13 Jul

Two potential targets for WSt30m_index

By ForexTime 

  • WSt30_m index posted new 2023 intraday high on Wednesday
  • Markets cheered yesterday’s lower-than-expected US inflation data
  • JPMorgan and other big US banks to unofficially kick off US earnings season on Friday
  • WSt30_m bulls may next aim for 335374 and 36470, as long as risk-on sentiment holds

 

US stock markets cheered the US inflation data released yesterday (Wednesday, July 12th). The consumer price indexes out of the world’s largest economy came in below market expectations.

Such data has raised hopes that the Fed will soon call time on its rate hikes that began over a year ago, and the thought of peak US rates being close at hand was a cause for rejoicing for risk assets.

The WSt30_m index, which tracks the benchmark Dow Jones Industrial average index, joined in Wednesday’s party by posting its highest intraday price so far this year.

 

However, traders and investors will be bracing for another key event ahead.

Tomorrow (Friday, July 14th), the US earnings season will unofficially kick off with the latest quarterly financial results out of Wall Street banking titans, namely JPMorgan, Citigroup, and Wells Fargo.

Note that JPMorgan alone comprises almost 3% of the Dow Jones Industrial Average index (tracked by WSt30_m).

And the Dow index contains two banking heavyweights in the form of JPMorgan and also Goldman Sachs, which combined account for 9.1% of the benchmark index which tracks 30 industry leaders within the US economy.

With all that in mind, the WSt30_m index is set to be heavily influenced by how markets react to the latest earnings results out of JPMorgan and its peers over the coming days.

 

Looking at the price charts …

The WSt30_m index has been oscillating between a weekly support and resistance level since the beginning of June.

The battle between the bulls and bears has not been decided yet, but the bulls seem poised for a retest of the weekly resistance level that happened on 12 July.  

This possible scenario is confirmed by the fact that the price is above the 15 and 34 Simple Moving Average with the Momentum Oscillator adding its weight as well when it broke above the 100-base line into bullish terrain.

If the bulls can drive the price above the weekly resistance level and specifically a critical resistance that formed on 12 July at 34627, then two possible targets become possible from there.

 

Potential opportunities

Attaching the Fibonacci tool to the top 34627 and dragging it to a bottom that formed on 26 June at 33631, the following potential targets can be established:

  • Potential Target 1: 335374
    (situated just before a weekly resistance level at 35569).
  • Potential Target 2: 36470
    (just before another weekly resistance level at 36667)

If the support level at 33631 is broken, this scenario is no longer valid and must be reassessed.

As long as bulls can keep up the momentum with demand overcoming supply, the market outlook for the WSt30_m index on the Daily time frame should have bullish potential.

Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Financial News Stock Market News
13 Jul

Has Federal Reserve pulled off perfect soft landing? Investors plan moves

By George Prior

The US is now likely to pull off the perfect ‘soft landing’, with the world’s largest economy avoiding a recession as the latest inflation data comes in cooler than expected.

This is the bullish analysis of Nigel Green, the CEO and Founder of deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organizations, as the consumer price index (CPI) rose just 0.2% in June and was up 3% from a year ago, the lowest level since March 2021.

The deVere chief executive says: “The US CPI data raises hopes that the Federal Reserve is going to be able to bring down inflation without steering the US economy into a recession.

“There had been legitimate concerns that with the aggressive monetary policy to cool red-hot inflation, the central bank might overtighten and push the world’s largest economy into a deep and/or protracted recession.

“However, the battle on rising prices is being won, as the data suggests, meaning the pressure is off the Fed for future rate hikes.”

He continues: “Cooling inflation and a strong and resilient labour market suggests that no recession will come in 2023.

“We believe the Fed has pulled off the perfect soft landing.”

The markets appear to agree. On Wall Street, the S&P 500 and the Nasdaq closed at their highest levels since April 2022 following the US CPI release on Thursday.

With a recession likely to be avoided and a soft landing achieved, investors will be looking ahead to a period of potentially more stable economic growth.

They will be working with a financial adviser to consider rebalancing their portfolios to seize the opportunities that will be presented.

“Tech, especially areas such as software development, cloud computing, artificial intelligence, cybersecurity, and e-commerce, should do well,” says Nigel Green. “Investments in pharmaceuticals, biotech, medical devices, and healthcare facilities will also be appealing.

