Short Market Recap (21/02/24)
US Dollar:
US Dollar:
- Experienced a pullback due to profit-taking ahead of FOMC meeting minutes.
- Investors focused on late-January meeting insights and nuanced discussions from Fed members.
- Central bank's decision to maintain rates and concerns about inflation set the stage for potential market impact.
US Equity Market:
- Retreated, driven by Nvidia's disappointing financial results.
- Uncertainty prevails ahead of the FOMC meeting, with the Federal Reserve's tone potentially sparking volatility.
- Walmart's positive fourth-quarter results provided a counterbalance, limiting losses in the equity market.
Gold Market:
- Prices hover at $2025 amidst FOMC anticipation.
- Global investors await meeting minutes before committing to the gold market.
- Rising geopolitical tensions in the Middle East support safe-haven demand, while hawkish expectations from the Federal Reserve weigh on the appeal of dollar-denominated gold.
China's Economic Outlook and Antipodeans:
- China's unexpected rate cut boosts market sentiment.
- Largest cut in five years raises optimism for additional stimulus measures and economic growth.
- Antipodeans (New Zealand Dollar and Australian Dollar) benefit due to strong trade ties with China.
Crude Oil Market:
- Prices retreat due to a technical correction and geopolitical uncertainties.
- Failure to break above a strong resistance level contributes to the retreat.
- Unresolved ceasefire between Hamas and Israel and Chinese central bank's rate cut add to uncertainties.
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