Daily summary: Gloomy start to the week

• European indices finished today's session deeply in the red, with both Germany's DAX and CAC40 shedding more than 2.4% dragged down by travel and leisure stocks;

• The FTSE 100 closed about 1.53% down after UK's April GDP unexpectedly fell over March and industrial output also showed a surprise decline on a monthly basis;

• Downbeat moods prevail also on Wall Street, where Dow Jones decreased to a 16-month low, the S&P 500 fell 3,20%, and the Nasdaq plunged over 4% as investors expect more hawkish Fed'

• The short-term 2-year US Treasury yield traded above its 10-year counterpart at one point in the session for the first time since April, highlighting recession fears. Currently 10-year treasury yield stands as 3.34%

• US consumer inflation expectations for the year ahead rose to 6.6% in May of 2022 from 6.3% in April, matching a record hit in March. 

• Despite negative sentiment gold did not act as a safe harbor today and fell more than 2% to below $1,830 an ounce, while silver briefly dropped below $21.00 amid stronger dollar;

• WTI crude futures erased early losses and tested $122.30 level, while Brent crude futures traded close to $123.70 per barrel;

• USD and JPY are the best performing major currencies while NZD and AUD lag the most;

• Cryptocurrencies fell sharply on Monday. Bitcoin broke below major support at $29,000 and tested $23,000 level, while Ethereum trades around $1200;

• Crypto meltdown gathered pace after a major cryptocurrency lender Celsius announced it would pause withdrawals. Microstrategy (MSTR.US) shares slumped more than 22% as some analysts expect a margin call will force the company to sell some of its holdings.

After Friday's sell-off some investors hoped for an upbeat start to the week, but the supply did not give the bulls any chances. The week started with a huge sell-off, and from a broader perspective, the first half of 2022 looks really terrible for the entire stock market and even worse for cryptos. This week’s main event will be the FOMC decision on Wednesday. Investors are keen to hear about the central bank's view on the current economic situation and further interest rates path. The bulls hope that Jerome Powell will speak in a dovish manner given the condition of the stock market, but recession fears and record inflation may force the Fed to take a more aggressive approach.

GBPUSD pair fell over 1.0% today and is currently testing major support at 1,2150 where lows from May 2022 are located. Should a break lower occur, the next target for bears is located at psychological 1.20 level. However if buyers manage to halt declines, then another upward impulse towards local resistance at 1.2530 may be launched. Source: xStation5