“During periods of economic stability, governments typically focus on infrastructure development. Therefore, investments in areas such as construction, transportation, energy, utilities, and telecomms infrastructure are likely to get a boost, as will the financial sector.”

The deVere CEO concludes: “We’re not out of the woods yet, but it is increasingly likely the US economy will not face a full-blown recession this year.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

Economics & Fundamentals Opinions
12 Jul

The cryptocurrency market digest (BTC, SOL). Overview for 12.07.2023

By RoboForex.com

The BTC quotes on Wednesday rose to 30,575 USD.

The flagship cryptocurrency has not yet used either seasonal cycles that favour a price increase or support from the US stock market. Investors seemingly save power for future purchases. However, the longer this pause drags on, the more chances there are for a price slump.

The resistance levels remain the same: 30,800 USD and 31,150 USD. The support level is still at 29,800 USD.

Today the market will keep an eye on the US inflation statistics for June. The decision of the US Federal Reserve on the interest rate at the meeting in July depends on these data.

The cryptocurrency market capitalisation has risen to 1.190 trillion USD. The BTC share has increased to 50.0%, while the ETH share remains at 19.0%.

New York State Attorney is searching out the FTX co-founder

New York State Attorney is looking into the whereabouts of the FTX cryptocurrency exchange co-founder. The reason is possible violations of the election campaign financing legislation in the US.

SOL might reverse upwards

The technical picture of the SOL token demonstrates a breakout of the short-term and the long-term resistance levels. The coin dropped to the low on 10 June this year. After that, the price entered an ascending channel, where it has stayed since. Market participants think that a bullish trend is forming there.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Cryptocurrencies Financial News
12 Jul

US CPI: Fed will raise rates this month despite cooler than expected inflation

By George Prior

The US Federal Reserve won’t be swayed and will raise interest rates this month despite inflation coming in cooler than expected, says the CEO and founder of one of the world’s largest independent financial advisory, asset management and fintech organizations.

Nigel Green of deVere Group’s warning comes as the latest US CPI comes in lighter than economists predicted.

He says: “Despite the data showing that the battle against inflation in the world’s largest economy is being won, we expect the Federal Reserve will resume its interest rate hiking agenda this month.

“The central banks’ officials will argue that there is still work to be done to tame inflation and they are unlikely to be dissuaded from their course of action for the time being.

“While we believe that the Fed will raise rates in July, there is now less justification for further hikes later this year.”

The deVere CEO is urging the US central bank not to raise interest rates past July.

“Investors are increasingly concerned that the Federal Reserve could with further hikes overtighten and that would steer the US economy into a major recession.

“The central bank must also ensure the broader picture is maintained and not be too cautious by overdoing the hikes, which would trigger the US recession deeper and longer.

“As the world’s largest economy, this would clearly have a serious, negative impact on the global economy.

“The most aggressive tightening campaign in decades is not quite finished – but the tide could be turning.

“Against this backdrop, a good fund manager will help you pick out the winners and losers to help you sidestep the risks to your wealth and seize the opportunities to build it for the long-term.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

Economics & Fundamentals Financial News
12 Jul

Mid-Week Technical Outlook: FX Majors & Indices

By ForexTime 

  • USD Index smashes into 101.50
  • EURUSD challenges fresh resistance
  • GBPUSD bulls switch into higher gear
  • SPX500_m approaches key resistance
  • NQ100_m ready to breakout?

The dollar extended losses while stocks nudged higher on Wednesday ahead of key US inflation data that could influence the Federal Reserve’s policy stance.

Attention will also be directed towards the pending Bank of Canada rate decision, speeches from numerous Fed officials, and big risk events including earning announcements by US banks on Friday.

In the meantime, here are some technical setups to keep an eye on this week:

USD Index smashes into 101.50

The dollar remains under pressure on the daily timeframe with prices trading marginally below 101.50 as of writing. Sustained weakness below this level may open a path toward 101.10 and 100.72, respectively. Should 101.50 prove to be reliable support, a rebound back toward 102.35 could be on the cards.

EURUSD tests fresh resistance

A weaker dollar has propelled the EURUSD to levels not seen since early May around 1.1032. Prices are firmly bullish on the daily charts with a breakout above 1.1032 opening a path towards 1.1090. Should bulls run out of steam, a decline back towards 10950 and 1.0900 may be on the table.

