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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Daily summary: US stocks rally after Fed decision

20:46 15 June 2022
  • European indices snapped a six-day selloff to end Wednesday’s session higher, with DAX 40 adding 1.36%, mainly thanks to solid performance of the financial and technology sectors;
  • ECB said it would skew reinvestments of maturing debt while announcing the speed-up of a new tool kit to rein on soaring borrowing costs;
  • US stocks extend gains on Wednesday, with the Dow rising over 2.0%, the S&P 500 climbing 2.6% and the Nasdaq 3.7%;
  • The yield on the 10-year US Treasury note fell below the 3.4% level after the Federal Reserve hiked its funds rate by 75bps, in line with analysts’ estimates;
  • Chairman Powell said a 75bps rate hike is not a common occasion and left the magnitude of the next rate increase open; 
  • US retail sales unexpectedly fell in May, indicating that American consumers are already cutting back on spending; 
  • AUD and GBP are the best performing major currencies while USD and EUR lag the most;
  • EIA data showed an unexpected jump in US crude production that hit its highest level since April 2020;
  • Oil prices continue to move south. Brent and WTI fell more than 1%, while NATGAS is trying to recover from yesterday's sell-off and is gaining over 3%;
  • Precious metals are performing quite well, gold adds more than 1.5%, and silver gains over 3.5%;
  • Major cryptocurrencies inches slightly higher on Wednesday. Nevertheless, today's gains are not very impressive given the scale of recent sell-off;

After today's Fed decision, we could observe a positive reaction of major Wall Street indices. US500 defended the support at 3702.5 pts, which coincides with 127.2% external Fibonacci retracement and next buyers managed to above the resistance at 3808 pts. Source: xStation5

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