US stocks open in red, sharp slide in oil prices weigh

Haresh Menghani FXStreet

Major US equity indices opened sharply lower on Wednesday as investors turned cautious amid a sharp slide in oil prices and disappointing earnings results from some big-names.

At open, the Dow Jones Industrial Average lost around 75 points and dipped below 18,100 mark. Meanwhile, the broader S&P 500 index fell 8 points to 2,135 and tech-heavy Nasdaq Composite index dropped over 25 points to 5,255.

A continuous slide in oil prices, with WTI crude oil extending its weakness further below $50.00 psychological mark, is exerting pressure on energy stocks and weighing on key indices. Moreover, disappointing quarterly earnings results from Apple Inc. kept investors on the sidelines and has led to a follow through weakness after a downbeat day on Tuesday, led by disappointing consumer confidence data.

In other markets, Asian stock markets closed mostly lower, while European indices were also trading in negative territory. Meanwhile, gold was confined in a narrow trading range as markets now await for this week's key US macro release, advance Q3 GDP release from the US.

In currency market, the greenback, as measured by the overall US Dollar index witnessed some profit-taking move across the board and extended Tuesday's retracement from nearly nine-month highs.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD challenges 1.1800, two-week lows

EUR/USD remains on the defensive, extending its leg lower to the vicinity of the 1.1800 region, or two-week lows, on Tuesday. The move lower comes as the US Dollar gathers further traction ahead of key US data releases, inclusing the FOMC Minutes, on Wednesday.

GBP/USD looks weaker near 1.3500

GBP/USD adds to Monday’s pessimism and puts the 1.3500 support to the test on Tuesday. Cable’s marked pullback comes in response to extra gains in the Greenback while disappointing UK jobs data also collaborate with the offered bias around the British Pound.

Gold loses further momentum, approaches $4,800

Gold recedes to fresh two-week troughs around the $4,800 region per troy ounce on Tuesday. The precious metal builds on Monday’s downtick following a marked rebound in the US Dollar and mixed US Treasury yields across the board.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.