TOPICS MENTIONED IN THIS MARKET BRIEFING:
- LEuropean Stock Exchanges up sharply before the Fed
- Wall Street weighed down by technology stocks
- Chart of the day –ETH/USD: resistance at $2,550
European stock markets up sharply ahead of the Fed
European Stock Exchanges are moving up sharply on Wednesday morning, benefiting from a technical rebound ahead of the US Federal Reserve’s monetary policy decisions expected in the evening.
The Federal Reserve is due to announce at 8 p.m. the decisions taken at the end of the two-day meeting of its Federal Open Market Committee on a rate hike and a reduction in the central bank’s balance sheet, two key issues as inflation remains one of the major concerns of investors.
Nevertheless, nervousness should remain in financial markets before the end of the Fed’s monetary policy meeting and while tensions remain high around Ukraine. New discussions in “Normandy format”, between political advisers from Russia, Ukraine, France and Germany, will take place on Wednesday in Paris.
Wall Street weighed down by tech stocks
Wall Street ended lower on Tuesday, weighed down by the decline in major technology stocks amid uncertainty about the content of the decisions of the US Federal Reserve expected this week and growing geopolitical tensions.
Like the day before, the main indices experienced a choppy session, alternating between sharp declines and slight gains. The S&P 500 has once again flirted with the correction zone, down 10% or more from its January 3 closing high.
The Fed began its two-day monetary policy meeting on Tuesday, at the end of which it will publish a statement eagerly awaited by investors, eager to know precisely the roadmap of the American central bank with regard to the rise in interest rates to fight inflation.
On the sidelines of the soaring prices, geopolitical tensions are adding to the uncertainties, while NATO has sent military reinforcements to its eastern flank and the United States has put thousands of soldiers on alert in the event of a deployment in Eastern Europe in the event of an offensive by Russia against Ukraine.
The situation is raising fears of an oil supply crunch and fueling higher crude prices, which on Tuesday helped gains in the energy sector, which saw the strongest rise among major S&P 500 sectors.
Consequently, the Dow Jones fell 0.19% to 34,297.73 points. The Nasdaq lost 2.28% and the S&P 500 fell 1.22%.
Othersfinancial market news
Oil prices are stabilizing as investors tempted to take profits after hitting seven-year highs last week amid heightened geopolitical tensions.
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CHART OF THE DAY – ETH/USD: resistance at $2,550
L‘Ethereum seems to have stabilized for a few days, Monday’s session with a long wick is characterized by a hammer like pattern and also a drying up of sellers.
In the short term, ETH/USD is trying to materialize a market bottom to start a rebound. For the moment, the prices are working the resistance at 2,550 dollars, a crossing of this threshold would allow an acceleration towards the upper limit of the channel towards 2,875 dollars. Currently, the sellers are not giving up, only an exit from the top of the channel would reverse the downtrend.
If not, on the resistance at $2,550, the decline is likely to continue towards the next support at $1,950. It is therefore necessary to wait either for price stabilization on a key level with a reversal signal, or for a break of resistance to make purchases, under penalty of suffering a new leg of decline.
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