Risk sentiment fading

lmportant news this week:

Markets digest inflation data as stocks lose momentum

US Core PCE inflation came in broadly in line with expectations but remains stubbornly elevated, reinforcing the view that inflation is proving difficult to bring back to target. At the same time, GDP growth surprised to the upside, although part of the increase reflects higher prices rather than stronger real economic activity. The US dollar softened slightly during the session, but the broader trend remains constructive as markets continue to expect the Fed to maintain a restrictive policy stance for the time being.
Equity markets continue to lose momentum. The S&P 500 has now broken below its rising 50-day moving average, a technical development that could encourage additional selling pressure if buyers fail to reclaim the level quickly. Technology stocks remain particularly vulnerable after their strong rally this year, while investors increasingly rotate into more defensive sectors. Precious metals also remain under pressure, with Silver reacting more negatively than Gold as industrial demand concerns grow alongside weaker equity markets.

Market talk

Risk sentiment remains fragile. Bitcoin continues to stabilize around the important 60,000 USD support zone, but the broader altcoin market remains noticeably weaker, suggesting investors are still cautious about taking on additional risk. FX markets continue to be driven primarily by expectations for US interest rates, while equities search for a new catalyst after months of strong gains. If inflation remains sticky and growth stays resilient, the Fed is likely to remain patient, potentially keeping markets in a consolidation phase over the coming weeks.

Tendencies in the markets

Equities correcting, USD sideways, BTC at support, oil weak, Silver weak, Gold weak.