Tuesday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||51.09||-0.13%|
The tragic terror attack by ISIS in Manchester dominated trading so far today, as global stocks were mixed in the cautious environment. Asian markets were mostly lower, with Chines and Japanese equities both losing ground, while the main US indices and European stocks are trading slightly higher. The European benchmarks are still lagging the US market, despite today’s better than expected economic numbers, as the strength of the Euro weighs on local assets. The US indices are close to their recent all-time highs following last week’s steep correction, with the weak Dollar being a positive factor. Volatility is muted so far this week, as last week’s storm seem to have passed very quickly.
That said, safe-haven assets remained relatively strong today, with the Japanese Yen and gold both holding up well below their prior highs. Oil continues to be very strong before the OPEC meeting tomorrow, with only a small correction interrupting the rally yesterday. Trump’s plan to reduce the size of the US strategic reserves (along with several other spending cuts) caused a brief dip in the commodity this morning, but the WTI contract quickly rebounded, and it’s trading near its 4-week highs around $51 per barrel.
Bitcoin continues to hit new all-time highs on a daily basis, while the other major cryptocurrencies experienced another round of rotation. Litecoin, Monero, and Dash took over leadership from Ethereum and NEM, with gains of 15%, 20%, 25% respectively. Ripple found support near the 0.30 level, while ETH and the most recent star Bytecoin sliding by double digits after their huge rally. The total value of the coin market is now at $80 billion, as the last two days added almost $10 billion to the capitalization. Bitcoin almost doubled since breaking out to new highs a month ago, but its market share is now only 46%, proving just how strong the recent weeks have been to cryptocurrencies.
Monero, 4-Hour Chart Analysis
The German DAX index has been relatively weak since last Wednesday’s slump. And it failed to get close to its previous highs so far. The 12,500 support could be in focus if the current bounce fails, while an advance above 12,700 could open up the road for new all-time highs in the coming weeks. Further support is found at 12,375, that could be the initial target of a deeper correction. The MACD indicator is back in neutral territory, while the advancing long-term trend channel is still intact.
DAX, 4-Hour Chart Analysis
Key Economic Releases on Tuesday
|10:00||GERMANY||IFO Business Climate||114.6||113.1||112.9|
|16:00||US||New Home Sales||569,000||611,000||621,000|
Key Economic Releases on Wednesday
|EUROZONE||ECB President Draghi Speaks||–||–|
|CANADA||BOC Rate Decision||0.50%||0.50%|
|US||Existing Home Sales||5.65 mill||5.71 mill|
|US||Crude Oil Inventories||–||1.22 mill|
|US||FOMC Meeting Minutes||–||–|