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XTB TRADEBEAT

Stocks under pressure at the start of the week; TRY lower after earlier gains

Summary:

  • Stocks fall lower with US30 back at 200 day SMA
  • DE30 drops to lowest level since April
  • Oil slides as Brent-WTI spread narrows
  • Latest CFTC data shows big changes
  • Cryptos make tentative gains

After a solid day of gains for stocks on Friday they’ve come back under pressure at the start of the new week with the US indices in the red and looking set for a pretty big day of losses. Of all US indices, the US30.cash appears to be perhaps at the most interesting level. The market has been the worst performing of the 3 large caps in the US and has fallen to retest its 200 day SMA once more.

Let’s take a closer look at the German DE30 in order to assess sellers’ chances to continue their run begun shortly after the ECB meeting. On last Thursday we saw a a sizeable decline bringing the price below the key line standing at 12550 points. The market has dropped by more than 2 % today and currently trades at its lowest level in over 2 months

The price of Oil is falling today as the rally seen following the latest OPEC decision on Friday appears to have fizzled out. The rally itself was formed on a questionable basis when you consider that the market surged despite the group increasing their production quotas, with the move seemingly due to a relief that a deal was reached after Iran had looked like they may not agree. 

Every week the US Commodity Futures Trading Commission provides us with an update of positioning changes across currencies, commodities and other financial instruments. While the prior releases did bring no huge shifts, the latest one did so sending first signals that the recent US dollar surge may come to an end relatively soon.

There’s some small gains seen in the crypto space today as the markets look to recover from the recent rout. The Reserve Bank of India has ordered domestic financial institutions to stop servicing the cryptocurrency exchanges starting from July 5. Most of the country’s exchanges announced that they are most likely to continue providing trading services to its customers but the spectrum of services may be limited.

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