- European stocks finished session higher
- Wall Street rebounds sharply
- Commodities under pressure
European indices finished today's session higher, rebounding from a sharp sell-off in the prior session as investors believe that the new sanctions imposed by the west could have a limited impact on the global economy. Despite an upbeat session, major European indices took a hit on a weekly basis, with DAX losing 3.1%. Meanwhile, war in Ukraine escalates. Russian troops entered Ukrainian capital Kiev and continued their attack on other fronts, however, they faced fierce resistance from the Ukrainian army, which managed to inflict significant losses on its attackers. The Kremlin said it was open for negotiations in Minsk and Ukraine demanded it take place in Warsaw. European Union leaders are discussing imposing sanctions on any European assets held by Putin and Foreign Minister Sergey Lavrov, two sources told CNBC. UK PM Johnson after the NATO meeting urged leaders to take immediate action against SWIFT to inflict maximum pain on Putin and his regime.
Wall Street also bounced back sharply as markets weighed prospects of interest rate hikes to tame inflation and developments in the Russia-Ukraine war. Many investors believe that the likelihood for a 0.50% hike in March is decreasing due to geopolitical risks stemming from Eastern Europe despite persistent inflationary pressures. The core PCE index, the Federal Reserve’s favorite inflation gauge, increased to 5.2% yoy, above market expectations of 5.1%.
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Create account Try a demo Download mobile app Download mobile appDownbeat moods prevail today in commodity markets amid weaker dollar and higher treasury yields. US 10-year Treasury returned to 2.00%, while gold pulled back below the $1900 level. Silver also lost ground and is approaching support at $24.00. WTI erased early gains and fell below $91.60 level as a new set of sanctions will have a negligible impact on the energy sector. Major cryptocurrencies also moved higher today. Bitcoin rose at one point 4.8%% and tested $39 500 level and altcoins followed main cryptocurrency.
Gold pulled back below the $1900 level as rising geopolitical tensions lower the odds that FED will introduce a 50 bp rate hike in March. If current sentiment prevails, downward move may accelerate towards support at $1862.00, which is marked with 38.2% Fibonacci retracement of the last upward wave. Source: xStation5
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