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What’s the outlook for US stock indices? – Stock Market News

Posted on March 22, 2023 at 3:08 pm GMT

US stock markets have experienced major swings in 2023 especially after cracks appeared in the US banking sector, which were also evident in Europe. As a consequence, markets revised their projections concerning global interest rate levels to the downside, expecting that central banks will eventually back down in the face of a severe recession. Hence, the focus turns to the Fed’s policy decision on Wednesday, which will likely affect each index differently. Nasdaq smiles while Dow Jones cries After a [..]

Daily Market Comment – Fed set to raise rates, but will Powell signal a pause?

Posted on March 22, 2023 at 9:45 am GMT

With banking nerves calming down, Fed is set to raise interest rates today Market reaction will depend mostly on rate projections and Powell’s tone Sterling advances after hot inflation numbers telegraph BoE rate hike  Critical Fed decision ahead One of the most important Fed decisions in recent history lies ahead. With the banking turmoil receding for now, traders have priced in an 85% probability for a quarter-point rate increase and a 15% chance for no action at all. If the [..]

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Technical Analysis – US 500 index hovers around 200-day SMA

Posted on March 20, 2023 at 1:55 pm GMT

The US 500 stock index (cash) experienced a significant pullback after its advance got rejected at the 4,195 region. Even though the price bounced off the 3,812 zone and attempted a rebound, the 200-day simple moving average (SMA) has repeatedly curbed the upside. The short-term oscillators currently suggest that bearish forces are in control. Specifically, the RSI has flatlined below its 50-neutral mark, while the MACD histogram remains below both zero and its red signal line. What’s more, the US 500 index has respected [..]

Daily Market Comment – Banking turmoil keeps sentiment fragile; investors want the Fed to pivot

Posted on March 20, 2023 at 8:53 am GMT

Banking fears persist despite contingency plans Yen gains as equities and bond yields slide Fed is seen pausing and initiating rate cuts Gold skyrockets above $2,000, oil falls to 15-month low Flight to safety continues on banking contagion fears The US dollar underperformed against all the other major currencies on Friday, with the safe-haven yen taking the most advantage of its weakness. Although the dollar rebounded somewhat today, it remains on the back foot against its Japanese peer. Despite the [..]

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What does the US banking crisis mean for markets? – Special Report

Posted on March 14, 2023 at 3:32 pm GMT

Cracks have started to appear in the US financial system with the collapse of Silicon Valley Bank. Even though the Fed stepped in with a rescue plan, it wasn’t enough to calm nerves in markets. Instead, investors are betting this episode will force the Fed to stop tightening. Such speculation seems exaggerated, and if Fed officials push back against it next week, stock markets could resume their decline while the dollar storms higher.  Financial stress The collapse of Silicon Valley [..]

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Technical Analysis – US 500 index meets broken trendline

Posted on March 13, 2023 at 12:30 pm GMT

The US 500 futures (cash) came under renewed downside pressure last Friday as cracks in the US banking sector resurfaced, with the index drifting lower to mark a new one-month low at 3,845. The sharp decline squeezed the price below the 200-day simple moving average (SMA), which had been acting as support since the end of January, increasing fears that the sell-off may continue. While the negative trajectory in momentum indicators keeps the bias on the bearish side, the broken resistance [..]

Daily Market Comment – Dollar slides on Fed pause bets after SVB crisis

Posted on March 13, 2023 at 9:26 am GMT

Fed and US Treasury announce plans following SVB collapse Investors take a 50bps Fed hike off the table, see likelihood of pause US stock futures rally, dollar and Treasury yields extend slide SVB crisis and Fed’s response revive pivot bets The dollar fell against most of the other major currencies on Friday, accelerating its tumble at the start of this week. The initial round of selling was triggered by the US employment report, which despite pointing to another month of [..]

Is the risk/reward in US stock markets worth it? – Special Report

Posted on March 10, 2023 at 12:47 pm GMT

The new year got off to a solid start for US equity markets, with the tech-heavy Nasdaq leading the charge higher as fears of an imminent recession abated. Alas, this rally seems unsustainable. Valuations are still expensive, corporate earnings are contracting, and investors can now earn 5% returns in risk-free bonds instead of taking chances in riskier assets. That’s a dangerous mix for stocks.   Euphoria returns  Stock markets kicked off the new year with a bang. The Nasdaq has gained [..]

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What do higher US interest rates mean for the risk-linked currencies? – Special Report

Posted on March 10, 2023 at 11:15 am GMT

With expectations about the Fed’s future course of action changing radically lately, the commodity-linked or risk-sensitive currencies aussie, kiwi, and loonie have been under strong pressure. But why are those currencies suffering and how could they perform in the near future? What does commodity-linked currencies mean? Commodity currencies are the currencies of economies that are sensitive to changes in commodity prices and usually rely on commodity exports for growth. Among the major ones, the three that fit that description are [..]

Daily Market Comment – Investors hit the panic button ahead of nonfarm payrolls

Posted on March 10, 2023 at 10:22 am GMT

Dollar turns its sights to another decisive US employment report Yen slips as Bank of Japan refuses to tighten, gold tries to recover Stock markets fall sharply as financial contagion fears infect banks  Nonfarm payrolls, high stakes edition It has been a stormy week for financial markets, characterized by turmoil in interest rates and stocks. Some hawkish remarks by the Fed chief served as the trigger for this wave of volatility, after he warned that the ultimate level of interest [..]

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