After a one day of relief yesterday market bears returned today. While during the Asian trading hours declines on the stock markets were more or less contained the same cannot be said about subsequent European session. Stocks from the Old Continent rushed lower since the beginning of today’s trading and the situation stayed that way until the end of the day.
Beginning of the US trading session did not brought reversal in the investors’ moods. All three major indices from Wall Street trade lower after the first two hours of trading. Nasdaq is the biggest laggard following lacklustre earnings reports submitted by Alphabet and Amazon. It is worth to note that with today’s drop S&P 500 is trading at negative YTD return.
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Open account Try demo Download mobile app Download mobile appOn the FX market we can see stellar performance of the Japanese yen. This should not come as a surprise as this is usually the case when stock markets are falling. The market event of a day - release of the US GDP report - brought a positive development for the equity markets. Namely, the growth figures surpassed expectations while the price growth data failed to beat forecasts. This is a positive mix for the stock market as it shows that economy is still robust while price growth do not point to the need of quick rate hikes. Nevertheless, investors mostly played down this development and continue to sell shares.
Taking a look at the commodity market quotes one can see further gains among precious metals and extended pullback across industrial metals. Energy commodities are trading higher today but natural gas lags. Coffee and cocoa prices rise ahead of the Brazilian elections run-off scheduled this week.
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