Things looked good to kick start the new week initially but come day end, equities had a stinker as US indices limped to the finish line. The jitters came about after a report on Apple planning to slow hiring and spending here. That was enough to spook investors and turned what was an optimistic start into a dour ending.
The S&P 500 closed down by 0.8% while the Nasdaq also closed lower by 0.8% and the Dow down by 0.7%. Easy come, easy go.
For now, market tones are calmer but as mentioned yesterday, it won’t take much to turn things around as there are still plenty of headwinds for risk sentiment at the moment.
„But as much as we are seeing risk optimism and the dollar losing some notable ground, best be wary that it might not take much for things to switch around. There are still risk headwinds in the form of recession fears and Europe still has a potential gas crisis looming.”
As for the dollar, it is off to a slow start this week but some key levels are holding with EUR/USD backing away from 1.0200 and GBP/USD away from 1.2000 for now.