GOLD
Gold prices dipped slightly in early Asian trading, maintaining a strong foothold above the $2,150 mark. Despite minor fluctuations, bullion markets have experienced relative calmness since Monday, with traders eagerly awaiting the conclusion of today's Federal Reserve meeting. While no surprises are anticipated, there remains uncertainty regarding the FOMC's current stance, given the resilience of the US economy and persistent inflation. A hawkish stance could entail the intention to prolong the duration of high interest rates beyond previous expectations, potentially bolstering treasury yields and the dollar, which could, in turn, dampen gold prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
European equities traded slightly lower on Wednesday as market sentiment remained on hold ahead of the busiest day of the week on the macro front for traders.
The "wait and see" stance prevailed across the old continent during the first exchanges following the opening bell. EU benchmarks were mostly down, with the worst performers found among consumer cyclical stocks due to a drop from the luxury sector after LVMH and Hermes were caught in the storm triggered by the announcement made yesterday by Kering regarding the drop in sales for Gucci products in Asia.
Elsewhere, investors are holding their breath ahead of an extremely busy day.
UK equities have already been shaken by this morning's CPI print, which came in lower than expected. Now, all eyes will turn towards the EU and the US as investors wait for the EU consumer confidence data alongside a speech from ECB's Christine Lagarde ahead of Fed Chairman Powell's press conference about the FOMC's next monetary move in the afternoon.
Even though it is widely anticipated that there will be no rate change in the US, investors desperately need more clarity in the Fed's outlook regarding monetary policy. Assessing whether Jerome Powell maintains his hawkish stance or surprisingly provides more dovish hints will be key in shaping market sentiment for the next couple of weeks.
The STOXX-50 still trades without clear direction, inside its 20-point wide range between 4,971pts and 4,991pts so far.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.