All Articles Tagged - US500cash

US Open Note – US inflation hits fastest pace in four decades

Posted on February 10, 2022 at 2:27 pm GMT

CPI data come in ‘hot’; dollar surges US inflation for January has reached its highest level since February 1982, with the headline CPI rate coming hotter-than-expected at 7.5%. The core CPI measure rose to 6% from 5.5% y/y, while the m/m number came in at 0.6% compared to consensus estimates of 0.5%. The elevated readings could further increase bets for more aggressive interest rate hikes, inducing more volatility into the stock and bond markets. In the aftermath of the inflation data [..]

Will the stock market crash? Maybe not – Special Report

Posted on February 10, 2022 at 12:59 pm GMT

The threat of rising interest rates has returned to haunt stock markets. With the Fed going to war against inflation, traders are worried the era of easy money is coming to an end. As a result, volatility has gone through the roof and valuation multiples have compressed, decimating the most ‘bubbly’ pockets of the market. The turbulence is likely to continue, but with the economy still in good shape and buybacks going strong, this storm could ultimately be a gift [..]

Weekly Comment – US inflation and GDP data from the UK in the spotlight

Posted on February 4, 2022 at 3:02 pm GMT

The European Central Bank made a hawkish shift after inflation in the monetary union surged to 5.1% in January. President Christine Lagarde refused to rule out interest rate hikes for 2022, bolstering the euro. In the upcoming week, US inflation and preliminary GDP data from the UK will take center stage, together with speeches from the governors of the BoE and BoC. Highlights: In America, inflation data for January will hit the markets on Thursday, with pricing pressures expected to [..]

US Open Note – Euro remains afloat above 1.14 after impressive NFP data; oil fires up

Posted on February 4, 2022 at 3:01 pm GMT

Euro survives NFP surprise The euro had been dancing to the ECB’s hawkish beats on Friday until the US nonfarm payroll report came to put the brakes on its dynamic rally, but the common currency managed to remain afloat. Following a bitter contraction in ADP private employment figures, analysts believed that their forecasts for a 150k growth were too optimistic for the month of January. Yet, the government’s first monthly comprehensive employment stats of 2022 revealed that the US economy is [..]

Daily Market Comment – ECB flips the hawkish switch, US jobs coming up

Posted on February 4, 2022 at 9:36 am GMT

Nonfarm payrolls likely to disappoint, might even turn negative ECB opens door for rate hikes and faster taper, euro soars BoE raises rates, announces balance sheet reduction Weak payrolls unlikely to keep dollar down The latest US employment report will be in the spotlight today. Nonfarm payrolls are forecast to have risen by 150k in January, but market participants are probably positioned for a much weaker print by now. Nonfarm payrolls are calculated from survey data that is collected in [..]

US Open Note – Euro in lively bullish party after ECB; BoE fails to boost pound after rate hike

Posted on February 3, 2022 at 2:27 pm GMT

Bank of England hikes rates Abandoning its communication fiasco of late last year, the Bank of England (BoE) delivered its first back-to-back rate increase in almost two decades, lifting interest rates by 25 basis points to 0.50% as widely expected. Consistent with its guidance, the committee also judged that it should cease reinvesting the maturing government bond purchases of its portfolio in a gradual and predictable manner, reiterating that it would initiate the process of selling (quantitative tightening) once the [..]

Daily Market Comment – BoE and ECB decisions in the spotlight

Posted on February 3, 2022 at 9:58 am GMT

Bank of England to raise rates, pound will be driven by rate path European Central Bank could adopt a more optimistic tone Stock markets edge higher but Facebook shares tank BoE primed for action The Bank of England will most likely forge ahead with raising rates when it concludes its meeting today. Markets have fully priced in a quarter-point rate hike that would lift the Bank Rate to 0.5%, a level which policymakers previously indicated as the threshold to begin [..]

Daily Market Comment – Improving risk appetite keeps dollar on the defensive

Posted on February 2, 2022 at 10:03 am GMT

Furious recovery in equity markets continues Dollar retreats, sterling shines ahead of BoE Oil awaits OPEC, more earnings and data eyed Optimism returns Equity markets seem to have shaken off the blues that dominated trading in January. With the resilience in corporate earnings confirming the real economy is still in good shape, investors are coming around to the view that markets can live with higher interest rates even if that means more frequent bouts of volatility. Wall Street advanced for [..]

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 [..]

Daily Market Comment – Dollar rally takes a breather, stocks rescued by dip buyers

Posted on January 31, 2022 at 10:05 am GMT

Dollar takes a step back, awaits barrage of US economic data Stocks bounce back, yen retreats as nerves calm down Three major central bank meetings and tech earnings lie ahead Risk tone improves Market volatility has returned with a vengeance this month. A sharp repricing in the trajectory for interest rates has sent nervous investors scrambling to insulate their portfolios from any further damage, mostly by reducing leverage and moving higher along the quality spectrum. Money markets have fully priced [..]

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