GBPUSD bulls back in town

The GBPUSD hit a fresh 2023 high this morning. Prices remain firmly bullish on the daily charts as there have been consistently higher highs and higher lows. A solid breakout and daily close above 1.3000 could open the doors towards 1.3110. Should 1.3000 prove to be strong resistance, prices may slip back towards 1.2840.

NZDUSD trapped within a range

It was a choppy affair for the NZDUSD after New Zealand’s central bank left interest rates unchanged for the first time in almost two years. The currency pair spiked towards 0.6240 before giving back gains. Prices remain trapped within a range with support around 0.6100 and resistance at 0.6240. A breakout above 0.6240 may see an incline towards 0.6310. Should prices slip back under 0.6100, we could see 0.6000.

USDJPY tumbles towards 138.80

A weaker dollar has sent the USDJPY tumbling toward the 138.80 support level. A breakdown below this point could see a further selloff towards 138.00 and the 200-day SMA around 137.10. Should prices rebound from 138.80, we could see 141.00 and higher.

SPX500_m approaches resistance

Prices remain bullish on the daily charts. A strong breakout above 4463 could inspire an incline towards 4500. Should bulls lack the strength to conquer 4463, prices may descend back within the range with 4332 acting as the next key level of interest.

NQ100_m breakout pending?

The NQ100_m could be gearing for a breakout on the daily charts if prices push beyond 15300. A solid close above this point may encourage an incline towards 15700. Any signs of weakness in the uptrend could see prices retest 14965 and 14670, respectively.

Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Financial News Forex and Currency News
12 Jul

Today the main focus of investors is on US inflation data

By JustMarkets

On Tuesday, stock indices closed higher, helped by growth in the energy and technology sectors. At yesterday’s close, the Dow Jones Index (US30) increased by 0.93%, while the S&P 500 Index (US500) added 0.67%. The NASDAQ Technology Index (US100) closed positive by 0.55%.

Today, the US will release inflation data for June. Inflation is expected to fall from 5.3% to 5.0% year-over-year. Core inflation (excluding food and energy prices) is also expected to fall from 4% to 3.1% year-over-year. Although the issue of a rate hike at the July meeting is almost settled, traders are expecting a softer stance from the US Fed after the data release. Several Fed officials said yesterday that the Fed is nearing the end of its rate hike cycle, which sparked a rally in risk assets this week while also sending the dollar lower.

Shares of 3M (MMM) jumped nearly 5% after Bank of America raised its rating on the industrial and consumer products maker to “neutral” from “downgrade.” Wall Street’s major banks will kick off the second-quarter reporting season on Friday. Banks are expected to report higher profits in the second quarter as higher interest payments offset a downturn in deal-making. That said, JPMorgan (JPM) could lead the sector’s growth. Jefferies upgraded JPM to “buy” from “hold,” noting the strength of its balance sheet and earnings potential.

Equity markets in Europe were mostly up yesterday. Germany’s DAX (DE30) rose by 0.75%, France’s CAC 40 (FR40) gained 1.07%, Spain’s IBEX 35 (ES35) added 0.81%, and the UK’s FTSE 100 (UK100) closed positive by 0.12%.

German inflation continues to rise. The consumer price level rose by 0.3% over the last month. In annualized terms, inflation rose from 6.1% to 6.4%. The ECB is likely to continue to hike until September, and then it will depend on new inflation and labor market data.

There are growing expectations that the oil market may tighten in the second half of the year, supported by signs of oil production cuts and Saudi Arabia’s recent pledge to cut production by 1 million barrels per day in July. These have contributed to the rise in oil prices in recent days. The US will also release crude oil inventories data for last week today, where a decline of 2.2 million barrels is expected.

Asian markets were trading higher on Tuesday. Japan’s Nikkei 225 (JP225) was up by 0.04% for the day yesterday, China’s FTSE China A50 (CHA50) added 0.56%, Hong Kong’s Hang Seng (HK50) increased by 0.97% for the day, and Australia’s S&P/ASX 200 (AU200) close positive by 1.50%.

The Chinese Communist Party-backed China Securities Journal reported on Wednesday that Beijing is likely to increase stimulus spending after a series of weak economic indicators in the country. Increased stimulus spending in China is expected to boost economic growth in the country, which in turn could boost oil demand amid rising domestic fuel consumption.

