DJ futures fell more than 200 points but recovered some of the losses
Ichimoku Kinko Hyo NZD/JPY: The NZD/JPY pair is trading below the Kumo…
CAD strengthened after oil surged
Information is not investment advice
Ichimoku Kinko Hyo
CHF/JPY: The pair is trading below the cloud. Downward pressure would lead the pair to exit further the cloud, confirming a bearish outlook.
Fibonacci Levels
XAG/USD: Silver continuous to stand above 23.6% retracement area. Silver has entered a consolidation phase.
EU Market View
Asian equity markets traded cautiously as the region battled to shrug off the tech-led declines in the US. European stock markets are seen opening mixed on Wednesday, as investors digest the sharp pullback in the tech sector overnight ahead of a fresh round of corporate earnings. The tech-heavy Nasdaq Composite ended 1.9% lower on Wall Street Tuesday as investors dumped mega-cap stocks, the market’s darlings on the way up, on concerns of rising interest rates following comments by Treasury Secretary Janet Yellen. "It may be that interest rates will have to rise somewhat to make sure that our economy doesn't overheat, even though the additional spending is relatively small relative to the size of the economy," Yellen said at a virtual event Tuesday.
The dollar tried to extend a rally on Wednesday as chatter about the possibility of higher U.S. interest rates and a sell-off in tech stocks soured risk sentiment to the benefit of the safe-haven currency. So far, Federal Reserve Chair Jerome Powell has argued the labor market is still far short of where it needs to be to start talking of tapering asset buying. Three more Fed officials are speaking later on Wednesday providing the opportunity for further market-moving comments. That position could be tested on Friday should the April payrolls report be as strong as some are suggesting. The median forecast is for a rise of 978,000, but estimates stretch as high as 2.1 million.
Oil prices surged Wednesday, with a sharp fall in US crude stockpiles adding to increased optimism the reopening drives in Europe and the US will boost overall fuel demand.
India's central bank asked banks on Wednesday to let certain borrowers have more time to repay loans, among other support measures, amid a major second wave of COVID-19 infections in the country that has led to strict lockdowns in several states.
Looking ahead, highlights include Eurozone & US services & composite PMIs, ISM services PMI, DoEs, Fed's Evans, Rosengren, Mester, ECB's Lane speeches.
EU Key Point
- India continues to struggle to get a grip on the virus.
- Germany reports 18,034 new coronavirus cases, 285 deaths in the latest update today.
- A third COVID-19 vaccine shot will be offered to people over 50 in the UK.
- Singapore has reimposed tougher restrictions on gatherings and business activity.
- Japan is considering extending the state of emergency in Tokyo and other areas.
- Canada - new COVID-19 restrictions announced for Alberta province.
- Fed's Kashkari says the Federal Reserve has powerful tools if inflation surprises higher.
- RBNZ Dep Gov Bascand says there is a greater risk of a house price correction.
- Australia April Markit PMIs, final: Services 58.8 (prior 55.5) & Composite 58.9 (prior also 55.5).
Gerasimos Papagiannis
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