TOPICS MENTIONED IN THIS MARKET BRIEFING:
- LEuropean Stock Exchangesremain under pressure
- Wall Street down after US inflation data
- Chart of the day – BTC/USD: the psychological support gives in!
European stock markets remain under pressure
European Stock Exchanges retreated at the start of Thursday’s session after the main Wall Street indexes fell the day before, the figures on inflation in the United States fueling concerns about the pace of monetary tightening by the Federal Reserve and its impact on the economy.
The stronger-than-expected rise in inflation heightened concerns about the need for the Fed to accelerate monetary policy tightening.
May data will be released five days before the institution’s June meeting and a 75 basis point rate hike would become a strong possibility in the event of another bad surprise.
Investors’ fears about the economy lead them to take refuge in assets deemed the safest, starting with sovereign debt.
Wall Street down after US inflation data
Wall Street ended sharply lower on Wednesday after the release of consumer price data in the United States fueled investor fears about inflation and interest rate hikes that the Federal Reserve could make in response .
The S&P-500 is now down 18% from its closing record on January 3. The Dow Jones recorded its fifth consecutive session in the red, an unprecedented series since mid-February.
According to the monthly report from the US Department of Labor, inflation may have peaked in April but should remain high enough to force the Fed to tighten monetary policy further.
Investors’ attention will focus on Thursday on new inflation data, with the publication of producer prices in the United States.
Othersfinancial market news
Oil prices are falling again due to economic concerns and fears of recession.
Today’s economic calendar:
Find the full economic calendar to know all the economic events to comer.
CHART OF THE DAY –BTC/USD: psychological support is giving way!
the Bitcoin fell to its lowest level in 16 months, while the collapse of TerraUSD, a so-called stablecoin, underlined the tension in the cryptocurrency markets.
The fear of a rapid rise in interest rates, particularly from the US Federal Reserve, is depriving bitcoin and others of one of the main breeding grounds of recent months.
On the chart side, the BTC has broken through the famous support at $30,000, so as long as prices move below this level, sellers keep control. A continuation of the decline towards the gap left open on the CME contracts towards 25,000 dollars is now possible. Finally, a bearish excess towards the 200-period moving average would not be ruled out. In the short term, buyers need to come forward quickly in order to regain resistance, otherwise the downside pressure could intensify even more in the coming days.
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