TOPICS DISCUSSED IN THIS MARKET BRIEFING:
- LEuropean stock exchangesleaded by the Omicron variant
- Wall Street ended the week in the red
- Graph of the day – Bitcoin : a $ 44,000 support zone
European stock markets weighed down by the Omicron variant
European stock exchanges They fell sharply at the start of trading on Monday, as investors worried about the rapid increase in COVID-19 cases due to the Omicron variant and the economic impact of restrictions linked to the pandemic.
The Netherlands decreed a lockdown on Sunday which should remain in place at least until January 14 to cope with the anticipated upsurge in contamination and uncertainty hangs over what other European countries could decide, including the United Kingdom. Kingdom and Italy.
Investors’ caution can also be explained by the still high level of inflation and by the more restrictive guidelines taken by several large central banks, including the Federal Reserve.
Added to these concerns is the possibility that Joe Biden’s massive social reform plan does not pass the Senate after an elected Democrat announced that he would not support the project.
Wall Street ended the week in the red
Wall Street ended the week in the red on Friday, penalized in particular by major technology stocks with the prospect of an interest rate hike in the United States next year.
On the one hand, the Omicron variant is spreading rapidly in certain regions, such as New York. On the other hand, investors are trying to assess the scenarios that will unfold next year, in terms of monetary policy.
The three major New York indices ended sharply down over the week, the Nasdaq by nearly 3%, as investors digested the Federal Reserve’s decision to accelerate the end of its policy of supporting the economy. in place during the COVID-19 pandemic.
As a result, the Dow Jones lost 1.48% to 35,365.44 points. The Nasdaq lost 0.07% and the S&P 500 lost 1.03%.
Othersupdates on financial market news
The oil market is dropping sharply as rising COVID-19 cases in Europe and the United States fuel concerns among investors, who fear the new restrictions will affect demand for crude.
Today’s economic calendar:
Find the entire economic calendar to know all the economic events to comer.
CHART OF THE DAY – Bitcoin: A $ 44,000 Support Zone
Bitcoin is still in a phase of big correction and the absence of a catalyst is preventing the asset from regaining color. In the short term, sellers keep control and prices continue to push down every support.
BTC is expected to test the next level of support around $ 44,000 in the coming days. This key pivot is a strong area of polarity coupled with the 61.80% Fibonacci retracement threshold taking the last wave of the upside.
As a result, a beginning of a bullish recovery could begin if a buying flow occurs. The bullish restart will then be confirmed if the $ 50,500 is crossed.
On the other hand, if $ 44,000 support gives way to selling pressure, then Bitcoin may continue to fall towards $ 41,000.
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