- European equities under pressure, DAX hit 5-month low
- Senate GOP leader McConnell may offer short-term debt ceiling extension
- US crude inventories rose unexpectedly
- President Putin vows to raise gas exports as prices hit record highs
- Bitcoin price broke above major resistance at $53,000
European indices finished today's session sharply lower with DAX down 1.6% to 14,959, the lowest since May 4th as soaring prices of energy commodities and weak macroeconomic data intensified concerns inflation will dent economic growth. Factory orders in Germany fell 7.7% in August, while analysts' expected a decline of only 2.1%. Meanwhile, the IHS Markit Germany Construction PMI increased to 47.1 in September from 44.6 in August, still pointing to a 19th straight month of falling construction activity. Germany's 10-year government bond yield, the benchmark of the bloc, jumped 4 bps and reached its highest since the end of June.
US indices are trading slightly lower, but managed to erase most of the early losses, as Treasury yields remain elevated amid concerns over high inflation and an early Fed tapering. However stocks moved off session lows after a report said that Senate Minority Leader Mitch McConnell told a closed meeting of Republicans that he would offer a short-term debt ceiling extension later Wednesday. On the data front, the ADP report showed the private sector added the most jobs since July and Friday's NFP reading is expected to show the labor market recovery remains strong, which may fuel concerns of a sooner-than-expected easing of monetary stimulus in the face of growing worries regarding higher inflation.
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Open account Try demo Download mobile app Download mobile appWTI oil erased early gains and is trading around $77.60 a barrel, while Brent is trading 1.5% lower, slightly above $81.20 due to higher crude inventories and a stronger greenback. EIA crude stockpiles increased by 2346k barrels last week, which is a second straight period of increase compared to market forecasts of a 418k barrel decline. Natural gas prices fluctuated widely on Wednesday after Vladimir Putin said Russia was prepared to stabilize soaring global energy prices and hinted that state-backed monopoly pipeline exporter, Gazprom, may increase exports via Ukraine to help Europe.
Upbeat models dominate the cryptocurrency market. Bitcoin price surged more than 8% during today's session reaching the highest level since mid-May, while Ethereum rose over 7%. Bitcoin price jumped more than 30% in the past seven days, amidst rising institutional demand, stagflation fears and after recent comments from SEC Chair Gary Gensler, which said the US would not follow China’s lead in banning cryptocurrencies.
Bitcoin has continued its run to the upside during today’s session. Price of the most popular cryptocurrency broke above the resistance at $53,000 and downward trendline. If current sentiment prevails, then the next target for buyers is located around $56,860 level which is marked with 78.6% Fibonacci retracement of the last downward wave. The nearest major support is located at the psychological $50,000 level and as long as the price sits above one should expect the price to continue to rise. Source: xStation5
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