-
Global stocks pull back
-
Q3 earnings season in the U.S. begins
-
U.S. CPI in line with expectations
Sentiment on global stock markets has deteriorated on Tuesday. Most European indices finished the day lower as risk appetite faltered. DAX lost 0,91% while CAC 40 sank 0.64%. American stocks edge lower as well amid U.S. earning season kickoff. While European market participants remain concerned about rising Covid-19 cases, investors in America will now focus on third-quarter results published by listed companies.
Precious metals markets tend to fall along with equities today. Gold fell back below the $1900 mark. Silver prices plunge as much as 4%. The U.S. dollar strengthens against the euro in the afternoon and EURUSD is getting closer to the 1.1730 level.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appAs far as economic data is concerned, UK’s unemployment rate rose to 4.5% in August (vs exp. 4.3%). German ZEW Economic Sentiment fell from 77.4 pts to 56.1 pts, well below expectations of 72.0 pts. Apart from that, U.S. CPI data matched market expectations. The IMF revised its global GDP forecast higher. The organisation expects that the global economy will contract by 4.4% in 2020 (prior: 4.9%).
Tomorrow Japan and the euro zone will release their industrial production figures for August. American investors will pay attention to Q3 earnings published by Goldman Sachs and Bank of America. Several central bankers are scheduled to speak as well (including ECB’s Lagarde).
Gold prices tend to fall during today’s session. Looking at H4 time frame, price has approached the support level marked by 1:1 structure ($1885). Should sellers mange to break below it, a downward move towards $1875 might occur (marked by sequence of higher highs). Source: xStation5
