Ipek Ozkardeskaya
Swissquote Bank Ltd
Ugly economic data was responsible for a decent plunge in US equities on Tuesday.
The S&P 500 slid 2% yesterday and Nasdaq took another 3% hit following a soft CB consumer confidence index and sharp fall in Richmond manufacturing index, hinting at softer economic activity as a result of tighter Federal Reserve (Fed) policy. European stocks failed to build on the early gains.
Volatility remains high, and oil prices sustained. The latest API data showed an almost 4-million-barrel decline in US oil inventories, versus 110’000-barrel fall predicted by analysts. An eventual cap on Russian oil may worsen the energy crisis, and OPEC will unlikely relieve stress today. On the economic agenda, plenty of central bankers are due to speak today at a European Central Bank (ECB) event, including the Fed Chair Jerome Powell and the Bank of England (BoE) Governor Andrew Bailey. But all eyes are on Christine Lagarde, and her magical anti-fragmentation tool, which will solve the Euro zone debt problem. But euro bulls are increasingly less convinced!
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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