- German DAX book 15.8% yearly gain
- US Jobless claims fell again below 200k
- Dow Jones and S&P 500 hit new ATH
Today's reading from the US Department of Labor showed that the number of Americans applying for new unemployment benefits has dropped to 198,000, remaining close to the 52-year low of 188,000 from the beginning of December and below analysts' estimates of 208 000. The latest claims data points to an ongoing improvement in the labor market, thus giving the Fed more reasons to accelerate the pace of the tapering process and tightening monetary policy earlier than expected. Both the Dow Jones and the S&P 500 extended records on Thursday after closing at all-time highs the day before, as the “Santa Claus rally" continues ”despite light holiday trading volumes. The Nasdaq rebounded from early losses and was also in the green. In Europe DAX 30 ended slightly up at 15,885 on the last trading day of 2021, remaining close to Tuesday's one-month high of 15,964 and booking a yearly gain of 15.8%. Elsewhere, the CAC 40 held close to a recent record high and the FTSE 100 was little-changed at a 22-month high. Stock markets in Germany, Italy and Spain will be closed on Friday, while Paris and London will trade for half a session, ahead of the New Year.
EURUSD remained very volatile today. After solid data from the US, the most popular currency pair fell towards 1.1300 level. The ongoing end-year flows spoil the real strength of the dollar related to changes in monetary policy and a strong economy.
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Open account Try demo Download mobile app Download mobile appThe past year has been very good for most markets, although 2022 may be different. Central banks are withdrawing their support and there is a risk of a potential shock related to higher interest rates. On the other hand, if interest rate hikes do not spark panic, even a moderate economic recovery should be enough to keep markets on their current trajectory. Of course, a pandemic will still pose a risk to which markets react violently, but the movements tend to be short-lived.
King Salman of Saudi Arabia believes that the current OPEC + policy should be continued. The next meeting of oil producers is scheduled for January 4. The latest reports say that OPEC has not changed its opinion regarding the market prospects and intends to continue increasing production by 400,000 barrels a month. Crude oil has tried to extend recent gains, although one can see that the thin does not support market bulls.
Gold prices rose during today's session, which may be related to the muted US dollar. Other precious metals also moved. Bitcoin and other cryptocurrencies have tried to erase recent losses, but from the weekly perspective, most of the digital assets remain in red.
WTI crude (OIL.WTI) prices rose slightly during today’s session, however buyers struggle to break above local resistance at $76.60 which is marked with previous price reactions and 38.2% Fibonacci retrenchment of the last upward wave. Should a break higher occur, then the upward move may accelerate towards $79.90. On the other hand, if sellers will regain control, then support at $71.15 may be at risk. Source: xStation5
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