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8:02 PM · 24 January 2022

Daily summary: Global stocks tumble amid Ukraine worries

  • European indices took a hit amid rising geopolitical tensions
  • Wall Street extends sell-off 
  • Bitcoin price rebounds

European indices finished today's trading sharply lower, in what was the worst session since November 26th. All major bourses from the Old Continent fell 3.6% on average as investors remain concerned about growing tensions at the Russia-Ukraine border. After talks between Russia and NATO members failed to lower tension, imminent military activity at the Russia-Ukraine border led the US and the UK to remove embassy staff from Kyiv. At the same time, investors monitor the possible implementation of sanctions imposed on Russia and its repercussions with EU trade, particularly for energy. Meanwhile the latest PMI data showed private sector growth rates in the Eurozone and the UK slowed sharply to 11-month lows. 

US stocks continue to move lower on  Monday as investors are preparing for the Federal Reserve meeting on Wednesday during which the central bank is expected to announce its first rate hike since 2018 on Wednesday. At one point S&P 500 shed 3.9%. The benchmark is down more than 10% from its intraday high. Dow Jones is trading 2.20% lower while  Nasdaq fell more than 4% however managed to partially erase some losses later in the session. Also several big tech companies will post their quarterly earnings this week including IBM, Microsoft, Tesla, and Apple, which may also cause some additional volatility. 

Mixed moods prevail today in commodity markets amid stronger dollar while US 10-year Treasury which fell to 1.71%. Gold is testing $1,840.00 level while silver pulled back to support at $ 23.60. WTI oil fell 2% and tested $82.00 level while Brent plunged at one point 4% and is trading around $85.40.

 Major cryptocurrencies launched today's session in sour moods, however sellers failed to uphold momentum and prices rebounded. Bitcoin jumped above $36 000 level while Ethereum is currently  approaching $2400 level.

Gold prices remain in an uptrend. The $ 1,830 zone successfully held back the sell-off early this week. If current sentiment prevails, the bullish move may accelerate towards the recent high around $1850. Source: xStation5

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