Thursday instant market
|Well||Current value||Daily change|
|S & P 500||2,739||-0.09%|
|WTI Crude Oil||52.14||3.65%|
|EUR / USD||1.1374||0.08%|
We are living another tumultuous day in the financial markets, with risk assets trading without clear direction after yesterday's increase in US equities. Fed president Jerome Powell is mainly to blame for the hectic day, even though the looming G20 summit is also causing wild swings in currencies and stocks.
Mr. Powell changed a sentence in his position on the Fed's monetary policies yesterday, saying that interest rates are already close to their "neutral" levels, triggering one of the strongest short-term contractions of the year in US equities . The other main asset classes were not as enthusiastic about the speech, with particularly the US Treasury securities showing a mute reaction.
Dollar index, 4 hour chart analysis
The dollar, on the other hand, lost ground against all its major peers following the startling change in Powell's position, which came after the umpteenth attack by President Trump. The Dollar Index has withdrawn again from the 97 level, and although the uptrend in the reserve currency remains intact, the rest of the year could lead to another correction, especially if the United States and China were approaching a new trade agreement over the weekend.
Nasdaq 100 Futures, 4-hour chart analysis
While global equities are virtually unchanged from Powell's speech, with a slight bearish propensity in Europe and Asia, leading US indices have gained more than 2% a day, and today benchmarks are clinging to much of this.
The Nasdaq 100 was leading upwards yesterday after being relatively weak for weeks, but despite the strong rally, the technology index is still stuck in a downward trend, trading just at the upper limit of the recent short-term consolidation. In December, the odds still favor a bullish move in stocks, and the Nasdaq 100 could reach zone 7200-7250, although we expect the global bearish change to be persistent.
The pound remains weak as the jumps of oil and gold defends the support
EUR / GBP, 4-hour chart analysis
Outside the Dollar, the relative weakness of the pound sterling is the most important trend in the forex markets and, despite the slight shift in risk this week, the British currency is still seeing a collapse due to the uncertainty of the Brexit.
The EUR / GBP has now tested the resistance zone near the 0.8920 level, and although the common European currency has not been the strongest in recent weeks, it is close to overcoming the broader consolidation scheme that will mark a move above zero.
Gold futures, 4-hour chart analysis
Today, commodities are much higher due to the weakness of the Dollar, with in particular the rebound of crude oil and the rebound in gold stocks. The battered oil market saw the purchase of positive Russian comments regarding a possible cut in supply, and after having reached for the first time the value of $ 49 per barrel for over a year, the crucial product it gathered around 5%.
Gold managed to keep the $ 1215 level in the meantime, with the new multi-month marginal lows of US Treasury yields helping the precious metal along with the dollar's decline. Gold is still stuck below the October high, but since it's starting to show signs of stability, the positive fundamentals could eventually lead to an important move in the metal.
Major stock indices
Futures S & P 500, analysis of the 4-hour chart
Dow 30 Futures, analysis of the 4-hour chart
VIX (US volatility index), 4-hour chart analysis
DAX 30 Index CFD, analysis of the 4-hour chart
FTSE 100 Index CFD, analysis of the 4-hour chart
EuroStoxx50 Index CFD, analysis of the 4-hour chart
Nikkei 225 Futures, 4-hour chart analysis
Shanghai Composite Index CFD, 4 hour chart analysis
EEM (Emerging Markets ETF), analysis of the 4-hour chart
EUR / USD, 4 hour chart analysis
USD / JPY, 4 hour chart analysis
GBP / USD, 4 hour chart analysis
AUD / USD, 4 hour chart analysis
WTI Crude Oil, analysis of the 4-hour chart
Copper futures, analysis of the 4-hour chart
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