- European stocks mostly lower
- Upbeat moods on Wall Street
- Cardano price surges
Equity markets in Europe ended today's trading at slightly lower levels due to the uncertainty surrounding the NATO, EU and G7 summit. Telecommunications and Food & Beverage were the best-performing sectors, while Retail, Construction and Materials underperformed. PMIs from France and Germany turned out to be relatively optimistic. The reading in Germany beat analysts' estimates (industrial and services), while in France the industrial reading fell slightly short of expectations. However, the favorable picture may be deceptive as the German reading is described as a record increase in prices, as well as a gigantic shortage of materials and labor gaps.
Major Wall Street indices moved higher on Thursday as investors digested a slew of economic data while watching the war in Ukraine. NATO decided to strengthen its forces in Eastern Europe, increase military aid to Ukraine and tighten sanctions on Russia. Meanwhile there have been signs that Russian forces may have captured the city of Mariupol and many experts fear that this will lead to further escalation of the conflict. Also Russian officials seem to confirm this scenario. Ominously, Maria Zakharova, who is the Director of Russian Information and Press Department of the Ministry of Foreign Affairs said today "The Ukrainian leadership missed its chance for a sovereign state." "They have already missed the main chance for the existence of Ukraine within their own borders, a sovereign Ukraine, an independent Ukraine," she said. Meanwhile US President Biden thinks that Russia should be removed from G20. He also said that it would be Ukraine's judgement whether it cedes territory to Russia. Today’s data showed that jobless claims fell to the lowest level since 1969. New orders for the US manufactured durable goods dropped the most since April 2020, while flash PMI's surprised on the upside. On the corporate front, chip manufacturers such as Nvidia, Intel and AMD are top performers. Uber stock rose over 3.5% after the company announced a deal to list all New York City taxis on its app.
Precious metals and NATGAS led the commodities market today, discounting ongoing uncertainty in the markets and news of cooperation between the U.S. and Europe in relocating LNG supplies to Europe. The U.S. is expected to deliver an additional 15 billion cubic meters of natural gas to Europe by the end of 2022. Gold gained over 1% today and returned above the $1,960 level. Despite hawkish comments from Fed Evans, the dollar erased most of today's gains. Evans, who is seen as a proponent of dovish macro policy, said that a 50 bp hike may be necessary. Major cryptocurrencies rose sharply during today's session. Bitcoin approaches $44,000 level, Ethereum broke above psychological resistance at $3000, while Cardano surges nearly 10% after inclusion in new Grayscale fund.
GOLD witnessed a downward correction recently, however the price failed to break below the major support zone around $1910 and another upward impulse was launched. Currently the price may be heading towards key resistance at $1980.00. Source: xStation5
