TOPICS DISCUSSED IN THIS MARKET BRIEFING:
- LEuropean stock exchangesevolve without a clear direction
- Wall Street penalized by Omicron
- Graph of the day – Dogecoin : a consolidation in a range
European stock markets evolve without a clear direction
European stock exchanges up slightly on Tuesday and could therefore regain a small part of the ground lost the day before due to new concerns raised by the Omicron variant of the coronavirus, but caution should limit the differences on the eve of the decisions of the US Federal Reserve.
Bad news related to Omicron continues to pile up: in China, several companies in Zhejiang, one of the most industrialized regions of the country, have suspended their activities at the request of local authorities in an attempt to counter a surge in cases of COVID-19. The Asian Development Bank (ADB) has also lowered its growth forecast for the region due to the risks associated with Omicron.
The health situation will necessarily be taken into account by the Fed, whose FOMC, the monetary policy committee, begins its discussions today, but the markets still expect the central bank to accelerate the reduction of its purchases of bonds to reduce inflation.
On this last point, investors will watch at 2:30 p.m. the latest figures for producer prices in the United States, which may have risen above 9% over one year in November.
The Fed’s announcements will be followed Thursday by those of the Bank of England and the European Central Bank (ECB), then Friday by those of the Bank of Japan, a chain that could fuel volatility.
Wall Street penalized by Omicron
Wall Street ended lower on Monday, as concerns over the Omicron variant of the coronavirus revive ahead of the US Federal Reserve meeting. The travel sector fell on Monday as the spread of the Omicron variant worried investors about the development of the health situation.
Investors also expect the Federal Reserve to announce a faster cut in its securities purchases, which could also herald the start of an interest rate hike, at its two-day meeting that ends this week. Wednesday.
As a result, the Dow Jones fell 0.91% to 35,650.95 points. The Nasdaq fell 1.39% and the S&P 500 lost 0.91%.
Othersupdates on financial market news
Oil prices are moving up and down, the evolution of the pandemic giving rise to fears of repercussions on demand even if OPEC has revised upwards its forecasts in the matter for the first quarter of 2022.
Today’s economic calendar:
Find the entire economic calendar to know all the economic events to comer.
CHART OF THE DAY – Dogecoin: a consolidation in a range
Elon Musk, the boss from Tesla, said on Tuesday that the electric car maker would accept dogecoins for the goods on a trial basis.“Tesla is going to make some merchandise purchasable with Doge & see how it goes,” Musk said in a tweet.
On the chart side, the Dogecoin has been moving for several months in a range between $ 0.1668 and $ 0.3402. Thus, prices begin a rebound on the lower limit of the rectangle. In addition, prices have validated a bullish divergence on RSI with a bullish reversal candlestick. From a technical point of view, everything suggests that the market should start a recovery towards the next resistances.
A bullish acceleration in order to rally the 50 and 200 period moving averages now seems possible. Finally, a full price rotation towards $ 0.34 to confirm the trading range phase would be a key theoretical goal.
Of course, this bullish scenario will be invalidated if prices close below $ 0.15 in the days to come.
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