Markets Revive But Can They Survive Nonfarm Payrolls And U.S. CPI?
NAGA | Oct 05, 2022 04:22AM ET
The week has illustrated a strong “risk on” market so far with most assets in the medium and high risk category seeing an increase. This includes stocks, oil, and cryptocurrencies. However, most economists are voicing concerns about false hopes. According to economists, for the “risk on” sentiment to continue it would require inflation to show a strong decline next week.
Crude oil saw the strongest spike, increasing by over 3.60% throughout Tuesday. This is mainly in response to OPEC’s meeting taking place today and the breakout level which was broken on the 23rd September. The price is showing very little volatility this morning and has formed a slight retracement. The large increase in price and the resistance level likely have traders looking for further clarity and price drivers.
The price of the DAX was not only supported by the “risk on” sentiment which can be seen across the globe, but also from Germany’s latest fiscal policy support. The €200 billion package which has recently been announced is aimed at supporting businesses and consumers with energy costs.
However, the European Central Bank (ECB) is predicted to increase interest rates again as the Eurozone sees inflation increase above 10%. Another hike is likely to pressure the stock market.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.