Daily summary: Cautious risk appetite returns

• European indices finished today's session higher, erasing some of the recent losses, with Dax jumping 2.76% led by automakers. On the week, the German index shed almost 2%. Next week investors’ attention will focus on the ECB monetary policy decision at which the central bank is expected to deliver its first rate hike in 11 years. 

• Dow Jones is trading nearly 2.0% higher while S&P500 and Nasdaq jumped 1.6% and 1.4% respectively as better than expected University of Michigan consumer sentiment reading overshadowed stronger than expected retail sales figures. 

• US retail sales rose 1% MoM in June, beating forecasts of a 0.8% gain, and recovering from a downwardly revised 0.1% drop in May. Figures showed consumer spending remains robust but also reflects a general increase in prices for goods and services, therefore FED will mostly stick to its tightening plans.

• On the earnings front, BlackRock (BLK.US) and Wells Fargo (WFC.US) posted disappointing quarterly results, while Citigroup (C.US) surprised on the upside.

• WTI oil tested $95.00 level, while Brent jumped above $101.00 as Saudi Arabia is not expected to unilaterally announce any oil production increase during the meeting with President Biden. Additional production in most OPEC member countries is reaching maximum capacity. 

• Copper prices fell briefly below $7,000 for the first time since 2020, however later in the session buyers managed to erase most losses.

• Mixed moods prevail on the precious metals market. Gold again tested $1700 - level not seen since August 2021, as greenback continues to trade near 20-year highs and Treasury yields remain elevated. Meanwhile while silver rose over 1.5% and is approaching resistance at $18.70 

• Major cryptocurrencies strengthened during today's session as risk-on sentiment returned. Bitcoin tested resistance at $21,000 and Ethereum broke above $1200 level.

GOLD - sellers again failed to break below psychological support at $1700 which is marked with lower limit of the 1:1 structure. As long as price sits above another upward impulse may be launched. On the other hand, should a break lower occur, the next target for bears lies at $1670, where lows from March 2021 are located. Source: xStation5