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Stock market: American inflation – Silver: silver under pressure


TOPICS DISCUSSED IN THIS MARKET BRIEFING:

  • LEuropean stock exchangesand “stand-by”
  • Wall Street falls ahead of inflation figures
  • Graph of the day Silver : a consolidation range

European stock markets on stand-by

European stock exchanges retreated at the start of the session on Friday, a few hours before the publication of the latest US inflation figures before the Federal Reserve’s meeting next week.

The US Department of Labor will publish at 2:30 p.m. the monthly consumer price figures in the United States in November, which the Reuters consensus gives up 0.7% over one month and 6.8% over one year against +6 % in October, which was already their biggest increase in 31 years.

These statistics could therefore revive fears related to inflation, especially as they could influence the monetary policy decisions that the Federal Reserve must adopt next Wednesday.

Such a development would plead for an acceleration of the “tapering”, the reduction of the purchases of bonds of the central bank, and a rise of the rates earlier than anticipated so far.

Wall Street pulls back ahead of inflation numbers

Wall Street ended lower Thursday after three consecutive sessions of increases, as investors favored profit taking pending the release of data on inflation in the United States, a few days before the meeting of the Federal Reserve (Fed).

The three indices fell into the red on Thursday against a backdrop of investor wait-and-see behavior on the eve of the publication of the monthly consumer price index in the United States. Better-than-expected data could strengthen the hypothesis that the US Federal Reserve will tighten economic support measures at its December 15-16 meeting.

Jerome Powell, the head of the US central bank, hinted last week that Fed officials would discuss at their meeting a faster tightening of asset purchase programs.

On the other hand, if inflation data points to anticipated interest rate hikes, tech stocks will be under pressure and cyclical sectors favored.

Data released today by the US Department of Labor show that weekly jobless claims in the United States have fallen to a low for more than 52 years.

As a result, the Dow Jones lost 0.06% to 35,754.69 points. The Nasdaq fell 1.71% and the S&P 500 fell 0.72%.

Othersupdates on financial market news

The oil market is on the rise and heading for its biggest weekly increase since late August thanks to the ebb in Omicron concerns.

WTI and Brent have so far shown an increase of more than 6% since last Friday after six consecutive weeks of decline.

Today’s economic calendar:

Find the entire economic calendar to know all the economic events to comer.

CHART OF THE DAY – Silver: a consolidation range

Stock market: American inflation - Silver: silver under pressure

Silver has been consolidating in a range between $ 22.30 and $ 28.50 for several months. Thus, it is clear that Silver is at a crossroads. A weekly close below the lower end of the range would risk accentuating the pullback to support levels. The next technical targets are at $ 21 and then $ 18.85.

On the other hand, if the market manages to regain height in order to preserve the support at $ 22.30, then a further price rotation towards $ 24.80 and $ 28.50 would be possible.

The publication of inflation figures at 2:30 p.m. this Friday should set the pace for the future, and thus trigger a directional flow offering more visibility to investors for the days to come.

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