Global equity markets drop sharply

6 February, 2018

Global markets were having  a case of the Monday blues today as they tumbled sharply on the back of fears around global economic growth and a potential slowdown. There has been talk for some time about the threat of a global slowdown, but also an increase in interest rates flowing into the market. At present this is mixing together to cause markets to stress heavily and of course equity markets are the first to fall as a result. The big mover for me today was of course the S&P 500 which I've been bullish on for some time, but as a result of the movements today the certainty has all but evaporated in a hurry. The Trump effect looks like it may need to shine a little stronger to help hold back the tide of equity markets.

On the charts the S&P 500 plummeted today and was only stopped after hitting the 100 day moving average in an aggressive move which can almost be described as a crash. However, I hesitate to call it that and add that it did the same thing in 2011 before recovering, so the horse has not yet bolted for a full on bear market. If the market is set to continue in a bearish trend then the 100 day moving average will be lucky to hold this back tomorrow, and the 200 day moving average could become the line in the sand. Support levels can be found at 2628 and 2564 on the charts. If the market did jump higher, then 2698 and 2743 could be key resistance levels the market could target when it comes to profit taking on the volatility. Overall though this sort of volatility is where traders can make and break fortunes quickly, as the market can quickly swing violently and rapidly without warning.

Previously with any large bearish movements we have seen gold swing back into the picture as traders look to hedge on movements like this. As a result of all the movements I am surprised to see that movements thus far have been far from what you'd expect. Which indicates to me that markets are not entirely convinced that this is anything to get to worried about already.  But gold is one of the major markets to watch in any event when volatility becomes a serious worry for markets.

Gold on the charts is looking somewhat impressive as markets have been bullish about it today, bouncing near support at 1326 to lift higher above the current support level of 1336. A positive open could see it extend higher to 1349 and 1357 in these current market conditions. Expectations will be high that we could see traders move across if the futures market for equity contracts continues to come under pressure.

Source link  
Oil slips further ahead of OPEC meeting

Oil markets have suffered another blow today as US oil inventories showed an increase of 2.07M barrels (-2.1M exp), while at the same time US gasoline...

Trade war fears to dominate market

After imposing tariffs on steel and aluminum imports on its closest allies, the U.S. will be facing enormous criticism at the G7 summit on Friday in Quebec...

USD in focus ahead of Non-farm

The USD will be in focus tomorrow as it's a key test of strength with the upcoming non-farm payroll data on the US economy. So far the markets...

Italy's risk contained; Trade war not on hold

Investor fears over Italy's political turmoil eased on Wednesday, leading to a sharp recovery in Italian assets, the Euro and global equities. Investor confidence that...

Key events to watch this week

After falling to a six-and-a-half month low against the dollar on Friday, the Euro bounced back early Monday following the Italian president's blocking...

Dollar hits new 2018 high after FOMC

While the financial markets continue to remain volatile with a number of different news events being monitored, the USD did manage to hit another...

Euro shakes off political risk

The Euro strengthened slightly early Thursday, to trade at 1.1837 after hitting a new five-month low of 1.1761 the previous day. It seems that the single...

Risk aversion returns on higher yields

U.S. consumers are becoming more confident to spend. U.S. retail sales increased 0.3% in April, and March figures were revised up to 0.8% from 0.6%. When...

U.K. jobs under the radar

Stocks in Asia were uninspired by the slight gains on Wall Street during Monday trading. Although the easing of U.S.- China trade tensions was...

In the past 24 hours Bitcoin has gained 0.69% and reached $6788.81. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -1.7729% and is now at $1.1587. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 13.44% and is now at $537.328. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Forex Market Analysis

Forex Currencies Forecasts

Top 10 Forex Brokers 2018

# Broker Review
4FIBO GroupFIBO Group80%
9FP MarketsFP Markets70%