall Street indices trade in read as investors increasingly bet the Fed will need to raise rates faster to rein in soaring inflation. Dow Jones hit, 5-week low of 34102 pts, S&P500 fell 1.92% and NASDAQ dropped 1.84%. All three main US stock indexes are now on track to post weekly declines.
- US PMI report showed broadening service sector inflation, while factory activity rose more than expected.
- Oil extended declines amid prospects of slower demand from China and the potential ban on Russian oil. Brent trades around $106.65 per barrel, while WTI fell to $102 per barrel
- Precious metals also took a hit amid stronger dollar and surging treasury yields. Gold dropped to $1935.0 while silver tested $24.00 level
- USD and EUR are the best performing major currencies while AUD and NZD lag the most
- Cryptocurrencies followed the footsteps of US indices, which indicates that their correlation between these two classes of assets is still strong. Bitcoin fell $39,300 while Ethereum dropped below the psychological $3000 level.
The final session of the week brought dynamic declines in equity markets. Investors ditched stocks and rushed towards the dollar, which appreciated thanks to uncertainty surrounding the outcome of Sunday's presidential elections in France and expectations of a more aggressive tightening of monetary policy. Pessimism also spilled over the cryptocurrency and commodity markets. The VIX volatility index, which measures the level of fear on the markets, rose more than 16% today.
NZDUSD pair fell sharply this week and is currently testing strong support at 0.6640 which coincides with lower limit of the descending channel and 78.6% Fibonacci retracement of the upward wave launched at end of January 2022. Source: xStation5
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appThe 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.
