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Technical Analysis – US 500 remains volatile; overall bearish outlook

Posted on March 2, 2022 at 2:42 pm GMT

The US 500 cash index has quickly bounced above its 9-month low at 4,106 touched last week. However, the elevated negative pressures are still troubling the index, which is currently trading well below its 50- and 200-day simple moving averages (SMAs), reflecting an overall bearish outlook. The short-term momentum indicators are painting a mixed picture as the RSI steady below its 50 neutral mark. On the country, the MACD is found below zero but above its red signal line, which [..]

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Can the metal and mining sector act as an inflation hedge in 2022? – Stock Market News

Posted on March 1, 2022 at 10:50 am GMT

Investors and stock markets are bracing for multiple rate hikes by the Fed in 2022 as an effort to tackle the persistently high inflation in the United States, which reached a four-decade high of 7.5% in January. Although the upcoming monetary tightening is anticipated to reduce inflationary pressures to some degree, supply-side inflation stemming from Covid-19-related disruptions and elevated energy prices could remain high. Therefore, with investors probably continuing to seek stocks with inflation hedging attributes, can the metal and mining sector [..]

Daily Market Comment – Western sanctions decimate the Russian economy

Posted on February 28, 2022 at 10:29 am GMT

America and Europe hit Russia with suffocating economic sanctions Russian central bank raises interest rates but cannot defend currency Stocks retreat, US dollar and oil advance as traders reduce risk Capital flees Russia The invasion of Ukraine has sent markets into a tailspin. Europe and America finally took off the gloves and announced a new round of crippling economic sanctions against Russia. These include the expulsion of several Russian banks from the SWIFT international payments system and freezing most of [..]

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US Open Note – Hopes for dialogue on Ukraine restore some risk appetite

Posted on February 25, 2022 at 2:33 pm GMT

Hopes for dialogue improve market sentiment After a devastating week, Russian-Ukrainian military clashes showed no signs of de-escalation on Friday, making an invasion of Kyiv inevitable in the coming days. Even though nothing is certain at this point, the fact that Ukraine’s Western allies prefer to play the sanction game with Moscow instead of sending NATO forces, is feeding some hopes that the worst-case scenario of a broader full-scale war could be prevented, especially if Ukraine president’s requests for dialogue [..]

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Weekly Comment – BoC and RBA policy decisions, alongside NFP report take center stage

Posted on February 25, 2022 at 1:11 pm GMT

The Russian invasion in Ukraine was the main market theme during the week, triggering risk-off sentiment as investors sought shelter in safe haven assets. In the upcoming week, the latest US employment report alongside central bank meetings in Canada and Australia will be in the spotlight, while a raft of economic data will also hit the markets. The highlights: In America, nonfarm payrolls figures will be out on Friday and will be closely eyed as a solid report might enable the Fed to proceed with a 50 basis points rate hike in [..]

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US Open Note – Stocks sink and commodities surge as Russia invades Ukraine

Posted on February 24, 2022 at 2:04 pm GMT

Russia attacks Ukraine; investors flee to safe havens The Russian President Vladimir Putin has ordered a full-scale invasion of Ukraine earlier today, moving troops and bombing several military targets across the country. According to Moscow, the move aims to demilitarize Ukraine, blaming the US and its allies for breaching a ‘red line’ by trying to further expand NATO eastwards in an attempt to pressure and blackmail Russia. Western powers have condemned the military assault, vowing to impose harsh economic sanctions. [..]

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US Open Note – Mild sanctions improve the risk-on sentiment for now

Posted on February 23, 2022 at 1:32 pm GMT

Geopolitical ‘drama’ dominates the markets The West has implemented a set of sanctions against Russia after President Putin recognized the independence of the two breakaway regions in Ukraine, moving ‘peacekeeping’ troops into the area. The advance was interpreted as the beginning of an invasion by global leaders, as Moscow stressed that the region considered independent is not limited to the area controlled by the separatists, but extends to areas currently controlled by Kiev. However, initial sanctions were perceived to be [..]

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Technical Analysis – US 500 index surrounded by bearish technicals

Posted on February 21, 2022 at 10:33 am GMT

The US 500 stock index (cash) faced a tough wall near its 20- and 200-day simple moving averages (SMAs) last week, which negatively crossed each other for the first time since March 2020, raising worries the pullback from the record high of 4,808 could gain extra legs. Structurally, the index sustains a neutral outlook as the latest sell-off has not successfully violated the key low of 4, 270 from September 30 despite the flash drop to 4,221 at the end of [..]

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Weekly Comment – RBNZ and PMI data eyed as geopolitical tensions remain ‘hot’

Posted on February 18, 2022 at 1:48 pm GMT

Geopolitical tensions in Eastern Europe seem to be driving the risk-off sentiment in global markets. Moreover, Fed minutes have dialed back bets for an aggressive 50 basis points interest rate hike in March, hurting the US dollar. In the upcoming week, interest rate decisions from New Zealand and a raft of PMI data from most major economies take center stage, together with the US PCE price index and BoE’s Governor testimony. Highlights: Flash PMI data for February in the Eurozone, UK and Japan [..]

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US Open Note – Risky assets rebound as market sentiment improves

Posted on February 18, 2022 at 1:42 pm GMT

Dollar holds steady despite easing tensions The geopolitical situation between Russia and Ukraine remains the key theme in today’s trading session, with the picture turning cautiously positive. Early in the day, the announcement of an upcoming meeting between the US Secretary of State Anthony Blinken and Russian Foreign Minister Sergey Lavrov triggered some optimism in the markets. Later, an official statement from the Ukrainian government that there is a very small and reduced likelihood of any major escalation further improved investor’s [..]

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