The possibility of another round of discussion between Russia and Ukraine and Jerome Powell’s more dovish than expected testimony saved the day for equity investors yesterday.
The S&P 500 rallied 1.86%, while Nasdaq gained 1.62% on Wednesday, but the 50-DMA finally crossed below the 200-DMA confirming a long-awaited death cross formation on Nasdaq’s daily chart.
Elsewhere, according to S&P Global Market Intelligence, the short interest against the energy stocks has peaked to the highest levels in more than a year, as the latest rally in global energy stocks ‘may be petering out, even with oil prices surging to their highest levels since 2014’.
But US and Brent crude continue their jaw-dropping advance this morning as OPEC+ decided to maintain its production target unchanged at 400’000 extra barrels per day from April.
Among safe havens, demand in US dollar remains strong. Gold performs well, but Bitcoin becomes a risky safe haven as the latest news suggests that the US Department of Justice announced a new task force broadly designed to enforce sanctions, which will also target efforts to use cryptocurrency to evade US sanctions.
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