Stocks recover from Italy jitters; Precious metal rally

Summary:

Stocks shake of soft start to recover
Thyssenkrupp may be removed from the DAX index
Precious metals make concerted move higher
Another quiet day for crypto as Bill Clinton offers his opinion
Top 3 charts this week: US100, GOLD and USDBRL

There was some notable selling across European stock markets this morning as fears surrounding Italy’s role within the EU continue to rise after last week’s controversial budget announcement. Tensions were ramped up further after comments by a senior official from the ruling party said during a radio interview that the country’s problems would be resolved if it scrapped the Euro and returned to its own currency. However, the market have recovered throughout the session and the US30 has actually made a new high around the time of the European cash close.

Siemens (SIE.DE) is the worst performing DAX stock today. The company was downgraded at HSBC to “hold” from “buy”. Price target was lowered from €140 to €123, what is still around 12% above yesterday’s closing price. Earlier, Siemens had 20 “buy”, 8 “hold” and 2 “sell” recommendations. Yesterday we wrote about decision of the board of Thyssenkrupp (TKA.DE) to split the company into two separate units. During an interview with Westdeutsche Allgemeine Zeitung company’s CEO, Guide Kerkhoff, said that newly formed companies probably will not meet DAX index criteria and therefore it is probable that Thyssenkrupp will be removed from the benchmark following a split.

There’s been a pretty clear move higher in the precious metal complex today with Gold (+1.3%), Silver (+2.6%) and Platinum (+1.2%) all clearly in the green. The gains are all the more impressive considering that the US dollar is on course for another solid day of gains with the greenback higher against all of its peers barring the BRL and JPY. Let’s now look at each of the aforementioned markets individually and see what the technical situation is here.

For the second day in a row the trade in the crypto space has been fairly muted with no large moves occurring in the 5 markets compared to their lofty standards. Ethereum is the biggest mover and lower by almost 2%, with Dash and Bitcoin both also in the red. Ripple is higher by around 1% while Litecoin is pretty much flat. Let's mention Bill Clinton's speech delivered at Ripple's crypto conference on Monday. Referring to concerns related to technologies like GPS appearing in the past, the former US President Clinton claimed that an old regulatory regime can not be implemented to a new technology. He stated that an intelligent effort should be taken to identify possible downsides. Clinton also encouraged to "end up killing the goose that laid the golden egg" in relation to cryptocurrencies.

For our top 3 charts this week we focus on the US100, Gold and USDBRL. These can be viewed in more detail here.

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