- Wall Street starts the new year with gains
- High closing of indices in Europe
- US 10-year bond yields rise to 1.62%
- Precious commodities fall strongly, dollar strengthens against other G10 currencies
- Bitcoin struggles to hold the $46,000 level
Indices on Wall Street are posting moderate gains during the first trading session this year. At the moment, the US2000 (+0.64%) and US100 (+0.82%) indices are the strongest risers. The US500 and US30 indices are trading close to Friday's closing levels. The company that generated the most buzz during today's session was undoubtedly Tesla (TSLA.US), which, despite the prevailing global supply chain problems, posted a much better-than-consensus number of electric cars delivered in Q4 and thus broke the company's previous record. The company's shares are currently up over 11%. This week, special attention should be given to Wednesday's FOMC minutes meeting.
The first session on the Old Continent turned out to be very positive for all major stock exchanges, posting gains of more than 0.5% in most cases. The German DE30 broke through the psychological barrier and rose above the 16,000 point level, rising by more than 0.86%. The Polish W20 also benefited from the good mood on the Old Continent and rose by more than 0.85%. Tomorrow, the Polish market will focus on the Central Bank's decision on interest rates. According to analysts' predictions, the NBP will raise the main reference rate by 50 bps, to 2.25%.
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Open account Try demo Download mobile app Download mobile appOn the bond market, we see today a significant increase in the yield on 10-year treasury bonds (currently at 1.62%), which has caused a surge in the appreciation of the US dollar against other G10 currencies and a significant weakening in gold prices, which have fallen to below USD 1,800 per ounce. Declines are also reaching other precious metals, with silver, platinum and palladium prices falling by respectively: -2.1%, -1.3% and -4.25%.
Percentage change in G10 currencies. Strong strengthening of the dollar at the beginning of 2022. Source: Bloomberg
The cryptocurrency market, on the other hand, starts 2022 in a mixed mood. Last week, Bitcoin was unable to cross the $52,000 barrier and slipped below $47,000. Ethereum has also been hit by problems, and the coin is trading down more than 2% today. The current capitalization of the entire cryptocurrency market is $2.3 trillion.
Looking at the Bitcoin chart, we see a clear weakness in the largest cryptocurrency. The demand side was unable to overcome the resistance set by the 23.6% Fibo retracement, which resulted in a drop below $46,500. The bears are clearly pushing against the support near $45,500, which, if exceeded, could trigger a deepening of the cryptocurrency's declines. Source: xStation 5
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