- European indices erased yesterday's gains and finished today's session sharply lower. DAX fell 1.26% while the CAC40 and FTSE100 dropped 1.20% and 1.07% respectively;
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Wall Street completely negates the gains of the past few days. The Dow Jones is down 3.27%and is heading for its biggest loss since 2020, while the S&P 500 and Nasdaq tumbled 3.52% and 4.37% respectively;
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Today's US housing market data showed signs of cooling off. Building permits dropped 3.2% from a month earlier while housing starts declined 0.2% mom to an annualized 1.724 million units in April, after a revised 2.8% drop in March and below market forecasts of 1.765 million.
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The entire retail sector in the US is performing disastrously as profits are eaten by rampant inflation. The massive sell-off continues at Walmart, which has lost nearly $60 billion in capitalization in just two days. Shares of Target and Costco are down 25% and 12% today, respectively.
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S&P Dow Jones Indices removed Tesla from its S&P500 ESG index due to concerns how the electric carmaker is handling autopilot crashes;
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Standard & Poor's analysts today cut the growth rate for the US economy by 80 basis points from 3.2% to 2.4%.
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The EURUSD pair fell below the 1.049 barrier after US Fed Evans reaffirmed the baseline scenario of 50 bp hikes at the next and subsequent meetings, while markets hoped for more dovish comments.
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JPY and CHF are the best performing major currencies, while GBP and EUR lag the most ;
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Brent and WTI oil prices fell nearly 3% as fears regarding looming recession returned.
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Gold benefited from worsening moods and the commodity is currently trading at $1820.
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Extreme fear prevails on the crypto market. Bitcoin fell below $29,000 and Ethereum broke below the psychological barrier of $2,000.
Risk-off sentiment once again dominated the markets. European and US indices resumed downward moves and NASDAQ index is currently struggling to stay above the psychological support at 12,000 points. Large companies such as Walmart and Target cannot cope with the rising inflation, which raises concerns about the situation of companies from other sectors with a less established position on the market. Oil prices fell sharply despite the unexpected decline in US crude inventories. The risk-off sentiment supported the valuation of gold, which returned above 1820 USD. Cryptocurrencies were overwhelmed by a wave of panic, with BTC falling below 29 000 USD.
US500 pulled back sharply during today's session and is again testing key support at 3965 pts which is marked with a lower limit of the 1:1 structure and lower boundary of the descending channel. If current sentiment prevails the next target for sellers is located around the 3800 pts area which coincides with 38.2% retracement of the upward wave launched in March 2020 can be found. On the other hand if buyers regain control, then another upward impulse towards resistance at 4180 pts may be launched. Source:xStation5
