Market Overview - Page 50

The gold price has resumed updating its all-time highs on the back of speculations around lower rates.

The US indices are under pressure and in a bearish market regime, with the S&P500 and Nasdaq100 closing below their 200-day MA. The sentiment index is at extreme fear levels, but it is uncertain when the bottom will be reached.

The US CPI slowdown provides a good reason to cut rates, reinforcing the doves' position at the central bank, and potentially bringing a key rate cut closer. The market's focus is on the upcoming Fed meeting on 19 March for signals of the next rate cut.

The US labour market is showing stagnation despite an increase in job numbers, as hours worked per week and small business optimism decline. Uncertainty is impacting equity markets and the weakening dollar.

Gold may fly to the new heights but there are risks following the stock indices.

S&P500 and Nasdaq100, dipped but found support at their 200-day MA, indicating a possible shift in stock market trends.

The US dollar has been actively declining since early February and intensified the decline at the start of this month.

The crypto market experienced a recovery but remains cautious. A test of the support level at $3.14 trillion is upcoming, and the market sentiment is still in extreme fear territory. Bitcoin gaining but needs to break the 50-day MA for bullish confirmation.

Crude oil prices are dropping, nearing the lows of the past four years, as concerns over a global economic slowdown and OPEC's plan to increase production.

Market Picture Pressure in traditional markets has clipped the wings of the crypto market, which is almost back to the point from which Sunday’s rally started. At the start of the day on Tuesday, it was capitalised at $2.76 trillion,.

Although Eurozone CPI went above expectations, it allows the ECB to consider a rate cut. The stable inflation rate and weak domestic demand support more policy easing.

The US PCE Price Index met expectations, indicating potential easing by the Fed later in the year. Personal disposable income increased while spending fell. This is negative for the dollar but positive for stocks and crypto.