Asian stock markets finished Monday’s session in the red as investors digested mixed economic signals out of China, where retail sales plunged 3.5%, more than expected, while the GDP expanded 4.8% in the first quarter versus 4.4% expected. Equities were also pressured by persistent geopolitical worries as tensions between Russia and Ukraine continued to escalate over the weekend.
While most of Europe remained closed for the Easter holiday, US stock index futures fell on Monday, with tech stocks leading the way lower amid the ongoing rally in the US Treasury yields. In turn, rising yields in combination with risk-off sentiment in the global financial markets pushed the USD index from the 100.00 handle to the two-year high of 100.76 registered last week. The buck has retreated marginally from the peaks in recent muted trading but stays elevated, signaling its readiness to challenge the 101.00 barrier after some consolidation.
Elsewhere, gold prices surged to Mar. 11 highs just below the $2,000 mark due to the risk-off trends dominating the markets these days. In the immediate term, the XAU/USD pair could see a short-lived bearish correction from the psychological level as investors may opt to take some profit before pushing the yellow metal back to all-time highs around $2,070 in the coming weeks or even days.
In other markets, the Bitcoin price dived below the $40,000 figure, suffering losses along with traditional financial markets. The BTC/USD pair slipped to fresh mid-March lows around $38,500 before bouncing back above $39,000 in recent trading. However, it’s too early to call a bottom at this stage as the selling pressure persists and could intensify at any moment. As long as the coin stays below the $43,000 mark, where the 20-DMA lies, downside risks persist in the short term.