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Nasdaq, Dow Jones and Russell 2000 up 1%
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European indices erased early losses and closed higher
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Russian RTS rallies after Putin-Macron meeting
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Oil drops on positive comments on Iran talks
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Turkish authorities encourage converting gold to TRY
European stock markets gained during today's cash session on the Old Continent. While European markets traded mixed at the beginning of today's session, moods started to improve in the early afternoon and majority of European blue chips indices managed to finish the day higher. Russian indices outperformed after Russian President Putin assured French President Macron that the Russia-Ukraine situation will not escalate. Russian RTS jumped 3%, even in spite of a drop in oil prices.
First half of the Wall Street session was also marked with upbeat moods. Following a mixed opening, major US indices moved higher. Nasdaq, Dow Jones and Russell 2000 trade around 1% higher while S&P 500 gains 0.7% at press time. Harley-Davidson rallies 15% following unexpected Q4 profit while Peloton has another day of 20+% gain on the back of CEO departure. Novavax dropped over 10% after Reuters reported that the vaccine maker sees slow progress with vaccine deliveries.
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Create account Try a demo Download mobile app Download mobile appOil takes a hit following upbeat comments on Iranian nuclear talks from Russian, Chinese, US and French officials. Brent and WTI trade over 2% lower. API report on oil inventories will be released later today at 9:40 pm GMT. Elsewhere, precious metals gain with silver breaking above $23 per ounce and gold reaching $1,827 per ounce. Aluminium rallied to 14-year highs amid tight supply and uncertain outlook.
GBP, AUD and NZD are the best performing major currencies while JPY, CAD and CHF lag the most. The US dollar is trading mixed against major currencies even as yields continue to rise, which should provide support for USD. Lira trades flat against USD after Turkish authorities announced today that they will unveil a plan encouraging citizens to convert gold to TRY. Polish National Bank delivered a 50 basis points rate hike - in-line with expectations. However, it failed to provide support for PLN which is dropping against EUR, USD, CHF and GBP today.
Taking a look at US2000 chart at H4 interval, we can see that a potential inverse head and shoulders pattern is building up. Such technical pattern often heralds trend reversal. However, it should be noted that an important resistance zone, marked with market geometry and lower limit of a year-long trading range, can be found above neckline of the pattern. A break above 2,100 pts handle could therefore be seen as a bullish signal. Source: xStation5
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