The Reserve Bank of New Zealand (RBNZ) left rates unchanged at 5.5% at its monetary policy meeting (MPC) today. Overall, the statement and minutes showed a dovish tone, raising the possibility that the RBNZ has ended the current tightening cycle, especially given the fact that the New Zealand economy is already in recession. The Reserve Bank said it expects core inflation to fall further from its peak and for core inflation to fall as capacity constraints ease. The Central Bank’s next monetary policy statement will be released on August 16.

S&P 500 (F) (US500) 4,409.53 +10.58 (+0.24%)

Dow Jones (US30) 33,944.40 +209.52 (+0.62%)

DAX (DE40)  15,673.16 +69.76 +(0.45%)

FTSE 100 (UK100) 7,273.79 +16.85 (+0.23%)

USD Index  101.75 −0.22 (−0.21%)

Important events for today:
  • – Japan Producer Price Index (m/m) at 02:50 (GMT+3);
  • – New Zealand RBNZ Interest Rate Decision at 05:00 (GMT+3);
  • – New Zealand RBNZ Rate Statement at 05:00 (GMT+3);
  • – Australia RBA Governor Lowe Speaks at 06:10 (GMT+3);
  • – UK BoE Financial Stability Report at 09:00 (GMT+3);
  • – UK BoE Gov Bailey Speaks at 11:00 (GMT+3);
  • – US Consumer Price Index (m/m) at 15:30 (GMT+3);
  • – US FOMC Member Kashkari Speaks at 16:45 (GMT+3);
  • – Canada BoC Interest Rate Decision at 17:00 (GMT+3);
  • – Canada BoC Monetary Policy Report at 17:00 (GMT+3);
  • – US Crude Oil Reserves (w/w) at 17:30 (GMT+3);
  • – Canada BoC Press Conference at 18:00 (GMT+3);
  • – US FOMC Member Mester Speaks at 23:00 (GMT+3).

By JustMarkets

 

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.

Economics & Fundamentals Financial News
11 Jul

Sweden is joining Nato: what that means for the alliance and the war in Ukraine

By Simon J Smith, Staffordshire University and Jordan Becker, United States Military Academy West Point 

In a surprise move, Turkey has ended its veto on Sweden joining Nato, thereby removing all the barriers to its membership of the military alliance.

Hungary quickly followed suit and, as a result of the two countries’ support, a consensus was able to be reached at the 2023 Nato summit in Vilnius, Lithuania. Turkish president Recep Tayyip Erdoğan agreeing to support Sweden’s bid to join will be touted as one of the key achievements of the summit.

Sweden submitted its formal application for membership in May 2022 alongside Finland, which was admitted into the alliance in April 2023.

Sweden, though not a formal member, has had a very close relationship with Nato for almost 30 years, since joining the alliance’s Partnership for Peace programme in 1994. It has contributed to Nato missions. And as a member of the European Union and contributor to the bloc’s common security and defence policy, it has also worked closely with the vast majority of European Nato allies.

In pursuing Nato membership, both Sweden and Finland have dramatically shifted their traditional policy of military non-alignment. A critical driver of this move was, clearly, Russia’s invasion of Ukraine in February 2022. It is also more evidence that Russian president Vladimir Putin has failed to achieve two of his own strategic objectives: weakening solidarity in the alliance and preventing further Nato enlargement towards Russia’s borders.

Finland and Sweden’s accession is of significant operational importance to how Nato defends allied territory against Russian aggression. Integrating these two nations on its north flank (the Atlantic and European Arctic) will help to solidify plans for defending its Ukraine-adjacent centre (from the Baltic Sea to the Alps). This will ensure that Russia has to contend with powerful and interoperable military forces across its entire western border.

Why Turkey lifted its veto

For a few years now, Turkey’s relationship with Nato has been nuanced and strained. Turkey’s objections to Sweden’s accession were ostensibly connected to its concerns over Sweden’s policy towards the Kurdistan Workers’ Party, or PKK.

Turkey has accused Sweden of hosting Kurdish militants. Nato has acknowledged this as a legitimate security concern and Sweden has made concessions as part of its journey towards Nato.

