by JustForex
The US stock market closed with a strong gain yesterday. The S&P 500 increased by 1.4%, the Dow Jones jumped by 1.76%, and the NASDAQ added 0.79%. All sectors of the economy closed in the green zone, with oil and gas, financials, and industrials leading the gains. Today investors are waiting for Federal Reserve Chairman Jerome Powell’s speech that may lead to increased volatility and a temporary decline in indices. Yesterday, the head of one of the most successful hedge funds, billionaire Ray Dalio, said “what kind of interest rate hike can we talk about if the country has a post-covid economy with huge unemployment, where a huge number of companies are not profitable and survive only thanks to simulation programs? A rate hike will lead to a huge number of bankruptcies and crowds of unemployed people”. In the medium term, investors will also keep a close eye on the US labor market, as its results strongly influence the Fed’s stance.
The European stock market follows the US market. On Monday, the head of ECB Christine Lagarde announced that more than 100 million people in the European Union had been vaccinated against COVID-19. The ECB officials expect that the second half of the year will accelerate economic growth in the eurozone. Analysts are confident that, considering the continued soft monetary policy in the EU, the euro and British pound will strengthen in the medium term.
Gold stopped falling. Yesterday, gold price increased by more than 1% to $1,788 a troy ounce. At the moment, prices for precious metals are at good mid-term buying points. Investors need to keep an eye on Treasury bond yields because of their inverse correlation to gold.
The oil uptrend continues. Summer is in full swing, and fuel demand is rising, so fundamentally, investors shouldn’t expect any significant declines in oil prices until the end of August.
Asian financial markets also rose on Monday. Japan’s Nikkei 225 added 2.1%, Australia’s ASX 200 jumped by 1.2%, and China’s CSI 300 increased by 0.6%. China’s financial regulators are urging companies to protect themselves against currency risks and have launched a training program on currency hedging for banks. But many companies are against this policy of the People’s Bank because, for small businesses, currency hedging instruments such as futures and options are too difficult to understand.
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Main market quotes:
S&P 500 (F) 4,224.79 +58.34 (+1.40%)
Dow Jones 33,876.97 -586.89 (+1.76%)
DAX 15,603.24 +155.20 (+1.00%)
FTSE 100 7,062.29 +44.82 (+0.64%)
USD Index 91.87 -0.36 (-0.39%)
- – US Existing Home Sales (m/m) at 17:00 (GMT+3);
- – US Fed Chair Jerome Powell testifies at 21:00 (GMT+3).
by JustForex
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
- Stock indices have hit all-time highs. The Australian labor market is starting to cool down May 16, 2024
- Target Thursdays: USDInd, Soybean & EU50 hit targets! May 16, 2024
- JPY has sharply strengthened May 16, 2024
- PBoC kept the interest rate unchanged. The US stock indices rise despite rising manufacturing inflation May 15, 2024
- Meme-stock mania: Will GameStop, AMC stocks surge even higher? May 15, 2024
- Euro climbs to five-week high ahead of US CPI data May 15, 2024
- Australia will release its annual budget today. Rising inflation expectations hurt US stock indices May 14, 2024
- JPY declines again May 14, 2024
- Trade of the Week: CHINAH to extend lead as Asia’s winner? May 13, 2024
- The German index has hit an all-time high. China sees rising consumer inflation May 13, 2024