Russian-Ukrainian conflict is influencing every economic aspect…
Nikkei's 225 Dropped, OPEC+ Is Eyed
- Stocks dropped at the start of the week as investors are worried over rising costs, supply-chain issues, and inflationary pressures as they can slow down the economic growth.
- Traders keep monitoring the debt worries of Evergrande. China’s company has already missed two bond interest payments in the past weeks.
- BioNTech, the Covid-19 vaccine maker, claimed that a new vaccine may be needed by mid-2022 to protect against the mutations of the virus.
- Merck developed a medicine that decreases the risk of death by nearly 50% in Covid patients. If it is authorized by US authorities, the drug can become the first oral antiviral medicine for Covid-19!
- Bad news for US stocks: voting on the bipartisan infrastructure bill was suspended. S&P 500 is trading below the 100-day moving average after closing the previous week in the red.
- News from Japan: Fumio Kishida becomes Japan's Prime Minister. USD/JPY is moving sideways near 111.00. Nikkei (JP225) has sharply dropped below 28,500.
- OPEC+ members will meet today to discuss oil production cuts amid increased fuel prices, especially those of natural gas.
Gold is trying to recover the losses. On the weekly chart, it is moving sideways near the 100-week moving average just below $1760. On the 4-chart, we see that gold has reversed down from the 100-period moving average of $1765 and edging lower to the 50-period MA of $1750, where the metal should stop falling. The breakout below this support level will open the doors to the low of September 23 at $1740. Resistance levels are the 100-period MA of $1765 and the high of September 22 at $1780.
Here is a very strong movement in the JP 225 chart. The Japan index has massively dropped to the 50-week moving average of 28,200, which may stop the index from falling further. If it manages to close below this support level, it will drop to 27,650 – the lows of late August.
Last week was full of surprises! The US dollar plunged despite a better-than-expected retail sales report…
Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
The US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.