TOPICS MENTIONED IN THIS MARKET BRIEFING:
- LEuropean Stock Exchangesweighed down by fears of growth
- Wall Street undermined by rates and the Fed
- Chart of the day –BTC/USD: ae channel output
European stock markets weighed down by fears of growth
European Stock Exchanges fell sharply at the start of Monday’s session, fears of an economic slowdown with restrictions linked to COVID-19 in China and a rapid rise in interest rates in the United States penalizing all major equity markets.
Investors remain concerned about the prospect of accelerated monetary tightening in the United States to counter inflation as well as the evolution of the COVID-19 epidemic in China, in particular in its economic center Shanghai but also in Beijing. .
In this context, the re-election of Emmanuel Macron as President of the Republic in France is not enough to reverse the trend, especially since his victory against Marine Le Pen was expected by market players.
As for the European Central Bank, the idea of a first rate hike this summer seems to be gaining ground. According to nine sources, the institution’s officials are ready to end its asset purchase program as soon as possible and to raise its interest rates as early as July.
Without going so far as to mention a rate hike this summer, ECB President Christine Lagarde said on Friday that a hike before the end of the year was very likely.
Wall Street undermined by rates and the Fed
Wall Street ended sharply lower on Friday, weighed down by disappointing corporate results and the decline in growth stocks with the prospect of a rapid rise in interest rates in the United States.
Concerns over the Federal Reserve’s monetary policy continued to weigh on major growth stocks after hawkish comments from the institution’s chairman, Jerome Powell.
The coming week will be driven in particular by the results of “big techs” including Microsoft, Apple and Google (Alphabet) and Facebook (Meta).
Othersfinancial market news
Oil prices fall amid lingering concerns over the possibility of a longer lockdown in Shanghai and a rate hike in the United States, both of which could hurt global economic growth and demand .
Today’s economic calendar:
Find the full economic calendar to know all the economic events to comer.
CHART OF THE DAY -BTC/USD: a channel exit
Le Bitcoin has been faltering for several sessions and the selling pressure is not diminishing. On the contrary, the sellers pushed in a key level around $40,000. Prices were consolidating in a downtrend channel, so the breakout of the lower boundary opens the door for further decline to the next support levels.
If the buyers do not show up quickly, the market could rally to the lower limit of the long-term channel towards $33,850 / $35,000. La correlation between Bitcoin and US tech stocks reached record levels. Therefore, BTC behaves like a growth stock. A new leg down on the Nasdaq 100 would also drag the cryptocurrency sector down if the current context would deteriorate further.
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