Equities: global indices under pressure – Deutsche Bank

FXStreet Insights Team FXStreet

Deutsche Bank notes a broad setback in global equities, with the S&P 500, NASDAQ and Russell 2000 all posting notable declines despite stronger growth data. European benchmarks such as the STOXX 600, DAX and CAC 40 also retreated, while Asian markets including Hang Seng, CSI 300, Shanghai Comp and S&P/ASX 200 weakened. Only the Nikkei advanced, largely on a catch-up move.

Global stock indices face broad losses

"All that put a lot of pressure on equities, even though the growth data surprised on the upside. So the S&P 500 (-0.75%) posted its biggest decline in a month, with all the major sector groups apart from energy (+1.04%) losing ground."

"The NASDAQ (-1.13%) and the small-cap Russell 2000 (-1.77%) saw even larger falls."

"Meanwhile in Europe, the STOXX 600 (-0.44%) also saw a pullback, alongside declines for the DAX (-0.66%) and the CAC 40 (-0.39%) as well."

"So equities have also struggled, with losses for the Hang Seng (-0.52%), the CSI 300 (-1.29%), the Shanghai Comp (-0.93%) and the S&P/ASX 200 (-0.80%)."

"The main exception has been the Nikkei (+0.94%) although that reflects a catch-up after the index has been closed for the previous three days."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold loses the grip; $4,000 comes next on the downside

Gold sets aside two daily advances in a row on Friday, opening the door to a potential test of the key $4,000 mark per troy ounce. The precious metal’s retracement follows a decent improvement in the sentiment surrounding the US Dollar, solid NFP data and higher US Treasury yields across the board.

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

The biggest story this week was Tuesday’s US midterm elections, which saw Democrats win control of both the House and the Senate in a clear blue wave. This political shift in the US has triggered sharp price swings across the cryptocurrency market.

Week ahead – Inflation and geopolitics in focus as US political landscape shifts

Post-midterm election euphoria fizzles out as risk aversion prevails. US CPI, PPI and Fedspeak on the radar as Fed hike bets remain supported. Oil retreat pauses on mixed hopes about the ongoing conflicts.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.