Tuesday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||46.30||-0.61%|
Stock markets are losing ground today, led by European stocks that are being pushed lower by the new highs in the Euro. The DAX and the Euro Stoxx 50 indices are both headed towards their recent correction lows, while the NASDAQ is holding up well, after being in the forefront of the decline previously. The S&P 500 and the DOW, on the other hand, are relatively weak as the tapering of the rate hike expectations are weighing on the financial sector in the US. With still the Federal Reserve in the focus, the better than expected earnings of Bank of America were not enough to lift the segment, as the decline in Treasuries dragged the majors down.
XLF, 4-Hour Chart Analysis
Currency markets are dominated by the steep decline in the Dollar that hit yet another 12-month low against the European common currency and declined sharply against most of the other majors as well. The concerns regarding Trump’s healthcare bill and next year’s budget proposal also weigh on the Dollar. Gold is benefiting from the demise of the Greenback, while industrial commodities are only slightly higher amid the broad-based growth fears, while oil is very volatile so far. The Great British Pound is weak following the miss in the CPI index, as the GBP/USD pair continues to stick to the 1.30 level amid the ongoing Brexit talks.
Gold, 4-Hour Chart Analysis
The crypto segment has been lifted by a number of bullish factors, as Bitcoin seems more and more likely to avoid the hard fork on the August 1, while the sharp decline of the weekend has been reversed by Ethereum. Small cap coins are also showing bullish signs, and the other majors are trading higher as well. The one-month long correction might be over, given the strong bullish momentum, and the oversold readings on the long-term charts. That said, most of the majors are still in short-term downtrends with Litecoin and Ethereum Classic still leading the way higher.
Bitcoin, Daily Chart Analysis
The S&P 500 is well inside both the short- and long-term rising trends despite pulling back from its all-time highs today. The short-term MACD is signaling a correction, but as long as the index is above the 2430 level, new highs are likely in the coming period. The NASDAQ is also holding up well after the deeper correction and that can be a bullish sign, with the decline of the Dollar also boosting US equities. The long-term rising trendline is near 2390 now, with strong support at 2400 as well.
S&P 500 Futures, 4-Hour Chart Analysis
Key Economic Releases on Tuesday
|3:30||AUSTRALIA||Monetary Meeting Minutes||–||–||–|
|11:00||GERMANY||ZEW Economic Sentiment||17.5||17.6||18.6|
Key Economic Releases on Wednesday
|14:30||US||Building Permits||1.20 mill||1.17 mill|
|14:30||US||Housing Starts||1.16 mill||1.09 mill|
|16:30||US||Crude Oil Inventories||-3.6 mill||-7.6 mill|
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