Market Turmoil Continues: Indices and Commodities Face Bearish Pressure

Hello traders, and welcome to Wednesday! Yesterday was a particularly eventful day in the markets, especially on the indices front. We saw a sharp drop across the board, with tech stocks taking a significant hit. NVIDIA was a major catalyst, dragging down global chip stocks, which in turn caused a notable decline in major indices. The S&P 500, FTSE, and DAX all bounced off key horizontal resistance levels, signaling the potential start of a larger bearish correction. This could be a pivotal moment, as traders assess whether this downturn will develop into a more substantial pullback.

The commodities market also experienced a rough session. Oil took a significant dive, breaking through key support levels, and other commodities followed suit. Silver continued its downward trajectory, and even gold, which has been relatively stronger than silver, faced pressure. This morning, during the early hours of the European session, gold is making a decisive move lower, currently attempting to break through a critical support level at $2,480 per ounce. With commodities flashing red, it appears we may see continued bearish momentum in this sector.

On the currency front, the weakest performers today are the Canadian Dollar, New Zealand Dollar, and Australian Dollar. This weakness aligns with the decline in commodities, as these currencies are often closely tied to commodity prices. The Canadian Dollar is particularly in focus today with an important interest rate decision on the horizon. Markets are anticipating a 25 basis point cut to 4.25%, which could further impact the currency. Earlier today, we had GDP data from Australia, which came in as expected at 0.2%. Later in the day, we will also see the JOLTS job openings report and a press conference from the Bank of Canada, both of which are likely to add to today’s market volatility.

Overall, we had an exciting day of market movements and volatility yesterday, and it looks like today could continue in the same vein. Keep your eyes on these key data points and market trends as the day unfolds. Happy trading!

Source: https://www.axiory.com/analytics/market-news/market-turmoil-continues-indices-and-commodities-f