- European equities rose for a second day on Wednesday, with the FTSE 100, CAC40 and the DAX 30 adding 1.13, 0.98% and 1.35%, respectively, supported set of upbeat earnings results from banking sector;
- Germany's inflation rate is likely to hit a new four-decade high of 7.4%, according to preliminary estimates;
- US indices rose sharply as better than expected quarterly results of Meta Platform offset concerns over inflation and slowing economic growth. Also, Twitter, Mastercard, and McDonald’s results beat market expectations. Dow trades 1.65% higher, S&P 500 gains 2.60% while Nasdaq jumped nearly 3.0%;
- On the data front, the US economy shrank 1.4% during Q1, compared with analyst forecasts of a 1.1% expansion, as record trade deficit, and softer inventory growth weighted;
- WTI oil and Brent rose 2.60% and 1.90% respectively amid prospects of potential EU ban on Russian crude imports after Germany reportedly dropped its opposition to such a move;
- Mixed moods prevail on precious metal markets. Gold rose 0.30% and is approaching resistance at $1890 despite stronger dollar and rising treasury yields. Meanwhile silver briefly fell below $23.00 level;
- The yield on the 10-year US Treasury note rose to 2.86%, not far from an over three-year high of 2.98 touched last week, with investors pricing chances of an increasingly hawkish Federal Reserve stance;
- Upbeat moods on global stock markets supports cryptocurrencies. Bitcoin jumped above $40,000 while Ethereum approaches psychological $3000 level;
Thursday's session on European markets brings an improvement in investor sentiment. Global equities were not overly concerned about the disappointing US GDP data, which showed that the American economy shrank -1.4% in Q1. Investors' attention is now focused on the quarterly results of major technology companies, which are in the middle of their earnings release cycle. Amazon and Apple will release their quarterly results today after the market close. In the European Union, uncertainty regarding the import of hydrocarbon products from Russia remains the main topic.
US100 managed to erase early losses and launched an impressive rebound. Index broke above the upper limit of the local 1:1 structure and is currently testing local resistance around 13436 pts. Should break higher occur, the next target for buyers is located around key resistance at 13750 pts which is marked with previous price reactions. On the other hand, if sellers manage to regain control, another downward impulse towards support at 13000 pts may be launched. Source: xStation5
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