Wednesday Market Snapshot
|Well||Current value||Daily change|
|S & P 500||2,687||0.06%|
|WTI Crude Oil||51.09||-1.92%|
|EUR / USD||1.1276||-0.09%|
Financial markets are mixed with a slight positive bias amid continued business confusion, with investors trying to guess the likelihood of at least one draft agreement between the US and China this weekend on the G20 Summit.
Although European operations remain relatively weak, US equities continue to be very strong following better-than-expected Black Friday sales, bullish seasonality and expectations of a declining rate hike. The rest of the week will probably be the definition of equities and risk assets in general, starting with today's speech by Fed Chairman Jerome Powell.
Futures S & P 500, analysis of the 4-hour chart
The central banker, who was again attacked by President Trump over the Fed's tight monetary policies, had a surprisingly accommodating speech two weeks ago, and investors are eagerly awaiting confirmation of Mr. Powell's flexibility, in view ; tomorrow's PCE price index and Fed minutes of the meeting.
The main US indices are trading close to key resistance levels after the rebound of the last days, but despite their relative strength a short-term trend change is not yet confirmed, although a hedge rally seems likely at the end of the year, above all should the summit of the G20 provide a positive result.
USD / JPY, 4 hour chart analysis
The slight change in risk of the week is putting pressure on the main refuge assets, with the Japanese yen and gold losing ground in the last days. The weakness of the Yen is the most obvious against the Dollar that has drifted higher than all its most important peers. USD / JPY is now close to level 114, approaching the upper limit of a larger upside consolidation model.
The dollar rally, which has not been stopped by the series of US economic releases weaker than expected so far, has brought the broader Dollar index to its recent high of 16 months, and although the Greenback is flat so far, the trend towards The widening hike remains dominant in the reserve currency.
Europe does not participate in the rally while oil remains under pressure
DAX 30 Index CFD, analysis of the 4-hour chart
Even if today the second reading of the US GDP press has come below the forecast, coinciding with the 3.5% originally reported, the main European indices continue to present weaker results than their US counterparts, with the DAX among the weaker benchmarks of the developed world. German consumer confidence slightly worse than expected weighed on sentiment today, although Theresa May showed surprising flexibility when she said she would accept the rewriting of the original project of the Brexit project. While the Great British Pound has gathered on the news, European equities have not shown strength and the common currency has slightly increased.
WTI Crude Oil, analysis of the 4-hour chart
Commodities are experiencing another mixed and hectic session, with oil lowering once again among supply concerns for Saudi Arabia. The Kingdom wants a coordinated effort by the OPEC nations and Russia to stop the bleeding in the market, and the fact that the Saudis are reluctant to reduce the supply alone has pushed the raw material towards the $. 50 per barrel. While this is bad news for the energy sector, the fall in US yields is likely related to the sharp decline in oil prices.
Major stock indices
Nasdaq 100 Futures, 4-hour chart analysis
Dow 30 Futures, analysis of the 4-hour chart
VIX (US volatility index), 4-hour chart analysis
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
GBP / USD, 4 hour chart analysis
EUR / GBP, 4-hour chart analysis
AUD / USD, 4 hour chart analysis
Gold futures, 4-hour chart analysis
Copper futures, analysis of the 4-hour chart
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