Market news by Skilling from April 30, 2024, 12:14 pm
At the beginning of May, a month that marks the beginning of a statistically less favourable period for the Stock Market, today's macro data puts to the test the symptoms of reactivation of the European economy. The first relevant figures of the day, those of German retail sales, have exceeded expectations by growing 1.8% in March, compared to the 1.1% expected by analysts. More anticipated are the GDP and CPI data for the eurozone, which will be released two hours after the opening of the European markets, at 11 a.m.
If the focus of European investors in today's session is directed towards macro data and results, on Wall Street their eyes are focused on results and monetary news, on the occasion of the first of the two days of the Federal Reserve meeting. It will not be until tomorrow when the Fed confirms once again that it leaves interest rates unchanged. In any case, attention will focus on the expected delay in the start of the rate cuts. The market already sees a first cut in September as more likely than in July.
European equities are overwhelmed by the avalanche of results that includes today, the last of the month of April. The uneven reception of the accounts cools investor spirits, and stalls the rise of the main European stock indices. The German Dax strives to save 18,000 points, while the pan-European Stoxx 600 postpones its attempt to reach 510 points.
The London Stock Exchange is counting on the bullish momentum of HSBC. The bank received its results on the rise in a day in which the retirement of its CEO was also announced. Business accounts serve as incentives for quotes such as those of Vonovia, Fortum, Thales. From the other hand they activate sales in the shares of automobile companies such as Volkswagen, Mercedes Banz and Stellantis, as well as in Carlsberg, Arcadis and Air France.
The first of the two days of the Fed meeting keeps the interest rates on US debt at the highest level since October, given the prospect of a delay until after the summer at the start of rate cuts in the US. The required return on its ten-year bond exceeds the 4.60% threshold. In Europe, the interest rate on the German bond is around 2.55%, while the Spanish bond is trading around 3.30%.
The messages that the Fed releases tomorrow could alter the threat of balance that the euro-dollar exchange once again registers at the threshold of $1.07. The last few days have also activated the rebound in the price of the British pound, until it recovered 1.25 dollars.
The barrel of Brent repeats at 88 dollars, thus putting a stop to the cuts of previous sessions, without losing sight of the possible ceasefire in Israel. The price of a West Texas barrel, the benchmark in the US, is close to $83.
The changes are also small in the prices of other dollar-denominated assets such as gold and bitcoin. The precious metal retreats slightly towards the level of $2,330 per ounce, while in the crypto market, bitcoin awaits new stimuli on the verge of $63,000.
Gold Price Under Technical Pressure, All Eyes on Fed Rate Decision and NFPs
Gold prices fell on Monday, but the decline was modest, with many traders on the sidelines and avoiding making large directional bets ahead of high-profile events later in the week, such as the FOMC monetary policy announcement and the release of U.S. employment data. Against this backdrop, volatility could be limited at least until Wednesday afternoon, when the U.S. central bank's decision/guidance is expected.
Focusing on price action analysis, trendline support at $2,320 could bring stability to the market and prevent the recent pullback from gaining momentum. However, a breach of this technical indicator could encourage the bears to launch an attack on $2,295.
The cause of Monday's bearish reversal remains unclear. Intervention by the Japanese government to stem the yen’s bleeding and curb speculation is a possibility. This uncertainty, coupled with the fear of being caught off guard by further intervention, may keep USD bulls at bay for the time being. With buyers on the sidelines and upward pressure fading, USD/JPY could see a slight pullback in the coming days.
In the event of USD/JPY continuing in a downward trajectory in the near term, support is seen at 154.65, followed by 153.20. On further weakness, all eyes will be on 152.00 mark, located slightly above the 50-day simple moving average. Further down, channel support emerges at 150.90. On the flip side, if bulls regain control and spark a decisive breach of 157.00, a retest of the 160.00 level could be in the cards.
Disclaimer: Past performance does not guarantee or predict future performance. This article is offered for general information purposes only and does not constitute investment advice.
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Release date: January 3, 2009
Description: Bitcoin is the world's most well-known cryptocurrency; easy to transact at a low cost & often seen as a digital store of value.
Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.
