- European indices rose for a third straight session on Tuesday, with DAX closing 1.59% higher, while CAC40 and FTSE100 added 1.30% and 0.72% respectively;
- Upbeat moods prevail on Wall Street as well. The Dow Jones trades 1.0% higher, while the S&P 500 and Nasdaq advanced 1.66% and 2.2%, respectively;
- Retail sales in the US increased 0.9% MoM in April, following an upwardly revised 1.4% jump in March and in line with analysts' estimates;
- US industrial production increased 1.1% from a month earlier in April, marking the fourth consecutive month of gains which exceed 0.8%;
- Fed's Kashkari said that central bank will get rates to at least neutral by end of year;
- Walmart stock tumbled over 10% after the retail giant as higher prices negatively affected its quarterly profits;
- Mixed moods prevail on the precious metals market. Gold erased early gains and is trading slightly below the flat line around $1820, while silver rose 0.70% and trades around $21.70;
- The Euro jumped above $1.05 following hawkish comments from ECB Knot and Villeroy, while the dollar index touched its lowest level in over a week at 103.2;
- GBP and EUR are the best performing major currencies while JPY and USD lag the most;
- Brent and WTI prices erased early gains and are trading near parity around $113.80 per barrel as US gasoline prices surged to record highs on rising demand coupled with restrained refining capacity;
- Wheat increased to a 14-year high of $1274 per bushel;
- Cryptocurrencies have been rather calm during today’s session. Bitcoin continues to trade around $30,000 while Ethereum managed to stay above $2000 level;
Market sentiment improved during today's session. The US retail sales report indicated the strength of American consumers, which further pushed the indices to the upside. On the other hand, the pace of growth of retail sales is slowing down. If this trend continues, then it may have a negative affect on the US economy which is based on consumption. The upbeat mood was also supported by an announcement from China which intends to provide support to internet companies. When it comes to the Forex market, the EUR, GBP, SEK and NOK outperformed other major currencies. Oil prices fell slightly following the news that the U.S. government is willing to allow Chevron Corp. to negotiate an oil production license with a Venezuelan producer. The Fed chair Powell will deliver a speech at 7 p.m. BST today which may trigger additional volatility on the markets
US2000 jumped over 3.0% during today's session as investors digested a slew of earnings results from major US retailers and retail sales data. If current sentiment prevails, upward move may accelerate towards local resistance at 1879 pts which is marked with 23.6% Fibonacci retracement of the last downward wave and upper limit of the 1:1 structure. On the other hand, should sellers regain control, support at $1700 may be at risk. Source: xStation5
