Chinese stocks have best day of 2021

“An investor should act as though he had a lifetime decision card with just twenty punches on it.” - Warren Buffett

 

 

HEADLINES

 

 

• Dollar slips further as oil rallies, commodity currencies gain
• Oil scores back-to-back gains as demand worries fade, fire causes Mexico production outage
• S&P 500, Nasdaq at Record Highs; House Makes Progress on $3.5T Budget
• Chinese stocks experience biggest 1-day rally of 2021
• ‘Extreme Greed’ for Bitcoin Falters at $50K
• S&P 500 Index: Race higher to take a break at the psychological 4500 level – Credit Suisse

 

 

FOREX

 

 

Dollar slips further as oil rallies, commodity currencies gain

 

The dollar eased further on Tuesday as risk-related currencies benefited from rising commodity prices and markets set aside concerns about the spread of the delta coronavirus variant to gauge data that showed a U.S. economy in strong recovery mode.

Risk appetite in global markets strengthened after the U.S. Food and Drug Administration on Monday granted full approval to the Covid-19 vaccine developed by Pfizer and BioNTech in a move that could accelerate U.S. inoculations.

 

 

COMMODITIES

 

 

Oil scores back-to-back gains as demand worries fade, fire causes Mexico production outage

 

Oil futures on Tuesday extended a recovery from last week’s rout to a second session, buoyed by signs the spread of the coronavirus delta variant may be abating in China. Also, a fire on an oil platform in Mexico knocked around a quarter of that nation’s daily crude output offline, contributing to oil’s gains.

 

 

STOCKS

 

 

S&P 500, Nasdaq at Record Highs; House Makes Progress on $3.5T Budget

 

The S&P 500 and Nasdaq closed at record highs Tuesday, supported by an climb in energy and consumer discretionary amid easing worries about a slowdown in the global recovery. Energy continued its bright start to the week, riding another surge in oil prices amid renewed hopes on the oil demand outlook as China begins to ease restrictions after curbing the Delta variant of Covid-19 outbreak.

 

Chinese stocks experience biggest 1-day rally of 2021

 

Stocks in China surged during Tuesday’s session, as investors moved to capitalise on recent market weakness within the world’s second largest economy. The Chinese stock market has been under pressure in recent weeks, with many of the country’s biggest companies experiencing huge selloffs, as a result of stiffening regulations. However on Tuesday, equities had their best day so far of the year, with the likes of Alibaba climbing by over 8%.

 

 

CRYPTO

 

 

‘Extreme Greed’ for Bitcoin Falters at $50K

 

Cryptocurrencies were mostly lower on Tuesday after a period of extreme bullish sentiment has started to wane. After breaking above $50,000 earlier this week for the first time in three months, bitcoin slipped below $48,000 at press time and is down about 3% over the past 24 hours. Technical charts suggest support is nearby, which could stabilize the pullback and maintain the breakout move above $45,000.

 

 

ANALYSIS

 

 

S&P 500 Index: Race higher to take a break at the psychological 4500 level – Credit Suisse

 

“The spotlight turns on trend resistance from April, today seen at 4493, just shy of the psychological 4500 level. Despite the strength yesterday our bias remains to look for a cap in this 4495/4500 zone at first for a fresh pullback.”

“A direct break of 4495/4500 can see resistance next at 4517/25. We do not see the market at the upper end of its ‘typical’ extreme though until it reaches 15% above its 200-day average, which is still some considerable distance away at 4624.”

 

 

CHART

 

 

US dollar / Canadian dollar – Daily Candlesticks

Source: GKFX Prime Metatrader 4

USD/CAD has just completed a 600 pip round trip in about 5 days, rallying from 1.26 to 1.29 and back again. The speed of the reversal suggests an eventual break below the rising trendline- Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/sp-500-index-race-higher-to-take-a-break-at-the-psychological-4500-level-credit-suisse-202108241304
https://www.fxstreet.com/news/chinese-stocks-experience-biggest-1-day-rally-of-2021-202108242004
https://www.investing.com/news/stock-market-news/sp-500-nasdaq-at-record-highs-house-makes-progress-on-35t-budget-2598568
https://www.marketwatch.com/story/oil-prices-build-on-rebound-as-demand-worries-fade-fire-causes-mexico-production-outage-https://www.coindesk.com/market-watch-extreme-greeed-results-in-bitcoin-price-slump