Moods on global stock markets seem to have deteriorated throughout today’s trading day. Asian markets ended the session mostly in the green territory. Trading in Europe was rather mixed, yet equities sank in the afternoon. Even though DAX was gaining over 1%, the German index finished the day 0.04% lower. FTSE 100 fell as much as 1.73% while while CAC 40 dropped 1.21%. U.S. markets became risk-averse too as VIX was up over 11% at one point. Major U.S. indices rolled over and turned negative, Nasdaq seems most resilient today as the index managed to recover and is fluctuating around the flatline now.
After a significant rally in recent days, gold and silver prices are falling today. Gold broke below the $1800 mark. Oil markets are trading below the flatline too - as of writing Brent is dropping 1.85% while WTI is falling 2.50%.
From the data front: investors were surely interested in Germana trade data, especially after last month’s figures took everybody by surprise. Although German exports and imports came in below forecasts, German trade balance managed to beat the consensus and rose to 7.6B after a multi-year low of 3.4B last month. Markets were served U.S. jobless claims too - figures came in slightly better than expected. Initial jobless claims amounted to 1314k (vs expected: 1375k) while previous numbers were revised lower.
Apart from various PPI releases, one might be interested in tomorrow’s industrial production reports from Italy and France. Canada will publish its labour market report for the month of June which might be of great importance. The WASDE report and Baker Hughes oil rig count may be found interesting to commodities traders.
FTSE 100 (UK100) has been trading sideways in recent days. As the index is losing ground today, 5,845 pts support area still seems far away. Nevertheless, it is worth preparing for such circumstances should market moods deteriorate even further (for instance due to rising Covid-19 cases in the U.S.). This support level is additionally strengthened by 38.2% Fibo retracement of the February-March sell-off. Source: xStation5
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