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Daily summary: Weak economic data stoke recession fears

  • European indices finished today's session mostly higher with DAX up 0.35%, lifted by gains in energy, insurance, utilities, and basic resources. The FTSE 100 closed 0.9% higher led by gains in commodity-linked stocks;
  • Beijing shortened the quarantine time for inbound visitors which helped market sentiment early in the session and support airline stocks;

  • Wall Street indices erased early gains and are trading in red. Dow Jones trades nearly 1.0% lower, while S&P500 and NASDAQ fell 1.48% and 2.20 % respectively and many analysts believe that the Fed is considering the so-called controlled recession scenario;

  • Moods in the US worsened after Richmond Fed Index has dropped to the lowest levels since the pandemic, while consumer sentiment, according to the Conference Board, hits lowest level since February 2021;

  • Oil prices rose for the third session, with WTI crude futures trading above $110 per barrel, while Brent climbed  above $117 per barrel amid reports that the UAE and Saudi Arabia are producing near capacity, while political unrest in Libya and Ecuador threatened to tighten supply further.

  • Gold trades flat above support at $1820 while silver fell below $21.00 level;

  • CAD and USD are the best performing major currencies, while NZD and GBP lag the most;  

  • Major cryptocurrencies recorded slight declines today. Bitcoin fell  below $20,600 and Ethereum approaches $1170 level;

US100 fell over 2% on Tuesday and is currently testing local support at 11785 pts which is marked with previous price reactions. Source: xStation5

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Chart of the day- AUDUSD (18.08.2022)