TOPICS MENTIONED IN THIS MARKET BRIEFING:
- LEuropean Stock Exchangesinitiate a technical rebound
- Wall Street unscrew, the techs dive
- Chart of the day – Bitcoin : a long-term consolidation range
European stock markets begin a technical rebound
European Stock Exchanges bounced back in early trading on Tuesday after falling the previous day to their lowest level in two months, the prospect of a rebound on Wall Street favoring bargain buying even if fears linked to the rise in interest rates Interest and slowing global growth continue to worry investors.
The rate hikes decided last week in Australia, the United States and the United Kingdom, among others, are far from having allayed fears linked to inflation and, on the other hand, are fueling those of a contraction in activity and a deterioration in the earnings outlook for listed companies.
The health situation in China, which is disrupting supply chains and raising fears of a marked drop in demand, is also weighing on the trend.
Investors also showed their nervousness before the publication on Wednesday of the inflation figure in the United States for April (CPI index).
Wall Street unscrews, the techs plunge
Wall Street ended sharply lower on Monday amid concerns over rising bond yields and concerns over inflation and central bank policy tightening.
Reflecting fears for oil demand and the pace of global activity with anti-Covid health restrictions in Beijing, energy stocks and crude prices have plunged in concert. The VIX index, known as the “fear index”, which measures market volatility, climbed to almost 35%, its highest level in two months.
Othersfinancial market news
The oil market, which experienced its worst day since March on Monday, continues to retreat on concerns about global demand, fueled by prolonged confinements in China and monetary tightening in Western countries. Its decline is further amplified by the strength of the dollar.
Today’s economic calendar:
Find the full economic calendar to know all the economic events to comer.
CHART OF THE DAY –Bitcoin: a long-term consolidation range
Lat the fall of Bitcoin yesterday intervened after a new rout of Wall Street and in particular of the index Nasdaq, with strong technological coloring, which dropped more than 4%.
Graphically, BTC is moving in a long-term range between $66,000 and $30,000, so prices have come to test the lower boundary. The main risk for the sector of crypto is to witness a new drop on the Nasdaq.
As a resulteither there is a bullish reversal and a new rotation in price towards $45,000, or it is a bearish break in the direction of the gap left open on the futures contracts around $25,000.
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