European Open: Gold hones in on the June high
Gold remains a favoured safety play as headlines continue to pour in relating to the Russia-Ukraine crisis.
Share this:
Asian Indices:
- Australia's ASX 200 index fell by -72.3 points (-1%) and currently trades at 7,161.30
- Japan's Nikkei 225 index has fallen by -478.4 points (-1.78%) and currently trades at 26,432.47
- Hong Kong's Hang Seng index has fallen by -795.53 points (-3.29%) and currently trades at 23,374.54
- China's A50 Index has fallen by -308.65 points (-2.05%) and currently trades at 14,765.73
UK and Europe:
- UK's FTSE 100 futures are currently down -58.5 points (-0.79%), the cash market is currently estimated to open at 7,425.83
- Euro STOXX 50 futures are currently down -55 points (-1.38%), the cash market is currently estimated to open at 3,930.71
- Germany's DAX futures are currently down -228 points (-1.55%), the cash market is currently estimated to open at 14,503.12
US Futures:
- DJI futures are currently down -433 points (-1.27%)
- S&P 500 futures are currently down -299.25 points (-2.14%)
- Nasdaq 100 futures are currently down -65 points (-1.5%)
Russian troops have reportedly entered two of the breakaway regions in Eastern Ukraine, causing widespread outcry from global leaders and plans to impose sanction on Russia. Sentiment remains at the whim of Russian headlines today and likely the rest of the week.
It was another sea of red for equity markets overnight with the Hang Seng leading the declines. Gapping lower by around -% and continuing lower, the HSI is on track for a -3% loss during its worst session since September. US futures all point lower with Nasdaq E-mini futures contract currently off by around -2.2%. The FTSE is the only index we track which hasn’t fallen over -1% (yet).
FTSE 100 probes trend support
As the FTSE has been the least effected by the recent selloff of global equities, it may be an outperformer should sentiment magically turn around. We can see on the four-hour chart that it remains within a rising channel and has pulled back to the lower trendline. However, if bulls fail to regain control then we would look for a break beneath 7420 to signal its next leg lower, which would then see us target the lows around 7300 which is the base of a rising wedge pattern.
FTSE 350: Market Internals
FTSE 350: 4200.48 (-0.39%) 21 February 2022
- 57 (16.29%) stocks advanced and 284 (81.14%) declined
- 3 stocks rose to a new 52-week high, 40 fell to new lows
- 28.29% of stocks closed above their 200-day average
- 20.57% of stocks closed above their 50-day average
- 11.43% of stocks closed above their 20-day average
Outperformers:
- + 9.09% - Petershill Partners PLC (PHLL.L)
- + 6.32% - Jtc PLC (JTC.L)
- + 5.29% - Syncona Ltd (SYNCS.L)
Underperformers:
- -17.02% - Petropavlovsk PLC (POG.L)
- -8.47% - Polymetal International PLC (POLYP.L)
- -7.87% - TBC Bank Group PLC (TBCG.L)
Gold hones in on the November high
Perhaps not too surprisingly, gold remains the firm favourite with bulls at the moment. It remains in a strong uptrend on the one-hour chart and has formed a small triangle, which is generally accepted to be a trend continuation pattern. A zone of resistance around 1916 – 1918 makes a viable upside target and out bias remains bullish above 1900. But if prices break out of the triangle to the upside then we’d like to see the target hit before prices test the triangle low. As 1916 is the June high we suspect we might see some form of a shakeout around the highs.
Up Next (Times in GMT)
Once again, we’ll likely find that traders are paying closer attention to Russia-Ukraine headlines over economic data. That said, Germany’s IFO business sentiment report is scheduled for 09:00, with US Markit manufacturing PMI and consumer confidence at 14:45 and 15:00 respectively.
How to trade with City Index
You can easily trade with City Index by using these four easy steps:
- Open an account, or log in if you’re already a customer
• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
- Search for the company you want to trade in our award-winning platform
- Choose your position and size, and your stop and limit levels
- Place the trade
How to trade with FOREX.com
Follow these easy steps to start trading with FOREX.com today:
- Open a Forex.com account, or log in if you’re already a customer.
- Search for the pair you want to trade in our award-winning platform.
- Choose your position and size, and your stop and limit levels.
- Place the trade.
Related tags:
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
USD/CAD forecast: rally could accelerate above June highs at 1.4250
USD/CAD recovered quickly after weaker US jobs data, keeping the bullish trend in focus. A move above the June highs could accelerate the rally as inflation keeps the Fed under pressure.
Dow Jones Slide Shows What Rate Hike Bets Mean for Stocks
The Dow Jones support breakdown shows rising bond yields and rate hike bets hitting U.S. stocks while tech giants prop up the Nasdaq.
EUR/USD forecast remains tilted lower with French bond troubles ahead of US jobs report
The EUR/USD has tagged a fresh year-to-date low as French public-finance concerns trigger a government bond sell-off. Today's US jobs report may change little, with resilient activity, elevated energy prices and hawkish Fed bets keeping the greenback supported. With the pair trapped below resistance at 1.1410, the risk to the near-term EUR/USD forecast is tilted to the downside.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.