It was certainly another eventful week for financial markets.
Global stocks held near record highs on Monday as investors looked ahead to a week dominated by key economic data and quarterly earnings from tech giants.
We covered various technical outlooks throughout the week with Gold snatching our attention on Monday. Despite the choppy price action seen during the second half of April, Gold is on route to concluding the month over 3.4% higher. Given the conflicting forces pulling and tugging at the precious metal, the next few weeks could be volatile.
Our focus shifted to Tesla after its first-quarter earnings smashed expectations. We questioned whether Tesla shareholders were becoming an insatiable bunch after shares of the electric vehicle car maker fell as much as 3.1% in after-hours trading.
On Tuesday, European stocks opened higher after US markets eked out fresh record highs overnight. The overall mood across markets turned mixed as investors adopted a cautious stance ahead of the Federal Reserve meeting.
We decided to cover commodity currencies after the Canadian Dollar, New Zealand Dollar, and Australian Dollar appreciated against major peers in the G10 group.
Remember how we highlighted how the USDCAD was screaming bearish? Well, prices eventually cut through the 1.2400 support like a hot knife through butter.
As the Fed meeting and President Joe Biden’s spending plans loomed, market sentiment turned mixed with investors on the defense.
Our stock of the week was Facebook which released its first-quarter earnings after US markets closed on Wednesday. The social giant beat on both earnings and revenue in Q1 with shares gaining almost 8% this week. Apple also reported an insanely great quarter with profts and revenues crushing expectations. The same story was for Microsoft and Google.
After being punished by a dovish Federal Reserve, the dollar nursed its wounds on Thursday. In our technical outlook, we highlighted how the Dollar Index was under pressure on the daily, weekly and monthly charts. However, the Dollar sprung a surprise on Friday afternoon by aggressively appreciating across the board.
Looking at the technical picture, a solid daily close above 91.31 could open the doors towards 91.80.
Confidence over the US economy boosted by the GDP report which showed growth expanding at a 6.4% annualised rate in the first quarter of 2021.
Risk-on was the name near the end of the week with the S&P 500 logging fresh record highs on Thursday. Interestingly, U.S. stocks lost ground on Friday but posted monthly gains thanks to a string of robust earnings. The S&P 500 has gained 5.24% in April, its biggest monthly rise since November 2020.
April was a month defined by improving economic data from developed economies, earnings and worsening Covid-19 cases across the world. As head into the new month, the risk pendulum is bound to swing back and forth as investors juggle with these themes.
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