The main material driver of the agreement, however, may always have been a carrot being dangled by the US. American president Joe Biden now appears to be moving forward with plans to transfer F-16 fighter jets to Turkey – a deal that appears to have been unlocked by Erdoğan’s changed stance on Sweden. But it is often the case that a host of surrounding deals and suggestions of deals can help facilitate movement at Nato. Everyone, including Turkey, now seems able to sell the developments as a win to their constituents back home.

The ‘Nordic round’

Sweden’s accession means all Nordic nations are now part of Nato. As well as being significant in operational and military terms, this enlargement has major political, strategic and defence planning implications. Although Finland and Sweden have been “virtual allies” for years, their formal accession means some changes in practice.

Strategically, the two are now free to work seamlessly with the rest of the Nato allies to plan for collective defence. Integrating strategic plans is extremely valuable, particularly considering Finland’s massive border with Russia and Sweden’s possession of critical terrain like the Baltic Sea island of Gotland. This will increase strategic interoperability and coordination.

Nato allies also open their defence planning books to one another in unprecedented ways. Finland and Sweden will now undergo bilateral (with Nato’s international secretariat) and multilateral (with all allies) examinations as part of the Nato defence planning process. They will also contribute to the strategic decisions that undergird that process.

Their defence investments will also be scrutinised (and they will scrutinise the spending of other allies). Initial analysis suggests that while Finland and Sweden have lagged behind their Nordic neighbours’ increases in defence investment since 2014. Finland’s investment in defence leapt significantly leading up to and following its accession to Nato. While we may not know for months if the same is true of Sweden, we may expect similar increases on its part. Alliance norms and peer pressure are powerful.

The expansion of Nato to include Sweden is a major step for all these reasons. But while anyone watching the Vilnius summit will naturally now be asking whether the shift changes the situation for Ukraine’s membership aspirations, an answer is unlikely to be on the near horizon. Any final decision on Ukraine being offered a membership action plan for the time being is a bridge too far, especially in the current context of an ongoing war with an outcome that, as yet, is unpredictable.The Conversation

About the Author:

Simon J Smith, Associate Professor of Security and International Relations, Staffordshire University and Jordan Becker, Director, SOSH Research Lab Assistant Professor of International Affairs, United States Military Academy West Point

This article is republished from The Conversation under a Creative Commons license. Read the original article.

 

Economics & Fundamentals Opinions
11 Jul

Millionaires continue to pile into crypto: poll

By George Prior 

High net worth (HNW) investors have not lost any confidence in cryptocurrencies, despite the dismal so-called crypto winter of 2022, as the robust first half of year continues for the market.

85% of HNW clients have considered, or currently already are, investing in cryptocurrencies such as Bitcoin so far in 2023, according to a survey carried out by deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organizations.

The poll’s findings were up from 82% of the organisation’s HNW clients with between £1m and £5m of investable assets who sought advice on cryptocurrencies throughout 2022, as a whole.

Nigel Green, chief executive and founder of deVere Group, comments: “The half year crypto poll reveals that, despite the crypto market delivering its worst performance since 2018 last year, 2023 has seen a remarkable turnaround for digital currencies.

“This sustained market bounce is quite incredible considering just how dark the 2022 crypto market was, with a string of serious headline-grabbing events triggering a domino effect of financial losses that led to a shattering of investor confidence in cryptocurrencies.

“Last year’s price drops also came as investors reduced their exposure to risk-on assets, including stocks and crypto, due to heightened concerns about inflation and slower economic growth.”

Amongst other incidents, in May 2022, the TerraUSD and Luna stablecoins crashed, taking billions of dollars of investor equity down with it. The market was further rattled by the bankruptcy of crypto exchange FTX in November, which also wiped out billions of investor money. Allegations of financial wrongdoing were tabled against the firm’s leaders, including the company’s founder Sam Bankman-Fried.

“It really was about as bad as it could’ve been for the crypto market last year. And 2023 has, so, far been characterised by the US Securities and Exchange Commission (SEC) ramping up oversight in the digital asset space.

“The fact, then, Bitcoin has gained 80% already in 2023, putting it on track for its best annual performance since 2020, and that Ethereum prices are also up 52% so far this year, is truly impressive.”

The deVere CEO notes: “Against this backdrop of the so-called ‘crypto winter’, and the macroeconomic headwinds, HNWs are consistently seeking advice from their financial advisors about including digital currencies into their portfolios, or increasing their exposure to them.”

