Daily summary: US equities fell on labour market weakness

• Europe shares fall for 3rd day in a row
• Disappointing US weekly jobless claims report
• US crude stockpiles fall sharply to the lowest level since March

Europe indices extended recent losses, with Dax down 0.2% and other major indexes falling between 0.7% and 1.4%, due to mixed corporate results and concerns regarding lagging coronavirus vaccination across the EU. Airbus operating profit plunged 75% last year while Orange revenues fell below expectations and Credit  annual profit dropped 22%. Meantime, ECB minutes showed that policymakers remain concerned over the euro's strength.

US indices are trading in red as investors were discouraged by a weak  jobless claims reading. Meanwhile, housing starts fell also disappointed however building permits came in above expectations. The recent jump in bond yields together with inflation expectations raised some concerns regarding potential pullback for stocks in the near future. The fast-growing tech companies that fueled last year's rally are particularly vulnerable to higher interest rates and inflationary pressures. On the corporate front, Apple stock fell another 2.4% and iPhone maker is down 4.6% amid profit-taking. Tesla dropped 2.5%, bringing its week-to-date losses to 4.6%. Walmart shares fell nearly 6% after the company posted disappointing quarterly figures and warned it expects sales to moderate this year. 

Oil is trading slightly lower, with WTI  below $61 a barrel and Brent about $63.65 a barrel. US crude oil inventories fell by 7.258 million barrels last week, compared to analysts’ expectations of a 2.429 million drop. It is a fourth consecutive week of decline due to  production disruptions in Texas which are caused by historic winter storm. Oil producers and refiners remaining shut and the governor ordered a ban on natural gas exports from the state. Elsewhere gold futures fell 0.10% below  $ 1,775.00 /oz, while silver is trading 1.0% lower near $ 27.00 /oz as the dollar strengthened and US Treasury yields remained elevated.

Silver is trading under pressure, however sellers failed to uphold momentum and price bounced off the lower limit of the ascending channel which coincides with major support at $27.00/ oz. However only breaking above the 50 SMA (green line) will invalidate bearish scenario. On the other hand, if daily candlestick closes below the aforementioned $27.00 support, downward move towards the next support area at $26.00 could be triggered. Source: xStation5