New cases of monkey pox in Europe are fueling sell-off
World indices rose sharply early in the session supported by optimistic news from China. PBoC decided to trim its mortgage reference rate by a wide margin, the second cut this year in order to revive its slowing economy. It seems that news from the second biggest economy offered investors some temporary relief and many of them decided to take advantage of lower valuations even despite disappointing forecasts from retailers, including Walmart and Target. Nevertheless, sellers regained control at the end of the European session. As a result, indices from the Old Continent erased nearly half of the early gains, while Wall Street indices resumed downward move as overall macroeconomic outlook still looks grim and one need to keep in mind that the economy has not yet fully begun to respond to interest rates and excessive inflation. Investors are still concerned about recession or stagflation scenarios and the fact that the FED may not be able to help the markets. Also the new cases of monkeypox recently detected in several Western European countries are also negatively impacting market sentiment.
US100 pulled back sharply after buyers again failed to stay above psychological resistance at 12000 pts and is currently approaching key support at 11700 pts, around which many stop losses are probably placed. Should a decisive break lower occur, downward correction may deepen. Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appThis 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 SÄ dowy) 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.