Market Analysis
Markets remained highly volatile on Monday as investors reacted to fresh economic data and ongoing geopolitical concerns. The sharp moves across major assets were influenced by the latest tariff announcements, inflation figures, and key PMI releases.
Key Developments:
- Gold (XAU/USD): Gold surged past $2,900, driven by increasing geopolitical risks and the weakening U.S. dollar. The metal tested a key resistance level near $2,923, with further upside potential toward $2,950.
- U.S. Dollar Index (DXY): The dollar faced heavy selling pressure, breaking below key support levels amid weaker-than-expected ISM manufacturing data and a dovish outlook from the Fed.
- Nasdaq 100 (NDX): The tech-heavy Nasdaq fell sharply, losing over 1% as growth stocks faced renewed selling pressure. Nvidia led the declines, dropping more than 8%.
- Nvidia (NVDA): Nvidia’s stock price tumbled, testing key support around $110. A break below this level could trigger further downside toward $97.
- PMI Data (EUR, USD, GBP, CNY): Eurozone, German, and French PMI figures came in stronger than expected, providing temporary relief for the euro. Meanwhile, U.S. manufacturing data showed continued weakness, adding pressure on the dollar.
- Turkish CPI (YoY & MoM): Inflation in Turkey remained elevated, with a 39.05% YoY increase, slightly lower than the previous reading but still signaling persistent inflationary pressures.
Market Sentiment & Outlook
- The Atlanta Fed GDPNow model signaled weaker U.S. economic growth (-2.8%), raising concerns over the Fed’s next policy moves.
- Investors will be closely watching upcoming ECB and Fed statements for potential monetary policy shifts.
- With heightened volatility across asset classes, traders remain cautious ahead of key employment data releases later this week.
Markets are expected to stay highly reactive to new economic indicators and geopolitical developments. Risk management will be critical in navigating the uncertainty ahead.
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