Daily summary: Tech stocks sink. Oil surges despite release of strategic reserves

• European equities finished in red, DE30 at 3-week low
• US tech stocks under pressure
• US 10 Year Treasury yields jumped above 1.65%
• Washington will release crude from strategic reserves
• Turkish lira plunged to new historic low

European indices finished today's session mostly lower, with DAX 30 falling 0.9%, while CAC 40 and FTSE MIB dropped 0.7% and 1.6%, respectively as prospects of additional lockdowns and restrictions across Europe weigh on sentiment. Additionally the market now sees a 100% chance of an ECB rate hike in December 2022. Travel companies took the biggest hit as the US issued an advisory against movement to Germany and Denmark due to the rising number of new COVID-19 infections. Turkish lira tumbled over 15% following President Erdogan comments regarding monetary policy. On the economic data front, the Eurozone's Markit PMI data beat market expectations.

Mixed sentiment prevails on Wall Street where the S&P and the Nasdaq fell sharply as rising bond yields put pressure on tech stocks. Meanwhile, the Dow Jones is flat thanks to good performance of financial and energy companies. On the data front, preliminary Markit PMIs were expected to show improvements after mixed October reports. However, the manufacturing sector rebounded slightly from 58.4 to 59.1, while services weakened from 58.7 to 57.0. Traders now await more economic releases this week including the latest FOMC minutes and PCE, the Fed-preferred measure of inflation.

WTI crude price reversed early losses and jumped over 3.0% higher while Brent crude futures surges more than 3.30% despite the fact that White House officially announced the release of Strategic Petroleum Reserves (SPR). The United States will release a total of 50 million barrels of oil from its strategic reserves - slightly more than expected. Meanwhile bearish moods prevail on the precious metals market. Gold price fell more than 1.20% below $1,790 an ounce and silver plunged over 3.50% as Federal Reserve chairman Jerome Powell’s reappointment signals a continuation to the current withdrawal of extraordinary stimulus and raised expectations regarding interest rate increase. The downward movement on the cryptocurrency market lost its momentum during today's session. Major coins managed to erase early losses and are trading slightly higher. Bitcoin bounced off strong support at $55,000 and is currently testing $ 57,500 level, while Ethereum jumped 5% and is approaching $ 4,350 level.

When looking at the OIL chart on the D1 interval one can notice that the price bounced off the key horizontal support zone at $ 77.10, which also coincides with the EMA100. If buyers will manage to keep the price above $80.00 level then this may be a sign that the downward correction is coming to an end. Source: xStation5