Daily summary: Cautious risk appetite returns

19:01 15 July 2022
  • European indices finished today's session higher, erasing some of the recent losses, with Dax jumping 2.76% led by automakers. On the week, the German index shed almost 2%. Next week investors’ attention will focus on the ECB monetary policy decision at which the central bank is expected to deliver its first rate hike in 11 years. 
  • Dow Jones is trading nearly 2.0% higher while S&P500 and Nasdaq jumped 1.6% and 1.4% respectively as better than expected University of Michigan consumer sentiment reading overshadowed stronger than expected retail sales figures. 

  • US retail sales rose 1% MoM in June, beating forecasts of a 0.8% gain, and recovering from a downwardly revised 0.1% drop in May. Figures showed consumer spending remains robust but also reflects a general increase in prices for goods and services, therefore FED will mostly stick to its tightening plans.

  • On the earnings front, BlackRock (BLK.US) and Wells Fargo (WFC.US) posted disappointing quarterly results, while Citigroup (C.US) surprised on the upside.

  • WTI oil tested $95.00 level, while Brent jumped above $101.00 as Saudi Arabia is not expected to unilaterally announce any oil production increase during the meeting with President Biden. Additional production in most OPEC member countries is reaching maximum capacity. 

  • Copper prices fell briefly below $7,000 for the first time since 2020, however later in the session buyers managed to erase most losses.

  • Mixed moods prevail on the precious metals market. Gold again tested $1700 - level not seen since August 2021, as greenback continues to trade near 20-year highs and Treasury yields remain elevated. Meanwhile while silver rose over 1.5% and is approaching resistance at $18.70 

  • Major cryptocurrencies strengthened during today's session as risk-on sentiment returned. Bitcoin tested resistance at $21,000 and Ethereum broke above $1200 level.

GOLD - sellers again failed to break below psychological support at $1700 which is marked with lower limit of the 1:1 structure. As long as price sits above another upward impulse may be launched. On the other hand, should a break lower occur, the next target for bears lies at $1670, where lows from March 2021 are located. Source: xStation5

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back

Join over 1.4 Million investors from around the world