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The first stock market session of this week on the European markets turned out to be relatively mixed. The German DAX lost 0.01%, and the Euro Stoxx 50 benchmark added just 0.1%.
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However, a bullish tone dominated Wall Street, where the Dow Jones is gaining over 1.1%, and the Nasdaq is adding more than 0.25%. The sectors currently performing best are: financial companies, industrial, and healthcare. The only sub-index currently being quoted below the line is the technology sector.
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In an interview, Huw Pill, a member of the BoE board, expressed his concern about the recent inflation data, which show signs of greater durability. The general tone of the remarks seems hawkish, however, it is worth remembering that Huw Pill is seen as a hawkish representative of the Bank of England.
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John Williams from the New York Fed in an interview with the NY Times indicated that he sees chances for interest rate cuts next year. He emphasizes that inflation has fallen as hoped, but he still sees a chance for a deterioration in the job market situation, which will cool the economy and continue to impact limiting inflation. The cuts will, of course, depend on data, so the key will be a drop in inflation towards the target.
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The company that is attracting the most attention from investors today is Berkshire Hathaway managed by Warren Buffett. The company's shares are currently gaining almost 3.5% and thus reach their new historical maximum.
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On the FX market, the biggest increases today are seen in the British pound and the Canadian dollar. On the other hand, the loser on the broad FX market is the Japanese yen.
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On the commodities market, the largest price deviations today are seen in natural gas, which is gaining more than 6.5% due to new weather forecasts, indicating another heatwave in the USA.
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Increased volatility is also noted in wheat. Russia has intensified shelling of Ukrainian ports after withdrawing from a grain export agreement to the Black Sea. In addition, attacks by Ukrainian naval drones on Russian naval ships have recently become more frequent. It was reported that besides Russian warships, a Russian tanker was also a target over the past weekend. Wheat contracts (WHEAT) are currently gaining nearly 4.7%.
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In the cryptocurrency market, we are observing a collapse in sentiment today. Bitcoin loses 0.40%, but more importantly, the BTC price has fallen below 29000 for another time recently. This may indicate a continuation of declines around the next support level at $28100."
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