Stocks worldwide plunged on Tuesday and EU indices were trading at this year’s lows, while the US benchmarks dropped closer to October’ lows. The DAX index was down 1.2% during the London session, while the SP500 benchmark lost 1.5% shortly after the US opening bell and the Nasdaq was down another 2% to trade at 7-month lows.
Sentiment worsened further on Tuesday as FAANG stocks continued their demise, which dragged the entire stock market down.
From the macro data point of view, US building permits rose slightly from 1.241 million annually to 1.263 million annually, while housing starts jumped more than 6% from 1.21 million to 1.228 million. The homebuilders sector is one of the worst performing sectors this year amid rising mortgage rates.
US yields followed stocks lower as the risk-off sentiment usually benefits US bonds, which pushes their yields down. The greenback also surged today and the dollar index has managed to defend the bullish trend line for now.
Copper is now trying to breach from the big consolidation triangle to the upside, which could be a positive signal for inflation outlook, but also for cyclical stocks and therefore this commodity should be closely watched over the next days.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
© 2000-2020. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at email@example.com.