Daily summary: Bears continue dominating the markets

7:10 PM May 12, 2022
  • European indices resumed downward move and finished today’s session in the red, with DAX closing 0.64% lower, while CAC40 and FTSE100 fell 1.01% and 1.56% respectively led by utilities and energy stocks;
  • US indices also moved south during volatile trading as investors were digesting recent inflation data which may force Fed to act more aggressively. Dow Jones trades 1.5% lower, S&P 500 fell 1.4% and hit a new low for the year, while Nasdaq dropped 1.6%;

  • UK, the economy unexpectedly shrank in March, and preliminary data showed GDP growth fell to 0.8% in Q1, below analyst estimates of a 1% expansion;

  • US producer price inflation eased in April, while the number of jobless claims rose for a second month;

  • Precious metals took a hit, with platinum and palladium being the worst performers, while gold broke below major support zone around $1830 despite the 10-year US Treasury note fell to 2.84%,;

  • Oil price pulled back slightly. Brent crude trades around $106,70 per barrel, while WTI price fell to $105.30 per barrel;

  • JPY and USD are the best performing major currencies while EUR and AUD lag the most;

Today's trading session once again caused a big stir in the cryptocurrency market. The prices of the Terra project managed to break below the 1 cent barrier, which caused many global crypto exchanges to decide to halt trading on instruments based on this coin. European stock indices posted declines today, negating yesterday's rebound. Pessimism also dominated the indices in the US. Nasdaq failed to stay above the major resistance at 12,000 pts. The strengthening dollar weighed on precious metals valuations. The USDCHF pair reached parity for the first time since December 2019. Tomorrow, investors’ attention will focus on the University of Michigan inflation expectations data.
Bitcoin plunged to $25,000 level during Asian session amid concerns regarding Terra and stablecoin Tether. Nevertheless the market stabilized later on and major cryptocurrency returned above key support at $29,000. However, the situation on the market is still tense, therefore traders should brace themselves for increased volatility in the coming days. Source: xStation5

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