- Dow sets record high on Powell comments
- The 10-year Treasury yield hit a fresh 1-year high of 1.42%
- Oil crude stocks unexpectedly rise
European indices finished higher on Wednesday after latest data showed the German economy expanded 0.3% in the final quarter of 2020, well above analysts' expectations of 0.1% growth. On the corporate front, Lloyds posted better than expected quarterly earnings and increased a dividend payout. Stocks from the travel sector were among the best performers as countries are starting to lift COVID-19 travel restrictions. DAX 30 rose almost 1%, CAC 40 gained 0.3% and FTSE100 finished 0.5% higher.
US indices erased early losses and Dow Jones reached new all-time high after Fed Chair Powell reiterated a commitment to the accommodative policy stance during his second day of semiannual testimony before Congress. Powell continued to downplay the threat of inflation, saying it could take three years to reach the central bank’s target consistently which helped growth companies. The tech-heavy Nasdaq Composite erased a 1.3% loss and jumped 0.7% . Technology stocks sold off earlier as the 10-year Treasury yield jumped to 1.42%, level not seen since February 2020. Tesla stock rose 4.6% after Ark Invest’s Cathie Wood bought more than $120 million worth of electric car maker's shares for the flagship Ark Innovation ETF, according to the firm’s website.
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Open account Try demo Download mobile app Download mobile appWTI crude rose more than 2.0% and is trading slightly above $63.00 a barrel, while Brent jumped nearly 2.40% and is trading slightly below $67.00 a barrel as both EIA and API reports showed a surprise increase in US inventory stocks while stockpiles at a key European storage hub reached their lowest level since September according to Genscape. Elsewhere gold futures partially erased early losses and are trading below $ 1,800.00 / oz, while silver is trading 0.69 % higher near $ 27.80 / oz supported by a weaker dollar and a dovish comments from Powell.
US500 broke above the upper limit of the descending channel during Powell’s testimony. If the current sentiment prevails, upward move could be extended to the 3960 pts handle where all-time high is located. Source: xStation5
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