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US Open Note – Stocks to log a sharp monthly loss; Aussie picks up steam ahead of RBA

Posted on January 31, 2022 at 2:20 pm GMT

Stock indices consolidate January’s heavy losses; Eurozone bond yields spike January has been a rough month for global stock markets as more central banks prioritized their price objectives amid the inflation storm, with the Fed finally taking investors’ side and hinting at a faster pace of rate increases this year. Of course, US earnings releases have not demonstrated any panic so far even though companies keep facing supply constraints, but the reversal of easy-money policies in the near future is [..]

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US Open Note – Fed’s ‘hawkish’ tone sends the dollar surging

Posted on January 27, 2022 at 2:00 pm GMT

Powell signals a rate hike in March The first FOMC meeting of 2022 was concluded on Wednesday, with the Fed Chair Jerome Powell setting the stage for a March rate hike, declining to rule out more frequent and larger rate increases. Powell also struck a pessimistic tone regarding the recovery of supply chain disruptions, which are currently driving inflation. However, even if supply bottlenecks subside, the ongoing wage-price spiral could keep inflation elevated throughout 2022, keeping monetary tightening pressures high. [..]

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Technical Analysis – US 100 index’s decline halts but outlook remains bearish

Posted on January 26, 2022 at 10:05 am GMT

The US 100 stock index (cash) has been experiencing a major sell-off since the beginning of the year but recently the price managed to cease its dip at the 13,720 region.  Although the index has not yet managed to recoup a significant part of its losses, positive momentum seems to be strengthening. The momentum indicators are endorsing the cautiously positive near-term bias. The stochastic oscillator is sloping upwards after posting a bullish crossover, while the RSI  has managed to rebound from the [..]

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US Open Note – US stocks remain pressured amid rising geopolitical risks

Posted on January 24, 2022 at 1:51 pm GMT

Geopolitical tensions drive safe-haven demand Fears of an imminent Russian-Ukrainian conflict rattled the markets on Monday after both the US and the UK have reportedly started to withdraw families from their embassies in Kiev. The increasing geopolitical tensions are driving the current risk-off sentiment, sending investors to seek refuge into the safety of gold and US Treasury bonds, with the yield of the 10-year benchmark moving lower on Monday. Omicron weighs on Eurozone and UK growth Eurozone’s services flash PMI [..]

Daily Market Comment – Yen shines as stock market selloff deepens

Posted on January 21, 2022 at 9:59 am GMT

US stocks erase early gains to close negative, falling yields don’t help  Yen advances as risk aversion intensifies, oil succumbs to gloomy mood Dollar choppy, Netflix disappoints, US-Russia meeting in focus  Selling snowballs The stock market just can’t shake off the blues. Wall Street took another sharp hit yesterday as investors continued to unload riskier assets and rotate into safe havens to insulate their portfolios from any further downside.  All this mayhem started with worries around the Fed raising interest [..]

Daily Market Comment – Nasdaq enters correction territory

Posted on January 20, 2022 at 10:06 am GMT

Wall Street ends lower again but China rate cut calms nerves US yields pull back, knocking the wind out of the dollar  Gold hits two-month high, ECB minutes and Netflix earnings eyed Mood improves, slightly  It has been a stormy week for global financial markets, with riskier assets such as equities taking a beating at the hands of rising interest rates. The Nasdaq closed another session sharply lower to officially enter correction territory, which is defined as a drawdown of [..]

Daily Market Comment – Equities under fire, dollar shines as yields soar

Posted on January 19, 2022 at 9:45 am GMT

Stocks remain under pressure as traders position for Fed hikes Dollar outperforms, yen benefits from risk aversion, euro hammered Oil prices keep going, Canadian inflation stats in the spotlight All about the Fed Bets that the Fed will take a sledgehammer to crush inflationary pressures continue to escalate. More than four rate increases are now priced in for this year, which means traders have started to entertain the idea of either a fifth increase or a ‘double’ hike of 50 [..]

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Technical Analysis – US 100 extends decline as negative momentum intensifies

Posted on January 18, 2022 at 3:37 pm GMT

The US 100 stock index (cash) has been trending downwards in the short term since its long-term upside trajectory peaked at the all-time high of 16,767 in late November. Moreover, the price has crossed beneath the Ichimoku cloud, while its 50-day simple moving average (SMA) is ticking downwards, further reinforcing the index’s near-term bearish picture. The resumption of the short-term retreat is the most likely scenario as the momentum indicators depict that selling forces have taken control. The MACD histogram is found below both zero and its red signal line, while [..]

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AMD to post robust earnings amid tech stocks selloff – Stock Market News

Posted on January 18, 2022 at 2:30 pm GMT

Advanced Micro Devices (AMD) is set to unveil its financial results for the last quarter of 2021 on Tuesday, January 25, after Wall Street’s closing bell. The company is one of the leading and most innovative semiconductor designers in the world, thus its figures could also reflect to what extent the global long-lasting chip shortage issue has been resolved. Although earnings and revenue are expected to grow, the upcoming interest rate hike cycle by the Fed in 2022 seems to [..]

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US Open Note – Stocks retreat and dollar nudges higher as yields spike

Posted on January 18, 2022 at 2:19 pm GMT

Dollar and safe havens shine; loonie amongst the few winners The US dollar is storming higher today, heavily supported by surging Treasury yields, as markets seem to be pricing in four rate hikes by the Fed in 2022. Moreover, the significant losses observed in risky assets due to rising Treasury yields triggered a broader risk-off sentiment in the markets, adding more fuel to the dollar’s rally. In addition, the soaring risk aversion in today’s session favours safe haven currencies such as the Japanese Yen [..]

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