- European equities snap 8-day rally
- US stock fell slightly from recent highs
- US PPI in line with market expectations
- Bitcoin and Ethereum both reached new record levels
- Tesla stock plunges 11%
European indices finished today's session lower, slightly below record highs as producer price data from the US offset upbeat economic data and solid quarterly results. Renault stock rose 3.4% after the car manufacturer announced that Nissan Motor would contribute EUR 157 million to its third-quarter revenue. Meanwhile, Carrefour advanced 1.4% after posting plans to increase its gross volume of merchandise in online commerce to EUR 10 billion by 2026., German pharmaceutical Bayer shared added 1.5% after company reported a rise in quarterly adjusted earnings above forecasts. On the data front, German investor confidence improved unexpectedly in November.
Also major Wall Street indices fell from record levels as investors took some profits after an October rally and awaited key inflation data ahead Wednesday. Today's PPI reading showed that producer prices rose 8.6% from a year ago in October, the most in 11 years and 0.6% from the previous month, in line with analysts' estimates. Meanwhile, tomorrow's CPI reading is expected to show US annual consumer inflation hit more than a decade high of 5.8%. Also, investors try to assess what a possible change in Fed's leadership would mean for current monetary policy after President Biden interviewed Fed Governor Lael Brainard, seen as more dovish, for the chair job. On the corporate front, GE stock jumped more than 6% after the company announced it will split into three public companies focusing on aviation, healthcare, and energy. Meanwhile Tesla shares fell more than 11% as investors are bracing for Musk's stock sale.
WTI crude futures rose more than 2.2% to above $83.85 a barrel on Tuesday, while Brent added 1.4% and was trading around $84.40 as traders awaited the EIA's short-term energy outlook, a key report that will be scrutinized by the US administration, which is mulling options to bring down prices of crude oil, before President Biden addresses the situation in a speech later this week. Finally, market expectations for both the API and the EIA weekly inventory change report see US crude oil stockpiles increase by 1.9 million barrels last week. Elsewhere, gold rose 0.35% and is trading near $1830, while silver is trading 0.9% lower around $24.20 amid muted dollar and declining treasury yields. The US benchmark 10Y yield has dipped below 1.43%, a level not seen since July 2021.
Meanwhile upbeat moods prevail on the cryptocurrency market, where Bitcoin hit fresh all-time high at $68,540, while Ethereum pulled back slightly from new record at $4840 level. Other altcoins widely followed the uptrend. Litecoin is one of the top performers during today’s session. Price of “digital silver” soared more than 20% and reached its highest level since May2021.
BITCOIN price extended yesterday gains and hit a new all-time high at $68,540 however later in the session bullish momentum faded away and price pulled back to previous record at $67,000. Should break lower occur, downward correction may deepen towards $63,425 level which coincides with 50 SMA ( green line) and 61.8% Fibonacci retracement of the last downward wave. Source: xStation5
