- Global indices fell slightly
- Bitcoin pulled back from recent records
- Gas and oil prices under pressure
Equity markets in Europe closed in the red on Thursday with the German Dax consolidating in the zone between 15,400 pts and 15,500 pts, down 0.3%. The stock exchanges in Madrid, Milan and Paris fell between 0.2% and 0.8%. Inflationary pressures, the supply chain problem and the debt of the China Evergrande Group continue to weigh on market sentiment. Evergrande jitters returned as the company is likely to fall into formal default on Friday after the grace period on its dollar bonds expires.The Swiss ABB group fell 6.3% after lowering its full-year sales outlook due to a shortage of engineering components, while the luxury fashion house Hermès reported optimistic quarterly results.
US indices fell slightly after several days of an upward movement, however both the S&P 500 and Dow Jones are trading near their record highs. Tesla delivered its best quarter ever for revenue despite sectoral problems involving shipping and component shortages. As earnings season moves forward on Wall Street, the majority of the companies posted solid results which lifts market sentiment. On the data front, initial jobless claims fell to 290k last week, the lowest level since March 2020 and below analysts' estimates of 300k as employers retain workers due to an acute labor shortage.
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Open account Try demo Download mobile app Download mobile appWhen it comes to the commodity markets, crude oil and natural gas prices came under pressure. The Chinese government has already started to intervene in the coal market aiming to cool the prices. It said it would ensure coal mines operate at full capacity to help ease a power shortage. As of storage, US natural gas futures fell back towards $5.0 per million British thermal units (mmBtu), hovering around the lowest level in a month, after the EIA reported an injection of 92 Bcf natural gas into storage for the week ended October 15th, slightly above forecasts of a 90 Bcf build and compared with the five-year average of 69 Bcf.
The capitalization of the entire cryptocurrency market fell by almost 3% today to $ 2.56 trillion. Bitcoin price dropped over 4.0%, Ethereum lost over 1.0%. Altcoins are doing a bit better, many medium-sized market cap projects are recording slight increases which could indicate that the most popular cryptocurrency is losing its dominance. The Bitcoin price negatively reacted to the news that the BITO ETF is pushing towards position limits in CME bitcoin futures contracts.
AUDUSD – pair bounced off the 200 SMA (red line) as the US dollar is one of the best performing currencies among majors. Currently price is approaching major support at 0.7460 which coincides with 38.2% Fibonacci retracement of the last downward move. Source: xStation5
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