- European indices erased yesterday's gains and finished today's session sharply lower. DAX fell 1.26% while the CAC40 and FTSE100 dropped 1.20% and 1.07% respectively;
-
Wall Street completely negates the gains of the past few days. The Dow Jones is down 3.27%and is heading for its biggest loss since 2020, while the S&P 500 and Nasdaq tumbled 3.52% and 4.37% respectively;
-
Today's US housing market data showed signs of cooling off. Building permits dropped 3.2% from a month earlier while housing starts declined 0.2% mom to an annualized 1.724 million units in April, after a revised 2.8% drop in March and below market forecasts of 1.765 million.
-
The entire retail sector in the US is performing disastrously as profits are eaten by rampant inflation. The massive sell-off continues at Walmart, which has lost nearly $60 billion in capitalization in just two days. Shares of Target and Costco are down 25% and 12% today, respectively.
-
S&P Dow Jones Indices removed Tesla from its S&P500 ESG index due to concerns how the electric carmaker is handling autopilot crashes;
-
Standard & Poor's analysts today cut the growth rate for the US economy by 80 basis points from 3.2% to 2.4%.
-
The EURUSD pair fell below the 1.049 barrier after US Fed Evans reaffirmed the baseline scenario of 50 bp hikes at the next and subsequent meetings, while markets hoped for more dovish comments.
-
JPY and CHF are the best performing major currencies, while GBP and EUR lag the most ;
-
Brent and WTI oil prices fell nearly 3% as fears regarding looming recession returned.
-
Gold benefited from worsening moods and the commodity is currently trading at $1820.
-
Extreme fear prevails on the crypto market. Bitcoin fell below $29,000 and Ethereum broke below the psychological barrier of $2,000.
Risk-off sentiment once again dominated the markets. European and US indices resumed downward moves and NASDAQ index is currently struggling to stay above the psychological support at 12,000 points. Large companies such as Walmart and Target cannot cope with the rising inflation, which raises concerns about the situation of companies from other sectors with a less established position on the market. Oil prices fell sharply despite the unexpected decline in US crude inventories. The risk-off sentiment supported the valuation of gold, which returned above 1820 USD. Cryptocurrencies were overwhelmed by a wave of panic, with BTC falling below 29 000 USD.
US500 pulled back sharply during today's session and is again testing key support at 3965 pts which is marked with a lower limit of the 1:1 structure and lower boundary of the descending channel. If current sentiment prevails the next target for sellers is located around the 3800 pts area which coincides with 38.2% retracement of the upward wave launched in March 2020 can be found. On the other hand if buyers regain control, then another upward impulse towards resistance at 4180 pts may be launched. Source:xStation5
Start investing today or test a free demo
Create account Try a 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.
