Global Sell-Off Continues: Indices and Commodities Drop

Greetings traders, as we dive into a turbulent start to the week, the market is reacting to numerous shocks, notably from the previous week’s developments. The substantial strengthening of the Japanese yen is causing considerable unease.

Economic Calendar: Today’s calendar is light, featuring only the ISM Services PMI from the US, anticipated at 51.4. No major earnings reports from top-tier companies today, leaving traders to digest last week’s data and prepare for the upcoming announcements.

Market Movements: The aftermath of Friday’s non-farm payrolls is still rippling through the market. Significant drops are seen across major indices: Nikkei futures have plummeted by 7%, Nasdaq by 4%, S&P 500 by 2.6%, and the Russell 2000 by 4%. European markets are also seeing substantial declines, with DAX, CAC 40, and FTSE each down around 2%, indicating a strong bearish sentiment.

Currency and Commodity Insights: The Japanese yen continues to show remarkable strength, significantly impacting the market. Safe haven currencies like the Swiss franc are also gaining, while the Australian dollar, British pound, and New Zealand dollar are under pressure. Commodities are struggling; silver, palladium, and platinum are down over 3.5%, and oil prices are falling sharply, reminiscent of early COVID-19 market conditions.

Traders are bracing for a volatile week ahead, and we will be closely monitoring the markets for potential corrections and profitable opportunities.

Source: https://www.axiory.com/analytics/market-news/global-sell-off-continues-indices-and-commodities