Daily summary: Stock market in the red on Tuesday

• European bourses posted biggest one-day drop since January
• US stocks slip for second day
• Dollar rebounds after touching seven-week lows

European indices came under heavy selling pressure today, partially due to the worsening pandemic situation around the world. Nevertheless, it should be noted that the current moves are probably only a correction after the recent strong gains. The UK has put India on its “red list” of travel destinations  due to the quickly accelerating number of new  COVID-19 infections. At the same time, the European Medicines Agency said it has found a possible link between Johnson & Johnson's COVID-19 vaccine and rare blood clotting issues, but backed its overall benefits against any risks. On the corporate front, BMW’s posted better than expected quarterly earnings. DAX 30 fell 1.6%, CAC 40 lost 2.1% and FTSE100 finished 2.0% lower.

US indices fell for a second day despite upbeat corporate earnings. IBM, Johnson & Johnson and Procter & Gamble quarterly figures beat analysts’ expectations while Netflix is scheduled to report after the close. Also, Apple  will hold a virtual event today for its first product unveiling of the year. Meanwhile Tobacco company Altria Group stock plunged more than 7% after the Wall Street Journal reported that the Biden administration is considering a rule that would limit nicotine or ban menthol in cigarettes. Nike Inc shares fell more than 4.0% after Citigroup lowered its rating on the company's shares to "neutral" from "buy" citing China's backlash could hurt the company in the future. When it comes to the commodity market, precious metals are gaining slightly. Gold added 0.45%, while silver rose 0.25%. Crude oil fell by 1.5% and Brent lost 1%. Looking at the Forex market, today we see a rebound in the US dollar, which was under pressure yesterday. The US currency touched a seven-week low of 90.85 earlier in the session however managed to erase early losses and  strengthened the most against the CAD.

Despite today's correction on the EURUSD, the trend remains upward. Currently, the pair is testing the lower limit of the 1: 1 structure. If buyers  will activate here, then another upward impulse may occur. However, if sellers will manage to uphold recent momentum, then the sell-off may reach the support zone around 1.20 -1.1970.

EURUSD interval H1. Source: xStation5