After a 24% rally in their stock market from the start of July, the Shanghai Composite index saw a sharp reversal down 17% as data shows a patched recovery in China.
Bloomberg reporting industrial output was lower by 1.3% while retail sales plummeted 11.4%, showing strong weakness in the consumer, which use to be the backbone of many economies. Michelle Lam,...
EUR/USD locks in a 4th straight day of gains on tailwinds regarding European stimulus and vaccine tailwinds. The EUR/USD sits at around the 1.1428 level, hitting a healthy resistance level as bulls ride risk on optimism.
Euro reaping dividends from effective lockdown
Many European countries such as Italy, Spain, and Germany have had an effective lockdown,...
NASDAQ has posted weekly gains 11 of the 16 weeks since the lows of March. However, with the recent pullback in the midst of stocks like Tesla returning over 330% since its March lows, many skeptics reference 1999 as a benchmark for NASDAQ’s trajectory. However, are we going to see a repeat of 1999?
NASDAQ Then vs NASDAQ Now
The NASDAQ in 1999 was filled with...
Gold finally pushes past $1,800 as retail investors plow $40 Billion into gold-backed funds.
As Coronavirus cases around this world approach 12 Million, the prized metal has seen a 19% rise year to date as investors continue to crave safe havens. HSBC's James Steel stated that prices" were already rallying well before the emergence of Covid-19", which has given...
United States Non-Farm Payroll posts 4.8 Million jobs in June, beating analysts’ expectations of a 3 million gain. The unemployment rate also fell to 11.1% in June, forecasted at 12.5%.
However, permanent job losses spike
2.1 million of the 4.8 million new jobs were created in the leisure and hospitality sector. However, permanent job losses jumped to 588,000 to...
It has been a turbulent week for the markets and social stability. The markets extend their risk on rally during protests around the world for the death of George Floyd and a surprising 2.5m jobs that were created for non-farm employment. This is your week ahead.
All dates are in NZDT.
Japan’s GDP Annualized – Today, 8th June
Japan is an example of a nation...
The Euro sees its longest streak in 15 years on the back of Christine Lagarde, announcing that the ECB will provide an extra $1T in stimulus to combat the effects of the Coronavirus. The Euro against the USD has spiked to 1.127 to just under 1.135 on the back of extra stimulus. Pointing to inflation and price stability as concerns, Christine Lagarde stated a...
New Zealand has had no new Coronavirus cases in the past 13 days. America is about to top 105,000 cases. New Zealand went hard and fast. The United States Is barely squashing the curve. New Zealand is in the phase were politicians are arguing when to remove all restrictions. United States is reopening to save a dwindling election. A stark contrast in the...
The US Dollar index weakens for the 7th straight day as investors’ appetite for risk increases. The AUD/USD has broken the 0.69 mark, with the USD weaker against its G10 currencies, with global indices rising on forward optimism on a quicker recovery from the effects of the Coronavirus. US Indices have seemed to quickly discount the effects of the protests as they...
A couple of weeks ago, the decorrelation between Wall Street and Main Street was related to the Coronavirus’s impact on everyone. While Main street is still reeling from the devastation the Coronavirus has brought, current protests due to another incident involving a white policeman killing a black man have sparked outrage all over the country. Former Policeman...
Will Hong Kong abandon the peg against the USD? The financial hub of Asia, which connects the East to the West has been in the middle of pissing contest between the United States and China, not to mention their domestic struggle between them and China. If protests for autonomy in Hong Kong continue, and President Trump implements drastic foreign policy measures...
The European Commission wants to borrow €750B to help European Nations less capitalized.
This is on the back Germany and France’s proposal for a €500B fund intended to be given as grants to poorer nations such as Italy and Spain. Financial times estimate that Italy could be in line to get close to €82B The extra €250B was suggested by the European Commission in...
It is a firing start to the trading week as significant indices are in the green as risk on prevails. The SP500 reached a gain of 3%, breaching that psychological 3,000 mark. Although bears took some control near the end of the trading day, the sentiment was overall bullish.
I feel as though we have seen this repeatedly for the past 2 weeks. Restrictions on lock...
Week ahead: GDP and Inflation
It is a busy week ahead for the markets as the Coronavirus is still front and center. Oil is up 75% in the past month while tensions between the United States and China escelates. Traders and investors should take caution when entering into the markets this week..
As of today, the Coronavirus death toll stands at 343,116 as the...
Gold reached an all-time high earlier this week as it cleared the $1,750 level. It was able to reach bids at $1,765 before the US trading station started for the week. However, this rally was not sustainable as Risk on prevailed as Moderna reported positive data on early-stage coronavirus vaccine trial.
Gold retracted back down to $1,725 today as Risk on...
There is no other way than up? Fed funds rates turning negative, was another reason to be bullish on $Gold, with a crucial top at $1,747 as a target, which if breached, paves way for $1,800. Investors pricing in tensions and tarifs over 2020, could also help the bull cause.
With the FED futures funds rate expecting to be negative for 2021 and their open-ended QE program, we may see some US$ selling pressure as investors could sought after more risk-on safe havens, such as the JPY, CHF or AUD. The expectation for a growth decline is posing catastrophic numbers and with a recent positive correlation trend (negative date and positive...
Gold is back on the upside, trading at $1,710/oz after a 3 day losing streak as the US Dollar weakens. After hitting a peak at $1,731, gold lost some of its momentum, but is now looking to repeat its pattern from a few weeks ago. The yellow metal has been making sharp gains since the start of the month, rising to hit $1,725 before experiencing a short sell-off due...