He added that despite the surveyed group being “typically more conservative,” he believes the interest stems from Bitcoin’s core values of being “digital, global, and borderless.”

The deVere Group CEO also notes the cryptocurrency market is now experiencing “upside momentum due to global cooling inflation trends which will improve the outlook for risk-on assets.”

Wealthy individuals are not the only ones who have continued their crypto interest and holdings over the last year. Institutional investors, namely Wall Street giants are also forging ahead into the space.

Nigel Green concludes: “If HNWs are continuing to express such huge interest in crypto, as market conditions steadily improve, they’re going to be amongst the first to capitalise on the anticipated continued price rises of the major digital currencies.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

Cryptocurrencies Opinions
11 Jul

Finalto signed with Your Bourse to distribute liquidity to their clients directly through the YB Platform

Finalto, the world-leading liquidity provider & prime of a prime broker, has signed with Your Bourse, a leading trade execution technology provider for the retail and institutional MT4/MT5 brokers, to offer Finalto liquidity directly to Your Bourse clients by distributing FIX Sessions from Your Bourse PaaS.

At the heart of Your Bourse’s offerings lies their flagship product, the Matching Engine. Connecting directly through Your Bourse allows Finalto’s clients to benefit from lightning-fast execution in under two microseconds per order. Furthermore, Your Bourse allows for the FIX session to be issued and configured in just a few minutes.

The clients will connect to Finalto via YB FIX API Server. Nonetheless, the clients who wish to connect their MT4 or MT5 directly can also do that using YB MT4 Bridge or MT5 Gateway.

As an integral part of this partnership, Finalto will seamlessly distribute its institutional liquidity directly to Your Bourse clients through Your Bourse Platform. Finalto’s liquidity will be effortlessly accessible to clients at their disposal, wholly integrated within the Your Bourse Platform. This fusion of flexibility in trade conditions, coupled with Finalto’s liquidity, promises an exceptional experience for the clients.

Paul Groves, UK B2B CEO at Finalto, said: “We have known the Your Bourse team for many years and seen the company grow and establish itself in a very competitive market. Finalto is always willing to work with partners who share the same beliefs in customer service, stable technology and fair pricing. We see the relationship with Your Bourse as important to our future plans and look forward in working together for years to come.”

Elina Pedersen, co-CEO and CRO of Your Bourse noted the importance of partnering with Finalto, which is a significant step for Your Bourse and its customers. «It is a huge advancement for both companies showcasing our unwavering pursuit of excellence and dedication to delivering distinctive services within the financial industry. I have worked with Finalto in the past as a client myself for many years, and it’s a true privilege for Finalto to become a client of ours. Finalto has always been one of the first choices for Your Bourse clients, and I am sure that the relationship will continue growing now that Finalto has become one of the Your Bourses clients and preferred partners».

Finalto is a market leader in global financial services. Finalto provides unrivalled liquidity and prime broker solutions, enabling to access over 800 instruments across: FX, Precious Metals, Base Metals, Single Stock CFDs, Index CFDs, Crypto Currencies and Energies through one cross-margined account, increasing the capital efficiency of your business.

Your Bourse’s suite of services includes MT5 gateway and MT4 bridge, multi-asset liquidity aggregation, risk management, client profiling, real-time and historical reporting, and MT4/MT5 hosting in all Equinix data centers with 99.999% SLA, as well as plug-ins for MT4 and MT5 and FIX API connections for B2B clients.

For more information on Your Bourse, please visit www.yourbourse.com

For more information on Finalto, please visit https://www.finalto.com/

Finance Press Release Financial News
11 Jul

Hedge funds increase positions to sell the dollar. China may resort to additional stimulation of the economy

By JustMarkets

At yesterday’s stock market close, the Dow Jones Index (US30) increased by 0.62%, while the S&P 500 Index (US500) added 0.24%. The NASDAQ Technology Index (US100) closed positive by 0.18% on Monday.

The US consumer credit growth slowed to a more than two-year low in May, reflecting the first decline in volume since the pandemic began. Total loans rose by $7.2 billion. This figure, which excludes inflation, was below all forecasts. While low unemployment and steady wage growth have allowed many consumers to continue spending, persistently high prices are forcing others to save.

