Please try another search
The dollar surged and Bitcoin plunged on Monday as US futures contracts, including on the Dow, S&P, NASDAQ and Russell 2000 slipped from records posted by underlying benchmarks, while European stocks retreated from 10-month highs.
Traders attribute the selloff to profit-taking amid spiking coronavirus cases in Europe, as well as China reporting its biggest daily increase in cases in five months, which hit energy and mining shares.
The seesawing market narrative once again swung from optimism on COVID-19 vaccines and US fiscal stimulus to pessimism of unsustainable valuations amid a global pandemic that seems to only get worse with time.
In Europe this morning, the STOXX 600 Index dropped 0.4% but was off earlier 0.6% lows, after Germany—the continent’s economic steam engine—suffered 40,000 deaths despite imposing some of the harshest pandemic restrictions. Oil producers BP (LON:BP), Royal Dutch Shell (AS:RDSa) and Total (PA:TOTF) sold off after China—the world’s biggest oil importer—announced a lockdown in Shijiazhuang, the Hebei province's capital and the epicenter of the new outbreak.
The dollar rallied after US yields, including on the 10-year Treasury note, jumped, rewarding savers, but weighing on dollar-denominated commodities and mining stocks.
Bitcoin suffered a free-fall of nearly 16% from Friday’s close.
The digital asset rebounded from almost $34,000 to the mid-$35,000 after nearing the minimum level considered a correction on a Fibonacci scale.
Earlier today Asian shares were also selling off. China’s Shanghai Composite (-1.1%) underperformed, ending sharply lower after data revealed that the country’s factory prices fell to the slowest pace in ten months.
The renewed risk-off sparked a race into Treasuries, causing a falling gap, as there were only buyers at these levels. Still, after last week’s deep selloff, yields are still well above the 1.00% psychological marker, at 1.109%.
The dollar posed a rising gap—in a mirror image of the falling gap seen in yields—but has seen little movement since.
While having jumped last week above the most recent downtrend line since the early November high, the dollar is expected to face the blowback of going against the downtrend since the March highs.
Gold surprisingly pushed higher despite a dollar surge, presumably on its safe haven status amid an equity selloff.
While it found resistance by the 200 DMA, the yellow metal is forming a hammer, though the 200 DMA’s resistance formed a small upper shadow, diluting some of the bullish impact. After the small H&S achieved most of its implied target, gold may be forming a large H&S bottom.
Oil retreated from the $52 level, as fears of continued lockdowns hampered demand.
Recent headlines appear to have shaken investor sentiment. It’s premature to read too much into a few days of weaker-than-expected survey numbers. More importantly, the latest...
For every trader, choosing a reliable broker is a cornerstone of success. Achieving consistent gains in trading is not a walk in the park as it is, and you don't want any extra...
Tariff talk and weak US data fueled a risk-off reaction Nvidia earnings may test market’s risk appetite More Fed rate cuts priced in; a “Fed put” reaction expected? Both dollar...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.