- European stocks finished higher
- US 10-year Treasury rose to 2.70%, highest since November 2019
- Mixed moods on Wall Street
European indices finished the final session of the week in upbeat moods snapping a 3-day losing streak. The main benchmarks today gained over 1.3%, and energy, finance and health care stocks were among best performers. Nevertheless, the market sentiment is still strongly influenced by the uncertainty caused by the conflict in Ukraine, ongoing inflation and hawkish policy of several central banks. Today, the European Union announced the creation of crisis tools to counteract rising government bond yields, and investors are also closely watching the presidential election in France on Sunday. Markets fear that La Pen's potential win may disrupt the internal structure of the European Union and undermine NATO's stance regarding Russia.
In the US the moods are not so optimistic. Major Wall Street indices managed to erase early losses nevertheless are still heading towards weekly decline amid growing worries over economic growth on the back of runaway inflation and more hawkish FED. High-growth stocks took the biggest hit as the prospect of higher interest rates threatens to undermine the valuations of tech companies in particular. Also rising tensions between the West and Russia also weigh on market sentiment. The US and the European Union have introduced new sanctions against Putin’s regime, including an embargo on Russian coal imports.
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Open account Try demo Download mobile app Download mobile appMixed moods prevail today in commodity markets amid stronger dollar and surging treasury yields. US 10-year Treasury yield rose to 2.70% the highest level since October 2019. Despite this gold rose above $1940 level and silver jumped to $24.70. Oil prices are trading slightly below the flat line, however natural gas reached its highest level since November 2008 due to colder weather in the US and additional sanctions imposed on Russia. Agricultural commodities also moved higher.
Silver price managed to stay above local support at $ 24.67 which coincides with 38.2% Fibonacci retracement of the downward wave launched in August 2020. Nevertheless buyers need to break above the upper limit of the wedge formation in order to fully resume upward move. Source: xStation5
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