Daily summary: Precious metals surge. Tech stocks under pressure

7:18 PM May 17, 2021
  • US stocks fall as tech shares weigh
  • Elon Musk continues to move the crypto markets
  • Gold hits 3-month high

European indices finished today's session in mixed moods as the renewed spread of coronavirus in some Asian countries and disappointing retail sales and factory activity growth figures from China outweighed optimism over the reopening of the British economy. UK eased restrictions further with the ban on international travel being lifted and indoor hospitality resuming. On the corporate front, Ryanair stock rose despite the fact that the company posted a record annual after-tax loss, however said there were signs the recovery had begun; while Bayer stock came under pressure after a US federal appeals court upheld a $25 million judgment and trial verdict finding that the company's Roundup caused a California resident's non-Hodgkin lymphoma. 

Meanwhile in the US, technology stocks are putting pressure on major indexes as investors remain concerned about the rising inflation and potential monetary policy tightening. Apple and Facebook stocks each fell 0.8%, Netflix lost 1% and Google-parent Alphabet lost 0.6%. Meanwhile, the earnings season is coming to an end with Home Depot, Walmart and Macy’s due to report tomorrow. So far, 86% of S&P 500 companies have reported a positive EPS surprise, according to CNBC. 

WTI crude rose more than 1.3 % and is trading around $66.20 a barrel, while Brent is trading 1.0% higher around $69.40 a barrel. Elsewhere gold rose 1.3% to $ 1,866.00 / oz - highest level since February, while silver is trading 2.6% higher, around $ 28.10 / oz amid weaker dollar and slightly lower Treasury yields. Bitcoin fell sharply after Musk suggested Tesla might sell its bitcoin, however he has clarified later in the day that the electric vehicle manufacturer has not sold any of its bitcoin holdings.

Silver- concerns over inflationary pressure helped to lift precious metals prices. Silver price rose sharply during today's session and is approaching major resistance at $28.24 which coincides with the upper limit of the ascending channel. Should a break higher occur, then the next target for bulls lies at $30.07/oz. On the other hand, if sellers manage to regain control, then nearest support lies at the lower limit of the channel. Source: xStation5


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