Shares of the social media giant Twitter (NYSE: TWTR) surged another 6% on Monday after billionaire Elon Musk struck a deal to buy Twitter Inc for $44 billion cash on Monday. Under the deal, Twitter stockholders will receive $54.20 cash for each common stock. Twitter is set to report first-quarter earnings on Thursday. The firm will no longer hold a conference call, due to the pending transaction with Musk and the company.
“Twitter's board of directors carefully considered Elon Musk's offer, taking into account aspects such as value, certainty, and financial viability to execute the deal. The proposed transaction will provide a significant return for investors, which we believe is the best direction for the company's shareholders.” - Twitter Board Chairman Bret Taylor said.
US stocks slightly retreat from the previous session gains ahead of the earnings results from technology giants Alphabet and Microsoft. Asian shares traded mixed on Tuesday as the investors remain concerned about the covid fears in China as Beijing expands mass testing.
Crude oil prices remain undecided as to which way its next directional break will be. On Monday, the oil prices ended sharply lower driven by the expectations of faster Federal Reserve policy tightening and concerns about the impact of Covid lockdowns in China.
In the currency market, the dollar index, which gauges the greenback's strength against a basket of six currencies remains steady as Investors have been buying into the safe-haven currency as global market sentiment remains cautious.
Gold price stays below the $1900 psychological level ahead of US durable goods orders data. The overall momentum remains bearish from last week after the Fed Chair strongly implied that a half-point rate hike at its May meeting is not only on the table.
On the data front, Germany reported the latest IFO data. The data showed German Ifo Business Climate rose to 91.8, up from 90.8 and above the consensus of 88.3 points. German Business Expectations climbed to 91.8, above the forecast of 89.1.
Moving ahead today, the important events to watch:
US – Durable goods orders: GMT – 12.30
US – CB consumer confidence: GMT – 14.00
Worldwide, more than 509 million people have been confirmed infected and more than 6.20 million have died. The United States has confirmed over 80 million cases and has had more than 990,000 deaths from COVID-19, the highest total in the world.
Technical Outlook and Review
EURUSD: The currency pair struggling to find the upside momentum following the release of strong PMI data. The immediate support sitting around 1.0670 and 1.0640. On the other side, a break above 1.0720 will open 1.0740 and 1.0770.
The important levels to watch for today: Support- 1.0670 and 1.0640 Resistance- 1.0740 and 1.0770.
GOLD: The precious metal remains under pressure a clear breakdown of the support at $1890 could open space for further declines while only recovery to $1,940 would reverse the short-term negative trend.
The important levels to watch for today: Support- 1890 and 1878 Resistance- 1906 and 1912.
Quote of the day - "The longer you’re not taking action the more money you’re losing." – Carrie Wilkerson.