- European indices finished today's session lower after unsuccessful rebound attempt as markets weighed the impact of an impending win by Italy's first right-leaning government since World War II, as well as Moscow's latest moves to annex the areas of Luhansk, Donetsk, Kherson, and Zaporizhzhia into Russia. Dax finished 0,46% lower, while CAC40 lost 0.24%.
-
Major Wall Street indices erased early gains and are heading towards 5th losing session. Dow is trading 1.25% lower, the S&P 500 fell 1.15% and the Nasdaq 0.5% amid another set of hawkish comments from policymakers and
-
Fed's Collins believes that inflation is most likely nearing or has already peaked, however additional tightening is needed to rein in stubbornly high inflation and cautioned the process will require some job losses. She also expects significantly slower growth in 2022, while next year's economic growth will also be slower.
-
EURUSD pair hovers around its weakest level since June 2002 as remarks from ECB president Lagarde regarding neutral interest rates provided only short-term relief for market bulls.
-
The British pound tumbled to record lows against the USD amid persistent concerns over the government's credibility and uncertainty over how the new mini-budget will be paid. The BoE issued a statement saying it will not hesitate to change interest rates as necessary to return inflation to the 2% target, however this did not provided support for GBP.
-
BoE statement also lowered expectations regarding future rate hikes. Traders now expect a 150 bps rate hike in November compared to previous expectations of 200 bps hike.
-
Currently USD and EUR are the best performing major currencies while NZD and GBP lag the most.
-
Strong dollar and demand concerns caused by weak macroeconomic outlook put pressure on oil prices. WTI is testing major support at $76.50, while Brent broke below $83.00, a level not since mid-January 2022.
-
Precious metals are also retreating as surging Treasury yields reflect expectations for tighter monetary policy. Gold fell to $1635 per ounce, hitting the lowest levels since April 2020, while silver plunged over 2.0% to $18.40 per ounce.
-
Despite broad negative sentiment, major cryptocurrencies are holding firm, which may be a sign of weakening correlation between BTC and US100. Currently the king of crypto is trading around $19,000, while Ethereum managed to defend key support at $1300.
SILVER price fell sharply on Monday and broke below local support at $18.60 which coincides with 61.8% Fibonacci retracement of the upward wave launched in March 2020. If sellers manage to uphold current momentum, a downward move may accelerate towards key support at $17.50, which is marked with lower limit of the local 1:1 structure and recent lows. 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.
