Gold rallies before Powell congressional testimony [Video]
|China wants to grow 5% this year, create around 12 mio jobs in the urban area and print a 3% inflation. Targets are ambitious – especially the inflation target - given that the base effect will not play in favour of growth this year and deflation is not an easy battle to win. Caixin PMI printed an unexpected slowdown in the expansion of Chinese services in February, while Tesla tumbled 7% yesterday after announcing that its shipments from the Shanghai mega factory slumped to the lowest levels in a year due to a dull activity during the Lunar Year Holiday and renewed price competition in the EV market.
While Tesla was sliding a big 7%, Nvidia was busy traveling through uncharted territories. The company added another 3.50% yesterday and stole the title of the world’s ‘3rd biggest company’ from the Saudi Aramco. Apple fell free yesterday after the EU imposed a $2 billion penalty on accusations that Apple's platform unfairly marginalized competitors in the music-streaming industry, including Spotify. The S&P500 timidly advanced to a fresh record but closed the session slightly down; investors didn’t necessarily wanted to take a clear direction before Federal Reserve (Fed) Chair Jerome Powell’s semiannual testimony before the Congress on Wednesday and Thursday.
The US dollar index is stuck between its 100 and 200-DMA before Powell’s speech and a series of jobs data from the US this week. The EURUSD sees resistance into its 50-DMA, the USDJPY consolidates above 150, gold is on an impressive rally since last Friday on rising safe haven demand before Powell’s speech and US crude failed to extend gains above $80pb even after the Chinese stimulus bets.
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