Market Update – April 27 – Technology Bid, Banks remain a worry.
Trading Leveraged Products is risky
The USD steadied lower at close to 101. Risk appetite improved, amid positive signs in earnings reports. Wall Street finished mixed but near the lows of the day, while US100 managed a modest gain asbetter than expected results from META and robust results from European banks helped to counterbalance lingering jitters at some US banks. Asia stocks all moved higher overnight. GER40 & UK100 are in the red though, as hawkish central bank comments suggest further rate hikes next month. Yields have moved higher overnight. The curve steepened to -49 bps from -55 bps Tuesday and -60 bps Monday. This is the least inverted since April 5.
*FX – USDIndex at 101 as EUR and GBP rise slightly. But JPY held below 134.
*Stocks – #DeutscheBank up 3.5% pre-market, as reported highest pre-tax profit in a decade on strong inflows. #Barclays +1.58% profit rises 27% on back of rising interest rates. #Meta +11.61% after hours, as it reported its first increase in sales in nearly a year due to continued improvements in its advertising business, as the company continues to pare back spending during what Chief Executive Mark Zuckerberg has called a “year of efficiency.” #AstraZeneca beats forecasts as cancer drugs sales pick up.
*Commodities – USOil drifted, falling under $75 per barrel and now down -3.56% to fresh intraday lows of $74.33. The EIA reported a -5.1 mln barrel drop in oil inventories which boosted prices, but only temporarily. Angst over a recession is building again amid concerns over regional banks and tightening credit conditions. And even though the markets are pricing in the end of Fed rate hikes after next month’s 25 bp hike, upcoming data on Q1 GDP and ECI may not give the FOMC the opportunity to pause, and that is adding to the threat of a slowing/contracting economy. There are also concerns over the strength of China’s recovery. Concurrently, Russian supplies are reportedly hitting the market via Asian ports. Additionally, Bloomberg reported a deterioration in oil-refining profits over the last few weeks, which has companies considering lower processing rates. And one more thing today, the USD is recovering into the afternoon and that is pressuring prices.
*Gold – at $2001.
*Cryptocurrencies – BTC closed unchanged reversing all gains up to $30K. Currently stettled to $28900.
Today - EU Confidence, US GDP & Earnings: Amazon, Intel, Mastercard etc.
Biggest FX Mover @ (06:30 GMT) NZDJPY (+0.65%) up to 82.30. MAs aligned higher, MACD histogram & signal line rising, RSI 65, OB 89 but flat.
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Click HERE to access the full HFM Economic calendar.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!
Click HERE to READ more Market news.
Andria Pichidi
Market Analyst
HFMarkets
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
