- European bourses finished deeply in green
- Wall Street rallies for a second day
- US oil inventories fell unexpectedly
European indices rose sharply today, with DAX adding1.57%, CAC40 rose 1.46% and the FTSE100 finished 1.01% higher as signs of easing tensions in Ukraine lifted market sentiment. Automakers were among the best performers. Volkswagen stock jumped over 6% after news of possible listing of its luxury brand Porsche AG. Also, technology sector climbed 2.9% as government bond prices eased and shares of banks edged up 0.8% to the highest since 2018, benefitting from prospects for higher interest rates.
Wall Street indices also moved higher on Wednesday following set of upbeat quarterly results and declining treasury yields. The 10-year U.S. Treasury yield retreated to 1.91% from levels last seen in 2019 ahead of tomorrow highly anticipated US inflation data. During today's session tech-stocks rose sharply, with Meta, Tesla and Microsoft up about 2% each, while Chipmaker AMD rose over 1% after an upgrade from Daiwa Capital Markets. On the data front, mortgage applications in the US dropped 8.1% last week, the biggest decline in almost a year as buyers started to pull back faced with rising mortgage rates.
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Open account Try demo Download mobile app Download mobile appMixed moods prevail today in commodity markets amid weaker dollar. Gold broke above resistance at $1827.50, silver jumped to $23.30. WTI price rose after EIA report, which showed that oil stockpiles fell by 4.756 million barrels, following a 1.046 million drop in the previous period and compared with market forecasts of a 0.369-million-barrel. However buyers failed to uphold momentum and price pulled back later in the session. Meanwhile Brent dropped below $91.50. Major cryptocurrencies swing between gains and losses. Bitcoin is testing $44 000 while Ethereum price remains near $3200 level supported by upbeat comments from Well Fargo which sees potential in digital currencies.
Gold price managed to break above major resistance at $1827.50 during today’s session which coincides with 38.2% Fibonacci retracement of the upward wave launched in March 2021. If current sentiment prevails, upward move may accelerate towards resistance at $1860.25 marked with 23.6% retracement. Source: xStation5
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