Daily summary: Wall Street retreats sharply ahead of key jobs report

9:55 pm 9 March 2023

  • European indices finished today's session mostly in red, with the FTSE100 index edging 0.2% lower and Germany's DAX 40 finishing near the flat line as investors continued to worry about the outlook of a faster interest rate hike by the Federal Reserve this month.
  • Credit Suisse Group was also under pressure after delaying the publication of its annual report. 

  • Wall Street indices erased early gains and moved sharply lower as larger-than-expected increase in jobless claims only temporarily eased concerns that a tight labor market will be the trigger for sharper interest rate hikes especially taking into consideration solid ADP and JOLTs Job data. Market's focus will now turn to the highly anticipated NFP report due Friday.

  • The White House released it's fiscal 2024 budget proposal that projects $6.883 trillion in total spending, $5.036 trillion in revenues.

  • President Biden is scheduled to speak about budget at 7:30 pm GMT today

  • BoC Rogers: Need to see more evidence to fully assess if rates high enough. If evidence accumulates suggesting inflation may not decline in line with our forecast, we're prepared to do more.

  • BoC Rogers: The near-term US and European outlooks for growth and inflation are higher than we expected, this could point to some further inflationary pressure in Canada.

  • Crude prices also moved lower in the evening. OIL.WTI is again testing key support  at $76.10, while Brent pulled back to recent lows at $82.20

  • US dollar weakened slightly on Thursday. The main currency pair rose to 1.0570, while the GBPUSD rate returned above the 1.1900 level. However, given the sentiment over the last few days, the dollar remains strong mainly thanks to Powell's hawkish speech.

  • Precious metals are trading higher amid slower yields. Gold rose over 1.0% and is testing local resistance at $1830, while silver bounced off crucial support at $20.00.

  • NATGAS price fell to support at $2.5after the latest EIA report showed that last week's storage withdrawal was lower than usual for this time of year as mild weather kept heating demand low.

  • Major cryptocurrencies are trading lower, pressured by concerns surrounding Silvergate and Signature Bank. Bitcoin fell to February lows around $21,400, while Ethereum broke below crucial support at $1550. 

US500 continues to move within the local downtrend. Nearest major resistance can be found at 4058 pts, however in the short term it is also worth paying attention to the EMA100 average, which managed to fend-off buyers today. Daily close below the psychological barrier of 4000 pts may encourage sellers to become more active. 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.

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world.