- Bank stocks retreat on Archegos Capital default
- Traffic in Suez Canal resumes
Most of the European indices finished today's session slightly higher despite the ongoing uncertainties regarding the third wave of the pandemic. Yesterday German Chancellor Angela Merkel urged state officials to put more efforts to curb rising coronavirus infections which weighed on mining, oil, travel and leisure stocks. Meanwhile French government warned that hospitals could be soon overwhelmed due to the rising number of new infections. DAX 30 rose 0.47% and reached an all-time high of 14,818 pts, CAC 40 gained 0.45% and FTSE100 fell 0.07%.
US stocks are swinging between gains and losses amid weakness in bank shares. Nomura and Credit Suisse both warned of substantial losses after the US hedge fund, Archegos Capital Management, defaulted on margin calls and was forced to liquidate more than $20 billion of positions linked to the firm's roiled stocks. This put pressure on some major US media and Chinese tech companies. The yield on the benchmark 10-year Treasury note edged up to a one-week high of 1.69% on Monday, but remained below 14-month highs of 1.75% reached early in the month.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appWTI crude rose 0.6% and is trading slightly below $61.40 a barrel, while Brent is trading 0.25% higher around $64.70 a barrel as the giant container ship blocking the Suez Canal, the Ever Given, has been refloated and is on the move again. Elsewhere gold dropped more than 1.0% to $ 1,713.00 / oz, while silver is trading 1.3 % lower near $ 24.70 / oz amid stronger dollar.
GOLD – on Friday buyers failed to break above the resistance at $1740.00 which coincides with 50 SMA (green line) and lower limit of the descending channel. Today gold fell below important support at $1715.00. If the current sentiment prevails downward move could be extended to the psychological $1700.00 support or even $1681.00 handle where March lows are located. However, if buyers will manage to regain control then upward impulse towards aforementioned 50 SMA could be launched. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
