Daily Summary: Comments from Fed bankers and escalating conflict in the Middle East shape sentiment 📌

Declines on Wall Street slowed somewhat at the end of the mid-week session, but both the US500 and US100 are trading more than 0.70% lower.

Today after the Wall Street session, the results of two important technology companies will be published: Netflix and Tesla. Netflix's earnings are expected to continue to improve in the face of account sharing restriction measures, while Tesla is expected to continue to see its margins shrink after recent car price cuts

The dollar is one of the strongest currencies today, while on the other side of the scale, the Euro and the Polish zloty are recording declines.

EURUSD is falling around the 1.0548 level, where there is key support set by the local lows of February and March this year. 

The dollar is being strengthened today by hawkish comments from Fed members and rising tensions between Israel and Palestine.

Waller of the Fed confirmed that the US economy remains strong. Economic data show a good labor market and a stabilization of the price situation. However, there is no talk of interest rate cuts yet. The banker said that a hike is still on the table as much as possible, however.

Morgan Stanley (MS.US) shares are losing more than 7.0% after the company reported disappointing quarterly results. The bank reported weaker revenues from wealth management and especially investment banking.

U.S. President Joe Biden today visited Tel Aviv, Israel, where he met with the government and the Israeli president. Biden stressed American support and condemned terrorist activities by Hamas militants. Moreover, according to Pentagon reports, Israel is not behind the bombing of the Gaza hospital, which resulted in many deaths.

Biden announced $100 million in aid for both Gaza and the Western border.

Cryptocurrencies are reversing gains in the face of greater risk aversion present in the markets. Bitcoin is trading flat, while Ethereum is gaining more, up +0.50%.

China's GDP came in higher than expected at 4.9% annualized versus 4.5% expected and 6.3% previously. On a quarterly basis, growth was 1.3% vs. 0.9% expected and 0.8% previously. The good data shows that concerns about this economy seemed excessive.

U.S. crude inventories fell by 4.5 million brk for the day, a deeper drop than the API report indicated. Oil rose strongly today, but later capped the gains. Brent scored a 1% increase before 8pm, which was linked to the situation in the Middle East

Gold rose as much as 2% today and surpassed $1,950 per ounce amid the exalted situation in the Middle East