Conservative risk appetite; the Dow Jones soars without brake dragging down the SP500 index and the Nasdaq index… Disappointment on the side of Wells Fargo and BlackRock shares


European indices ended today’s session higher, erasing some of the recent losses, with Dax jumping 2.76% led by automakers. Over the week, the German index lost nearly 2%. Next week, investors’ attention will turn to the ECB’s monetary policy decision in which the central bank is expected to make its first rate hike in 11 years.

The Dow Jones pulls without brake dragging the SP500 index and the Nasdaq index

The Dow Jones is trading up almost 2.0%, while the S&P500 and Nasdaq are up 1.6% and 1.4% respectively, with consumer confidence from the University of Michigan better than expected, eclipsing stronger-than-expected retail sales figures.

U.S. retail sales rose 1% month-on-month in June, beating forecasts of a 0.8% rise and recovering from a downward-revised decline of 0.1% in May. The figures showed that consumer spending remains strong, but also reflects a general increase in the prices of goods and services, so the Fed will mostly stick to its tightening plans.

On the earnings front, BlackRock (BLK.US) and Wells Fargo (WFC.US) posted disappointing quarterly results, while Citigroup (C.US) surprised on the upside.

WTI Oil tested the $95.00 level, while Brent surged above $101.00 as Saudi Arabia is not expected to unilaterally announce an oil production increase at the meeting with President Biden. Additional production in most OPEC member countries is reaching full capacity.

Copper prices briefly dipped below $7,000 for the first time since 2020, however, later in the session buyers managed to erase most of the losses.

Mixed moods prevail in the precious metals market. Gold retested $1,700, a level not seen since August 2021 as the dollar continues to trade near 20-year highs and Treasury yields remain elevated. Meanwhile, as silver is up more than 1.5% and nears resistance at $18.70

Major cryptocurrencies strengthened during today’s session as risk sentiment returned. Bitcoin tested the resistance at $21,000 and Ethereum broke above the $1,200 level.

Conservative risk appetite;  the Dow Jones soars without brake dragging the SP500 index and the Nasdaq index... Wells Fargo and BlackRock shares disappoint - 1

GOLD – The sellers again failed to breach the psychological support threshold at $1700, which is marked by the lower boundary of the 1:1 structure.

As long as the price stays above, another bullish push can be initiated. On the other hand, in case of a breakout to the downside, the next target for the bears is at $1670, where the March 2021 lows are located.

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