Can Major US Indices Continue to Shine Amid Global Market Gloom?

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Market Overview Analysis by Ipek Ozkardeskaya covering: EUR/USD, GBP/USD, USD/JPY, AUD/USD. Read Ipek Ozkardeskaya's latest article on Investing.com

was slightly down on Friday, but the index posted its best weekly advance in a month on the back of a surprise easing in CPI figures and a not-too-hawkish Federal Reserve statement.fund for example continued to diverge negatively last week and fell around 3% over the course of the week as the negative divergence of the financials became more evident.

Stocks in Europe lost 3% during the course of last week as the French election jitters ended in tears for the Frenchwhich tumbled more than 6% compared to the previous Friday’s close. As a result, in only one week time, the French stocks lost all their 2024 gains, slipped below a major Fibonacci level – which is the 38.2% retracement on last October to this year rally, and are now in the bearish consolidation zone. And there is only more political turmoil ahead of us.

In this context, the US big technology companies don’t only offer a beautiful dream but also act as a safe haven to investors who don’t necessarily want to deal with the political and geopolitical tensions around the world. Thesuccessfully held ground at the major 38.2% Fibonacci support on ytd rebound, has brushed off the post-April weakness and looks ready to extend gains toward the upside.tanked below 1.0670 on Friday and is trying to hold on near the 1.

Else, the Reserve Bank of Australia will also give its latest policy verdict tomorrow and is expected to maintain the rates unchanged and keep its relatively cautious stance regarding inflation. Theremains in the positive trend, supported by a relatively hawkish RBA and the reflation inflows, but the bulls could rapidly get caught on the wrong side of the trade if we see a slide below the 0.6580 level.

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