Stock market: disappointing indicators and Fed – Gold: the ounce of gold is stabilizing

TOPICS MENTIONED IN THIS MARKET BRIEFING:

  • LEuropean Stock Exchangespenalized by PMI
  • Wall Street punctuated by Powell’s audition
  • Chart of the day Gold: noe flat consolidation

European stock markets penalized by PMI

European Stock Exchanges retreated at the beginning of the session on Thursday after the first disappointing results of the PMI surveys on the activity of the private sector, which are added to the declarations of Jerome Powell, the chairman of the American Federal Reserve, on the risk of a pullback in the United States.

The risk that the rapid rise in US interest rates, considered necessary to regain control of inflation, will lead to a contraction of the first economy is in any case considered increasingly likely by a growing number of large banks of investment.

The “flash” PMI indices in France and Germany are below the consensus, a sign that activity in services and manufacturing industry is slowing faster than expected after the boost given by the easing of health restrictions.

Before Jerome Powell’s second hearing in the House of Representatives, investors will study the figures for unemployment claims in the United States.

Wall Street punctuated by Powell’s hearing

Wall Street ended slightly lower on Wednesday after a session of movement, punctuated by a hearing of Federal Reserve Chairman Jerome Powell before the Senate, where he reaffirmed that the American central bank was “strongly confirmed” to fight against the ‘ inflation.

During a hearing before the US Senate Banking Committee, Jerome Powell said the Fed was “strongly committed” to bringing inflation down while adding that further rate hikes would continue to depend on indicators and developments. economic prospects.

Major indexes pared losses after his intervention, with the Nasdaq even moving into positive territory, reflecting concerns from investors as they struggle to assess how far stocks could suffer from the risks posed to growth by the upsides. rates programmed by the Fed.

Othersfinancial market news

Oil :

The oil market is down as the US president is expected to plead on Wednesday for a temporary suspension of the federal gasoline tax of 18.4 cents per gallon, and at the same time increases the pressure on the giants of the sector which he considers partly responsible for the surge in crude oil prices.

Today’s economic calendar:

Find the full economic calendar to know all the economic events to comer.

CHART OF THE DAY – Gold: a flat consolidation

Stock market: disappointing indicators and Fed – Gold: the ounce of gold is stabilizing

the gold price changes without clear direction for several weeks and prices stabilize in un range within a downtrend channel. Consequently, it will still be necessary to wait for the rupture of one of the two terminals to take advantage of the next directional movement.

On the rise, thehe market will have to cross the upper limit of the channel around $1,880 in order to unlock the upside potential.

On the downside, a break of support around $1,790 would increase selling flow to accelerate towards $1,750.

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