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Wall Street stages big late reversal

“The four most dangerous words in investing are: ‘this time it’s different.'” — Sir John Templeton

 

 

 

HEADLINES

 

 

 

  • Ukraine tensions lift dollar, send euro lower
  • Euro zone recovery stumbled in Jan as Omicron hit services -PMI
  • Oil falls 2% as Fed rate hike talk spooks risk markets
  • Gold gains as Ukraine tensions boost safe-haven appeal
  • Wall Street reverses, ends higher in late session rally
  • Meme stocks fall out of love as rate hike fears dampen speculation

 

 

 

FOREX

 

 

 

Ukraine tensions lift dollar, send euro lower

 

 

The dollar rose to a two-week high on Monday against a basket of currencies, lifted by rising geopolitical risk over Ukraine and a likely hawkish stance from the Federal Reserve at its policy meeting this week.

Markets until recently had mostly shrugged off the massing of Russian troops on Ukraine's borders, but tensions have ratcheted up lately. NATO said it was putting forces on standby and reinforcing eastern Europe with more ships and fighter jets, in what Russia denounced as an escalation of tensions.

 

 

Euro zone recovery stumbled in Jan as Omicron hit services -PMI

 

 

The euro zone economic recovery weakened this month, despite an upturn in Germany where factories benefited from an easing in supply chain bottlenecks, as renewed restrictions put a dent in the bloc's dominant services industry, a survey showed.

 

 

 

COMMODITIES

 

 

 

Oil falls 2% as Fed rate hike talk spooks risk markets

 

 

Oil prices fell about 2% on Monday, hit by investor concerns over the possibility of quicker than expected interest-rate hikes by the U.S. Federal Reserve that took down risk markets such as equities while the dollar rallied.

Wall Street stocks slumped, after last week posting their worst week since 2020, pulling down other risk assets like crude.

 

 

Gold gains as Ukraine tensions boost safe-haven appeal

 

 

Gold advanced on Monday as a selloff in Wall Street driven by geopolitical tensions over Ukraine bolstered its safe-haven appeal, while investors prepared for the Federal Reserve's rate hike decision.

 

 

 

STOCKS

 

 

 

Wall Street reverses, ends higher in late session rally

 

 

Wall Street bounced back from a steep sell-off late in the session to close higher on Monday, with bargain hunters pushing the indexes into positive territory by closing bell.

The S&P 500 earlier came close to confirming a correction by appearing on track to close more than 10% down from its most recent all-time high reached on Jan 3 as investors focused on concerns about an increasingly hawkish Federal Reserve and geopolitical tensions.

 

 

Meme stocks fall out of love as rate hike fears dampen speculation

 

 

Meme stocks GameStop Corp (GME.N) and AMC Entertainment (AMC.N) continued to fall out of favor for investors as fears of a faster rise in interest rates puncture the prospects of speculative trading.

After surging 600% last year amid a retail trading frenzy, GameStop fell 11% on Monday, extending a 28% slide from the start of 2022. Similarly, AMC has lost a third of its value so far this year following a more than 1,100% jump in 2021.

 

 

 

CHART

 

 

 

Nasdaq 100 – Weekly Candlesticks

Source: GKFX Prime Metatrader 4

NAS100 saw a huge daily and weekly reversal take place off the 50% retracement of the rally that went from August 2020 through to November 2021. - Prepared by Trading Writers*

 

 

 

CALENDAR

 

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar

 

SOURCE:

 

https://www.fxstreet.com/economic-calendar
https://www.reuters.com/business/finance/meme-stocks-fall-out-love-rate-hike-fears-dampen-speculation-2022-01-24/
https://www.reuters.com/business/energy/oil-prices-climb-1-fears-tighter-supply-2022-01-24/
https://www.reuters.com/markets/europe/gold-flat-ahead-fed-meeting-direction-rate-hikes-2022-01-24/
https://www.reuters.com/world/europe/euro-zone-recovery-stuttered-jan-omicron-hit-services-pmi-2022-01-24/
https://www.reuters.com/markets/europe/cryptocurrencies-pause-after-weekend-battering-other-currencies-wait-fed-2022-01-24/


 

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