Societe Generale’s top economist says Central Banks are at the “end of the road” in fighting inflation. A resilient labor market and the apparent strength of the economy mean the US Federal Reserve is likely to raise the interest rate by 0.25% in July. According to CME Group’s FedWatch tool, the market rates the probability of a rate hike at 90%. Nevertheless, hedge funds have shifted to an overall bearish bet on the dollar for the first time since March, believing the Federal Reserve is nearing the end of its interest rate hike cycle. Over the past week, credit investors opened a net short position in the US currency of 20,091 contracts. A week earlier, their long position totaled 5,196 contracts.

Equity markets in Europe were mostly up yesterday. Germany’s DAX (DE30) rose by 0.45%, France’s CAC 40 (FR40) gained 0.45%, Spain’s IBEX 35 (ES35) added 0.04%, and the UK’s FTSE 100 (UK100) closed up by 0.23%.

The UK government and the Bank of England “will do whatever is necessary, for as long as it takes” to bring inflation back to the 2% target, Treasury Secretary Jeremy Hunt said on Monday, reinforcing signs that interest rates will remain high for some time to come. UK inflation hit a 41-year high of 11.1% in October and is falling at a slower pace than in other major economies. Last month, the Bank of England unexpectedly raised its key interest rate by 0.5% to 5% after inflation held at 8.7% in May. Markets expect rates to peak at 6.25% or 6.5% later this year or early 2024.

On Sunday, French Central Bank governor François Villeroy de Galhau opposed a proposal to raise the European Central Bank’s inflation target to 2%. Villeroy, who sits on the ECB’s governing council, also said that interest rate hikes are close to the maximum and that rates will be held at elevated levels long enough for their impact on the economy to be felt.

Oil prices rose in Asian trading on Tuesday on the prospect of supply cuts by the world’s biggest oil producers, while expectations of expanded stimulus measures in major importer China also boosted sentiment. The prospect of supply cuts (Saudi Arabia and Russia have pledged to cut production further) is also bullish for oil prices. Nevertheless, caution over upcoming US inflation data and speeches from the Federal Reserve are holding back gains as markets want more information regarding the US Fed’s future trajectory.

Asian markets traded flat on Monday. Japan’s Nikkei 225 (JP225) decreased by 0.49% for the day yesterday, China’s FTSE China A50 (CHA50) added 0.70%, Hong Kong’s Hang Seng (HK50) was up by 0.89% for the day, and Australia’s S&P/ASX 200 (AU200) closed negative by 0.55%. Most Asian stocks rose sharply on Tuesday amid expectations that the Federal Reserve is close to ending its interest rate hike cycle for this year, while the prospect of additional stimulus measures from China also contributed to sentiment.

A string of weak economic data from China has caused bets to rise that Beijing will take additional stimulus measures to help support the slowing economic recovery. Inflation data on Monday showed that consumer spending is on the verge of deflation, sending mostly bearish signals for Asia’s largest economy. Shares in China’s big real estate developers rose on Tuesday after the People’s Bank said it would extend financial support for the sector until the end of 2024. But despite a slew of stimulus measures, China’s economy is still struggling to recover from COVID-era lows, and weak economic data over the past three months supports that view.

S&P 500 (F) (US500) 4,409.53 +10.58 (+0.24%)

Dow Jones (US30) 33,944.40 +209.52 (+0.62%)

DAX (DE40)  15,673.16 +69.76 +(0.45%)

FTSE 100 (UK100) 7,273.79 +16.85 (+0.23%)

USD Index  101.75 −0.22 (−0.21%)

Important events for today:
  • – Australia NAB Business Confidence (m/m) at 04:30 (GMT+3);
  • – UK Average Earnings Index (m/m) at 09:00 (GMT+3);
  • – UK Claimant Count Change (m/m) at 09:00 (GMT+3);
  • – UK Unemployment Rate (m/m) at 09:00 (GMT+3);
  • – German Consumer Price Index (m/m) at 09:00 (GMT+3);
  • – German ZEW Economic Sentiment (m/m) at 12:00 (GMT+3);
  • – Eurozone ZEW Economic Sentiment (m/m) at 12:00 (GMT+3);
  • – US FOMC Member Bullard Speaks at 16:00 (GMT+3).

By JustMarkets

 

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.

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