- Eurozone inflation rate at over 1-year high
- S&P 500 reached new record high
- President Biden unveils infrastructure plan
- Private payrolls rose at the fastest pace since September 2020
European indices finished today's session mostly in red as the inflation rate picked up in March and reached the highest level in over a year. However this increase is expected to be short lived due to the base effect and weaker economic outlook for the region. Europe is struggling to contain the third wave of the pandemic and is clearly behind the US and the UK when it comes to Covid-19 vaccination. Germany limited the use of the AstraZeneca vaccine to people over 60 while France reported the highest number of patients in intensive care units since the beginning of this year.
US indices rose sharply as today is the last session of March as well as the end of the quarter. Investors should expect volatile trading to continue as pension funds and other big investors rebalance their portfolios. During today’s session S&P 500 reached a new all-time high and the Nasdaq rose nearly 2%, as investors awaited President Biden's speech and more details regarding the stimulus package which includes spending on infrastructure and green-energy. On the data front, the ADP report showed the private sector created 517K jobs, the most since September 2020 although figures came below analysts’ expectations of 550K.
WTI crude fell more than 1.20% and is trading slightly below $59.80 a barrel, while Brent is trading 0.70% lower, around $63.70 a barrel ahead of tomorrow’s OPEC+ meeting where major producers are likely to extend the current production cut into May. Meanwhile, US crude oil inventories fell by 0.876 million barrels, breaking a five-week period of increases and missing market forecasts of a 0.107 million advance, according to the EIA Petroleum Status Report. A lot has happened today in the precious metals market. At the end of the day gold is rising 1.7%, while silver is trading 1.9% higher. The prices of platinum (+ 1.5%) and palladium (+ 2.2%) also saw solid increases. Looking at the gold market from a technical point of view, one can see a rebound after yesterday's declines. Buyers appeared near the recent lows around $1680, which indicates that potential double bottom structure is forming. If buyers will manage to uphold momentum, then another upward impulse towards the resistance zone at $ 1750 could be launched.
Gold interval H4. Source: xStation5
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