Wall Street ended lower on Monday driven by a broad decline in technology firms and rising inflationary pressures around the world. The Nasdaq 100 Index plunged more than 2.5% on Monday.
Chinese and European shares traded lower on Tuesday following a selloff on Wall Street overnight. While China released the April inflation data, the data showed the annual inflation rate rose to 0.9% in April 2021 from 0.4%.
On the earnings front, Palantir (NYSE: PLTR) reporting earnings today before the bell while Electronic Arts (NASDAQ: EA), and Fubo TV (NYSE: FUBO) is scheduled to report results after the market close.
Crude oil prices remain under pressure after a temporary closure of the largest US fuel pipeline due to a cyberattack.
In the currency market, the EUR/USD recovered from the early session losses supported by stronger-than-expected German economic data. Meanwhile, the GBP/USD slightly retreat from the Monday highs.
The Safe haven metal trading unchanged on Tuesday as investors await U.S. inflation data for April, which will come out tomorrow.
On the data front, Germany’s ZEW Economic Sentiment Indicator came at 84.4 in May 2021, higher than the market expectations of 72.0.
Moving ahead to the North American session, the investors should closely monitor the Bank of England Andrew Bailey's speech and US JOLTs job openings numbers.
Worldwide, more than 158 million people have been confirmed infected and more than 3.2 million have died. The United States has confirmed over 32.7 million cases and has had more than 580,000 deaths from COVID-19, the highest totals in the world.
EUR/USD: The currency pair trading steady above 1.2160. Overall, the momentum remains bullish throughout the European session.
The important levels to watch for today: Support-1.2130 and 1.2110 Resistance- 1.2180 and 1.2200.
GOLD: The yellow metal trading above $1840 area during the European session, if the bullish momentum continues the next upside levels to watch the $1850 and $1856 zone. On the flip side, the immediate support at $1832/30.
The important levels to watch for today: Support- 1830 and 1825 Resistance- 1845 and 1850.
Quote of the day: “Inflation is not only unnecessary for economic growth. As long as it exists it is the enemy of economic growth” - Henry Hazlitt.
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