›› Find more crypto market news here
At the beginning of May, a month that marks the beginning of a statistically less favourable period for the Stock Market, today's macro data puts to the test the symptoms of reactivation of the European economy. The first relevant figures of the day, those of German retail sales, have exceeded expectations by growing 1.8% in March, compared to the 1.1% expected by analysts. More anticipated are the GDP and CPI data for the eurozone, which will be released two hours after the opening of the European markets, at 11 a.m.
If the focus of European investors in today's session is directed towards macro data and results, on Wall Street their eyes are focused on results and monetary news, on the occasion of the first of the two days of the Federal Reserve meeting. It will not be until tomorrow when the Fed confirms once again that it leaves interest rates unchanged. In any case, attention will focus on the expected delay in the start of the rate cuts. The market already sees a first cut in September as more likely than in July.
European stock market
European equities are overwhelmed by the avalanche of results that includes today, the last of the month of April. The uneven reception of the accounts cools investor spirits, and stalls the rise of the main European stock indices. The German Dax strives to save 18,000 points, while the pan-European Stoxx 600 postpones its attempt to reach 510 points.
The London Stock Exchange is counting on the bullish momentum of HSBC. The bank received its results on the rise in a day in which the retirement of its CEO was also announced. Business accounts serve as incentives for quotes such as those of Vonovia, Fortum, Thales. From the other hand they activate sales in the shares of automobile companies such as Volkswagen, Mercedes Banz and Stellantis, as well as in Carlsberg, Arcadis and Air France.
Debt, euro, oil, gold and bitcoin
The first of the two days of the Fed meeting keeps the interest rates on US debt at the highest level since October, given the prospect of a delay until after the summer at the start of rate cuts in the US. The required return on its ten-year bond exceeds the 4.60% threshold. In Europe, the interest rate on the German bond is around 2.55%, while the Spanish bond is trading around 3.30%.
The messages that the Fed releases tomorrow could alter the threat of balance that the euro-dollar exchange once again registers at the threshold of $1.07. The last few days have also activated the rebound in the price of the British pound, until it recovered 1.25 dollars.
The barrel of Brent repeats at 88 dollars, thus putting a stop to the cuts of previous sessions, without losing sight of the possible ceasefire in Israel. The price of a West Texas barrel, the benchmark in the US, is close to $83.
The changes are also small in the prices of other dollar-denominated assets such as gold and bitcoin. The precious metal retreats slightly towards the level of $2,330 per ounce, while in the crypto market, bitcoin awaits new stimuli on the verge of $63,000.
GOLD PRICE TECHNICAL CHART
Gold Price Under Technical Pressure, All Eyes on Fed Rate Decision and NFPs
Gold prices fell on Monday, but the decline was modest, with many traders on the sidelines and avoiding making large directional bets ahead of high-profile events later in the week, such as the FOMC monetary policy announcement and the release of U.S. employment data. Against this backdrop, volatility could be limited at least until Wednesday afternoon, when the U.S. central bank's decision/guidance is expected.
Focusing on price action analysis, trendline support at $2,320 could bring stability to the market and prevent the recent pullback from gaining momentum. However, a breach of this technical indicator could encourage the bears to launch an attack on $2,295.
The cause of Monday's bearish reversal remains unclear. Intervention by the Japanese government to stem the yen’s bleeding and curb speculation is a possibility. This uncertainty, coupled with the fear of being caught off guard by further intervention, may keep USD bulls at bay for the time being. With buyers on the sidelines and upward pressure fading, USD/JPY could see a slight pullback in the coming days.
In the event of USD/JPY continuing in a downward trajectory in the near term, support is seen at 154.65, followed by 153.20. On further weakness, all eyes will be on 152.00 mark, located slightly above the 50-day simple moving average. Further down, channel support emerges at 150.90. On the flip side, if bulls regain control and spark a decisive breach of 157.00, a retest of the 160.00 level could be in the cards.
Disclaimer: Past performance does not guarantee or predict future performance. This article is offered for general information purposes only and does not constitute investment advice.
›› Read more news and learn more about Skilling here.
Rating: 9.5/10
Supply: 18,925,000 / 21,000,000
Release date: January 3, 2009
Description: Bitcoin is the world's most well-known cryptocurrency; easy to transact at a low cost & often seen as a digital store of value.
More crypto market news
If you are interested in reading other market news you can check out our market news watch that lists the most recent and relevant news from various crypto related companies around the globe.›› Find more crypto market news here
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