Daily summary: European stocks rebound, cryptos tumble after fake press release

• European stocks gain for 1st time in five sessions
• Dow Jones and the S&P 500 attempt to rebound from last week losses
• US inflation expectations at record level
• Fake news of Walmart adopting Litecoin weigh on crypto market

European markets have got off to a positive start to the week, thanks to solid performance of the energy sector, with BP and Shell outperforming, as power prices surge across Europe. Meanwhile concerns regarding slowing global growth, higher inflation and renewed China's regulatory crackdown capped gains. 

Mixed moods prevail on Wall Street where Dow Jones rose 0.58%, S&P500 is trading flat, while Nasdaq fell slightly ahead of some key inflation and consumer spending data which will be released this week. Meanwhile, US consumers' inflation expectations for the year-ahead increased for the 10th straight month to 5.2% in August, a new series high, driven by food, rent, medical care  and gas. Tomorrow’s CPI figures should provide more hints on inflationary pressures. If annual inflation does not decline, then the Fed will find itself in a tough spot as it tries to find arguments to maintain the current policy and delay the introduction of the tapering process.

WTI crude rose nearly 1.0%, while Brent is trading 0.70% higher partially due to supply concerns in the US caused by Hurricane Ida. Meanwhile, OPEC lowered its oil demand forecast by 110k bpd to average 99.70 million bpd in Q4 2021 due to the coronavirus delta variant, but raised its outlook for 2022. 

The US dollar retreated from today’s highs of the day but is nonetheless still fairly well supported ahead of tomorrow’s CPI data, while the worst performers are the low yielders of the Swiss Franc and the euro.

Cryptocurrencies are under selling pressure following fake news regarding Litecoin and Walmart partnership. At one point Bitcoin fell over 4% below $44,000 level and Ethereum dropped more than 6% below $3200.

Natural gas (NATGAS) managed to break above major resistance at 5.00 last week. Today prices have continued to move higher hitting another seven year high. If current sentiment prevails, then the next target for bulls is located at the 6.38 level. Source: xStation5