- German inflation accelerates more than expected
- Strong GDP figures from the US
- Twitter (TWTR.US) and Amazon (AMZN.US) are expected to report earnings after market close
European indices erased most of the early gains and finished today’s session lower as the treasury yields rose after US data release and the inflation rate in Germany accelerated more than expected in April. Earlier in the session sentiment was lifted by a bag of strong quarterly earnings reports from Unilever, Nokia, and planemaker Airbus. Among oil majors, Royal Dutch Shell posted better-than-expected quarterly earnings. At the end of the session DAX fell 0.9%, CAC40 lost 0.07% and FTSE100 finished slightly below the flat line.
Also main US indices pared early gains and the S&P 500 and Nasdaq fell from their intraday records. Bulls failed to uphold initial rally in tech shares after investors digested a set of mixed data from the US economy. Weekly jobless claims reached a new low since the pandemic struck and GDP grew 6.4% in Q1 of 2021. However both of these readings did not exactly match analysts' expectations. On the corporate front, earnings from Apple and Facebook both crashed market expectations yesterday, while Caterpillar reported a rise in adjusted first-quarter profit. Meanwhile, Ford said a global semiconductor shortage may slash second-quarter production by half. Amazon, Twitter, Mastercard, Nio and Gilead Sciences will report their quarterly results today after the market closes.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appBoth WTI crude and Brent rose more than 1.6% as optimistic forecasts on recovering demand in the second half of 2021 overshadowed, at least for now. concerns about the impact of rising COVID-19 cases in Asia and South America. Elsewhere gold fell 0.7% to $ 1,768.00 / oz, while silver is trading 0.6% lower, around $ 26.00 / oz as the yield on the benchmark 10-year Treasury note rose to an over 2-week high of 1.677%.
USDCHF fell sharply during yesterday’s Fed Chair Powell conference, however today buyers managed to halt declines around local support at 0.9080 which is additionally strengthened by 200 SMA ( red line). Should break lower occur, then downward move may be extended to the 0.8990 level. However as long as the pair sits above the aforementioned 0.9080 level then another upward impulse towards resistance at 0.9197 may 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.
