- European shares close at new records
- Dow extends record high, Nasdaq under pressure
- OPEC+ sticks to planned 400K bpd output increase
European indices surged to new all-time highs at the end of today's session as investors asses the economic impact of Omicron may be limited. Several countries avoided new restrictions, following reports of fewer-than-expected hospitalizations against a backdrop of record rises in new cases. Travel automotive, banking and energy industries were among the best performers. On the other hand, weak Nasdaq put some pressure on IT companies from the Old Continent. German DAX climbed above the 16,100 mark to an over six-week high and FTSE 100 hit a new pandemic high.
Mixed moods prevail on Wall Street. Dow Jones and S&P500 launched today's session sharply higher, extending record highs, however moods worsened after publication of disappointing ISM Manufacturing PMI reading. Also rising expectations that the Federal Reserve will tighten faster the monetary policy to fight surging inflation caused bond yields to move north, putting pressure on tech stocks which were lagging since the beginning of today's trade. As a results Nasdaq fell nearly 2% while the 10-year Treasury yields strengthened to a 6-week high of 1.67%.
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Create account Try a demo Download mobile app Download mobile appAfter yesterday's declines, upbeat sentiment returned to commodity market. Precious metals are recovering after yesterday's sell-off caused by a dynamic rise in US government bond yields. The gold recovered some ground and returned above $ 1,800 an ounce amid weaker dollar. Crude oil prices also moved higher after OPEC + decided to maintain the current production plans (400,000 barrels per day). Oil traders should pay close attention to today's API Crude Oil Stocks report, which will be released at 9:40 p.m. GMT.
Cryptocurrency market was rather muted. Major coins moved higher during European session, however sellers took the initiative after the US open and most early gains were erased. Bitcoin failed to break above $47 500 and price dropped below $46 000, while Ethereum pulled back from $3900 handle and is currently testing $3800 level.
Gold took a hit yesterday, however buyers failed to break below the psychological support at $1800 which is additionally strengthened by upward trendline, 50 SMA (green line) and 200 SMA (red line). Today prices rebounded and local resistance at $1827.50 may be at risk. This level coincides with 38.2% Fibonacci retracement of the upward wave launched in March 2021. On the other hand, if sellers will manage to regain control and break below the aforementioned support zone, then another downward move towards $1770 may be launched. Source: xStation5
