Daily summary: Global stocks fall on mixed data

18:59 16 July 2021
  • Stocks reverse gains in afternoon trading
  • US retails sales rise unexpectedly
  • US consumer morale weakens
  • Silver fell more than 2%

European indices erased early gains and finished today's session lower as inflation concerns  and spread of delta variant continued to weigh on market sentiment. The largest decreases were recorded in the most economically sensitive sectors of the market such as consumer discretionary, energy and financials. Meanwhile new car sales in the EU jumped 10% in June from a year earlier, however still remained below pre-pandemic levels. Eurozone inflation eased in June after accelerating to a 2-1/2-year high of 2% in May while the bloc's trade surplus shrank in May due to a decline of exports. For the week, the DAX 30  fell 1%. The FTSE 100 lost nearly 2%, the CAC 40 dropped around 1.3%, the FTSE MIB went down 1.2%, and the IBEX 35 eased 1.5%.

US indices are also trading under pressure despite a bullish start, as a worse-than-expected consumer sentiment reading overshadowed strong retail sales numbers and earnings reports. UoM data showed an unexpected deterioration in US consumer morale in July due to concerns about inflationary pressure. Latest retail sales figures beat analysts’ expectations. US retail trade rose 0.6 % from a month earlier in June, following a revised 1.7 % decline in May. Excluding autos, those sales jumped 1.3%, beating economists’ estimate of a 0.4% gain. The Dow Jones fell 0.40% and both S&P 500 and the Nasdaq are trading 0.30% lower.

WTI crude rose more than 0.60% and is trading slightly above $72.10 a barrel, while Brent is trading nearly 0.50% higher around $73.80 a barrel. Elsewhere gold fell 0.80% to $ 1,814.00 / oz, while silver is trading 2.25 % lower, around $ 25.70 / oz amid a stronger dollar. The yield on the benchmark 10-year Treasury note remains near 1.30%, which is the lowest level since mid-February.

Silver has been trading in a local sideways move recently. Today sellers failed to break below the support at $25.60 and continued range trading looks to be the base case scenario at least in the short-term. On the other hand, should declines continue, investors should focus on the $24.90 handle, where the previous price reactions can be found. However, in case buyers will manage to regain control and we finally see a break above the resistance at $26.57, the upward move may accelerate. Source:xStation5

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