- The Dow Jones dropped 0.35% and is the day’s worst performing US index. Other US indices hold onto their value.
- Apple is fined $1.8 Billion by the European Union for breaking App Store Rules! Apple Stocks decline by 1.37% before the market opens!
- Gold is close to reaching a 4-month high after rising a further 0.34% throughout the day. The CFTC’s latest report indicates sellers are terminating their “sell positions”.
US30 – EU Imposing Fine on Apple Applies Immense Intraday Pressure!
During this morning’s Asian and European sessions, the US30 consecutively declined in value and was trading 0.50% lower before the day’s market open. Since the opening of the US session the US30 is pushing upwards again but risks still remain. Even with the slight retracement the components within the Dow Jones still are mainly in the minus. In addition to this, the NASDAQ and SNP500 also trade lower. For this reason, within the market certain “sell” indications for the short term still remain.
Of the US30’s 30 stocks, only 7 are currently trading higher. 23 of the stocks are declining with Apple stocks witnessing the strongest decline. Apple stocks are currently trading -2.20% lower as investors sold shares due to a massive fine from the EU. The EU confirms its first antitrust penalty amounting to $1.8 billion for Apple! According to the report, this is due to the company preventing rival music streaming services such as Spotify from telling iPhone users that they could find cheaper ways to subscribe outside of Apple’s app store.
Another concern for investors is the 10-Year Bond Yields which are currently trading at 0.043% which makes it difficult for the cost of debt to fall. In addition to this, investors are also keeping note that the drive from earnings season and data potentially now can fade as time progresses. However, some positives do remain, such as newly added Amazon stocks which replaced Walgreen Boots. Amazon stocks today are increasing in value 0.40%. In addition to this, most earnings data from the latest QERs were generally positive. A key factor for this week will be data from the employment sector. This includes the JOLTS Job Openings and NFP Change. If the data remains resilient, the stock market potentially can benefit from higher investor sentiment.
When monitoring technical analysis, the price is trading at 49.20 and at the 75-Bar Exponential Moving Average. Both factors indicate neither buy nor sell. However, if the price breaks through the day’s low at $38,884.30, sell signals are likely to materialize.
XAUUSD – Investors Mitigate Away from Currencies as Rate Cuts Remain The Most Likely Outcome!
As the US trading session opens the price of Gold rises 0.40% within a short period of time and is at its highest price since December 4th. The price is now slightly higher than its point of collapse in April 2023 and December 2023. One of the most interesting developments for Gold “buyers” is the latest CFTC report. According to the report, more than twice the amount of buy positions were opened compared to sell positions.
Trading participants highlighted the decline in consumer sentiment during February, raising concerns about the potential initiation of a borrowing cost reduction program by the US Federal Reserve soon. The University of Michigan’s Consumer Confidence Index fell from 79.6 to 76.9 points, in line with neutral forecasts. Additionally, the Institute for Supply Management’s (ISM) Manufacturing PMI decreased from 49.1 to 47.8 points in February, below analysts’ expectations of 49.5 points.
Michalis Efthymiou
Market Analyst
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