On Tuesday Japanese Prime Minister Kishida mentioned "tax breaks" in outlining his stimulus package.This has reignited chatter in Japan that he is laying the groundwork for calling a snap election before the end of this year.If so it may well increase pressure on the...
Goldman Sachs have lowered their forecasts for GBP/USD, have a “tactically bearish view”
Goldman Sachs are expecting the Bank of England to remain on hold at coming meetings, through to Q4 2024, saying the BoE has completed its rate hiking cycle. GS say they hold a "tactically bearish view" on the pound, citing weaker growth, high inflation, and lower...
ING says oil prices above $100 / barrel not sustainable. Hit to demand, political pressure
In brief from an ING note on oil and the implications of the high price for central banks. Surging oil prices have become the new concern for central banks, aggravating the current trilemma: how to balance slowing economies, still too-high inflation and the delayed...
JP Morgan CEO Dimon is floating the risk of 7% rates: “worst case is 7% with stagflation”
JPMorgan Chase CEO Jamie Dimon was speaking in an interview with the Times of India. Dimon is in Mumbai attending a JPMorgan investor summit.“I am not sure if the world is prepared for 7%,” “I ask people in business, ‘Are you prepared for something like 7%?’ The worst...
Forexlive Americas FX news wrap: Bonds slump spills over into stocks, dollar firms
Markets:Gold down $15 to $1900US 10-year yields up 0.8 bps to 4.54%WTI crude oil up $0.92 to $90.59S&P 500 down 1.5% -- worst day since MarchUSD leads, CAD lagsOn Monday, US equities shrugged off rising yields but today it was payback time. Stocks slumped at the...
Oil – private survey of inventory shows a build vs. the small draw that was expected
This is from the privately surveyed oil stock data ahead of official government data tomorrow morning out of the US.--Expectations I had seen centred on:Headline crude -0.3mn barrelsDistillates -1.3 mn bblsGasoline -0.1 mn--This data point is from a...
US stocks close sharply lower
The major indices are closing sharply lower led by the S&P index and the NASDAQ index. The Dow Industrial Average had his worst day since March. The S&P and NASDAQ indices are down 5 and last 6 trading days.The closing levels are showing:Dow industrial average...
Economic calendar in Asia Wednesday, 27 September – BOJ minutes, Australian inflation data
After the big stock market(s) slump in US time on Tuesday its unlikely to be quite so dramatic a session here. The inflation data from Australia is the monthly result for August. The monthly data is not the official CPI rate, that's the quarterly data not due until...
Trade ideas thread – Wednesday, 27 September 2023
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...
NZDUSD moves toward 200 bar MA on the 4-hour chart.
NZDUSD moves toward the 200 bar moving averageThe NZDUSD is pushing back toward the lows for the day and in the process it is moving back toward the 200 bar MA on the 4-hour chart at 0.5933. Earlier in the European session, the price tested that moving average line...
Target says it will close nine stores due to theft
The US has a growing theft problem.Target highlighted growing 'organized theft' in its latest earnings call and now it's backing it up with actions. The retail giant will close nine stores:Three in the San Francisco bay areaThree in PortlandTwo in SeattleOne in New...
Prosperity at the expense of future generations
The U.S. economy has shown remarkable resilience: neither the coronavirus pandemic nor the energy crisis caused a recession like 2008, let alone the crash of 1929.Could the Fed have learned from past mistakes and put a definitive end to deep recessions and financial...
Stocks at the lows for the day and on pace for the worst month this year
US stocks are trading at new session lows and in the process on pace for the worst month for the year for the broader indices.The S&P index is now down 69 points or -0.59% at 4269. For the month the index is down -5.3%. That's the largest decline since December...
Schumer: We are very close to finishing work on a stopgap funding bill
Be careful with political headlines this week: Chuck Schumer is the Senate majority leader (a Democrat) but it's the House that needs to pass a bill.There is plenty of talk about a 4-12 week stopgap bill but it's not truly on the table until Republicans put it...
Two reasons why the selling in the Nasdaq could snowball
Earlier, I wrote about positive seasonal factors in Q4 helping US equities. Here's the other argument, which I think is more compelling.1) Put yourself in the shoes of a fund managerThe Nasdaq Composite is up 24.7% year-to-date and the S&P 500 is up 11%. If you're...
The Shiba Inu Crypto: Navigating Price Fluctuations for Optimal Trading Gains
In recent years, the world of cryptocurrency trading has witnessed the meteoric rise of Shiba Inu. This meme coin captured the imagination of investors worldwide; however, along with this exponential increase in popularity comes a high degree of price volatility. This...
The Psychology of Trading: How Emotions Impact Decision-Making
Starting out with trading can be very exciting and the prospect of making money from the market can be too captivating to ignore. However, whenever money is involved, emotions can easily come into play. Understanding the important role psychology plays in trading will...
Gold doesn’t like the sound of more Fed hikes, nears a one-month low
Gold dailyThere is a 'sell everything' flavour in markets today, with oil as a rare exception. The problem for markets is that Fed dove Neel Kashkari today said there was a 40% chance that the Fed hiking cycle won't be over this year and the possibility that rates...
USD makes new day highs vs the EUR, GBP, CHF and CAD
The USD is trading to new session highs verse the EUR, GBP, CHF, and CAD. The move comes as US yields reach to new highs for the day, and stocks reach new lows.2 year yield 5.18% +1.8 basis points5 year yield 4.632% +1.2 basis points10 year yield 4.560% +1.8 basis...
The S&P 500 has followed the seasonal patterns so far in 2023, so what about Q4?
We're closing out September with poor returns for equity markets. That shouldn't have been a big surprise if you follow the seasonals I posted in late August.In general, seasonals are more valuable than they're given credit for. They really shouldn't work in an...