Positive Sessions in Europe Amid Bearish Concerns
08 August 2024
Welcome to Thursday's market update. Despite ongoing concerns about a potential recession and bear market, the indices experienced a rebound yesterday. Although the American session ended with a bearish movement, today's session has been positive so far, particularly in Europe. There's a noticeable uncertainty among traders about whether the recent drop is merely a bearish correction or the beginning of a longer bearish trend. This has resulted in some sideways movement in the indices, but from a technical standpoint, these appear to be corrections within a downtrend, suggesting a continuation of the downward movement. We'll see how the American session unfolds today.
In the currency markets, the Australian and Canadian dollars are showing notable strength, while European currencies like the Euro and British Pound are lagging. Economic data today included New Zealand's inflation expectations at 2% and US unemployment claims, which came in slightly lower than expected, positively impacting stocks. This week's economic calendar is relatively light, but we've seen better-than-expected earnings from Siemens, Deutsche Telekom, and Allianz. We're also awaiting earnings from Eli Lilly.
Turning to commodities, yesterday was a negative day for precious metals like gold and silver, but they are showing upward corrections today. Oil prices are moving sideways but within a bullish correction. The main market focus remains on whether we're witnessing the end of a bearish correction or just a bullish correction within a broader bearish trend. The coming days will be crucial in determining the market's direction.