- European indices finished today's session mostly lower, with DAX hitting a fresh two-year low as another set of hawkish comments from central bankers and huge Nord Stream pipeline leaks dampened market sentiment.
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Wall Street turned an initial rally into a selloff on Tuesday. S&P 500 and the Nasdaq fell 0.65% and 0.4%, respectively, while Dow Jones lost 0.70% and reached its lowest level since November 2020 despite climbing more than 300 pts earlier in the session.
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The 2-year Treasury yield pared back its losses and the benchmark 10-year yield jumped to 3.97% after earlier decline, which put pressure on indices.
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Investors also digested a slew of hawkish speeches, especially from Fed Evans and Bullard who believe that more rate hikes are necessary.
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Additionally, a slew of upbeat economic releases supported the Fed's aggressive stance. New orders for US-manufactured capital goods rose more than expected in August, home sales unexpectedly rebounded last month, while the US Conference Board Consumer Confidence index increased more than expected.
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Despite initial weakness the dollar index regained strength and is heading towards a fresh 20-year high of 114.5 reached in the previous session. As a result of greenback appreciation, EURUSD pair fell to a 20-year low of 0.9577, while GBPUSD pair erased early gains and resumed downward move, currently trading around 1.0675 level.
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Currently USD and CHF are the best performing major currencies while EUR and AUD lag the most.
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Oil prices rebounded despite a strong dollar, after Reuters reported that Russia at the next OPEC + meeting on October 5, will propose a production cut of 1 million bpd.
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Strong USD and higher yields continue to put pressure on precious metals. Both gold and silver erased early gains and are trading around the flatline.
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Similar moods prevail on the cryptocurrency market. Early in the session Bitcoin jumped well above the $20000 mark, while Ethereum tested $1400 level, however moods completely reversed in the afternoon. Now Bitcoin is trading below support at $19000 and Ether retreated to $1320.
Despite rebound attempts, prices of the main cryptocurrencies wiped out earlier gains in the second half of the day. Looking at the Bitcoin chart, a shooting star pattern may be forming on the D1 interval. If the sentiment does not change by the end of the session, it could be a trigger to attack the recent lows at $ 18,000. Source: xStation5
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