Global stocks remain under pressure driven by surging bond yields and rising inflation pressures. The benchmark US Treasury Yield, on a 10-year note, reached its highest level in two years. On the other hand, the investors are also nervous about the earlier-than-expected interest rate increase in the United States. The US Federal Reserve is broadly expected to increase the rates three times this year.
Wall Street closed sharply lower on Tuesday; technology companies led a broad slide in stocks Tuesday on Wall Street. The sell-off is also driven by weaker-than-expected earnings results and economic data.
On the earnings front, Bank of America, Morgan Stanley, and United Airlines are amongst those reporting the last quarter financial results today.
Crude oil futures extend the gains on Wednesday. The recent bullish sentiment was boosted by geopolitical tensions, an attack on an Abu Dhabi oil facility by Iran-backed Houthi militants from Yemen.
In the currency market, the Euro ignored stronger-than-expected consumer sentiment data from Germany and Eurozone. The currency pair fell to a fresh weekly low of 1.1315 on Tuesday against the US dollar. The US dollar holding the previous session gains. At the time of writing, the king dollar trades above 95.60.
The safe-haven metal retreats back to below $1812 on Wednesday as Treasury yields continued to push higher after they surged to their highest levels in roughly two years Tuesday.
On the data front, the UK released the latest inflation figures. The annual inflation rate in the UK increased to 5.4% in December from 5.1% in November and above market forecasts of 5.2%. It is the highest reading since March 1992.
Moving ahead today, the important events to watch:
US – Building permits: GMT – 13.30
Canada – CPI: GMT – 13.30
Worldwide, more than 320 million people have been confirmed infected and more than 5.54 million have died. The United States has confirmed over 63 million cases and has had more than 850,000 deaths from COVID-19, the highest totals in the world.
Technical Outlook and Review
EURUSD: The currency pair continuously traded weaker against the dollar on Wednesday. For today, the key support area to watch is 1.1300 then 1.1280.
The important levels to watch for today: Support- 1.1300 and 1.1280 Resistance- 1.1340 and 1.1380.
GOLD: For today, if the metal break above $1822 will open the doors to $1826 and $1832. On the flip side, if the price break below the $1812 level the next support to watch is $1806 and $1800.
The important levels to watch for today: Support- 1806 and 1800 Resistance- 1822 and 1826.
Quote of the day - “If you can learn to create a state of mind that is not affected by the market’s behaviour, the struggle will cease to exist.” – Mark Douglas.
Read more- https://gulfbrokers.com/en/daily-market-report-435