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Economic Data is All Cock and Bull
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TheNegotiator, in General Trading
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By HFblogNews · Posted
Date: 24th May 2024. Market News – Erosion in Fed rate cut odds; Stocks, Oil & Gold under pressure Economic Indicators & Central Banks: Nvidia bigger than entire stock market – Market cap now greater than Australia, South Korea and Russia. After the massive Nvidia beat, rallying over 9% on the day, failed to reinvigorate the rally at the close. It was unable to support the major indexes. Wall street: The profit takers ruined the party, taking advantage of recent record highs to take some chips off the table. Erosion in Fed rate cut expectations provided extra incentive to sell. Strong US economic activity: Strong PMI, tight jobless claims, slump in Home sales and high home prices pushed Fed rate cut expectations further back. US jobs data released showed initial applications for unemployment were slightly lower than expected, indicating the economy was holding up despite high rates. The data, Fedspeak and the FOMC minutes, have cast doubt over whether officials will have enough evidence of the disinflation trend to begin cutting rates by September. It is an early close in bonds today and that could accelerate activity as traders position ahead of the long Memorial Day weekend. Asian & European Open: Asian equities dropped today, following Wall Street lower. Chinese officials announced an Rmb300bn ($42bn) lending package to help buy back real estate from the nation’s indebted property developers. Japan: Inflation slowed for the 2nd straight month in April, making it difficult for BOJ to proceed with further tightening. Inflation could pick up due to weaker Yen and rising Oil. BOE UK consumer confidence recovered while retail sales slumped. For the BoE that means there is less risk of a wage-price spiral as companies will increasingly struggle to pass on higher labor costs. More arguments in favor of an early rate cut then, despite recent data showing that headline inflation is not coming down as fast as hoped. Financial Markets Performance: The USDIndex found its footing, extending against G10 for a 5th day. Pound dropped after the UK Retail Sales, with GBPUSD at 1.2670. Oil declined after hitting its 3-month low as the market flashed signs of weakness ahead of the US summer driving season. Elsewhere, Gold remains weak at $2337, for a 3rd day. Market Trends: The Dow lost -1.5% to 39,065 with Boeing down over -7%. Live Nation dove as the DoJ filed suit to divest Ticketmaster. The S&P500 slumped -0.74% to 5267. And the NASDAQ declined -0.39%. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Andria Pichidi Market Analyst HMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission. -
By HFblogNews · Posted
Date: 23rd May 2024. NVIDIA Surpasses Earnings Expectations, Fed Considers Another Rate Hike. FOMC Meeting Minutes confirms certain members believe the current monetary policy may not be “adequately restrictive”. The US stock market depreciated after the Meeting Minutes. However, investors quickly bought shares after NVIDIA’s Quarterly Earnings Report. The US Stock Market on average rose 0.50% after the Meeting Minutes. NVIDIA’s Earnings Per Share rose from $5.16 to $6.12 and Revenue rose 15% in the first quarter of 2024. Yesterday the US Dollar Index rose up to 0.32% and shot upwards 0.15% in the 30-minutes after the Fed release. USA100 – NVIDIA’s Earnings Increase Sentiment And The NASDAQ To An All-Time High! On Wednesday, the NASDAQ spent most of the day witnessing intraday declines which gained momentum after the Fed Minutes. After the Federal Reserve Meeting Minutes, the NASDAQ was trading 0.69% lower and the SNP500 0.74% lower. The decline was a result of the ultra-hawkish comments within the Federal Open Market Committee regarding monetary policy and inflation. However, as the price fell to $18,619.54, the price thereafter surged more than 1.50% within the next 8-hours. The change in trend is a result of the positive Quarterly Earnings Report from NVIDIA. NVIDIA’s Earnings Per Share rose from $5.16 to $6.12 and Revenue rose 15% in the first quarter of 2024. Shareholders held onto their shares while buy orders rose triggering a much higher price. In addition to this, NVIDIA’s director’s speech expressed confidence in earnings and the upcoming quarters. NVIDIA’s management also compared their success to the industrial revolution. As a result, NVIDIA’s stock rose more than 6.00% after market close and is now trading above $1,000. In addition to this, the comments and earnings data had a positive effect on investor sentiment in the broader stock market, but particularly for semiconductors and chipmaking companies. For example, AMD’s stocks rose almost 2.00% and Applied Material Stocks rose 1.75% after NVIDIA’s earnings report. Due to the volatility the price of the index is obtaining primarily “buy” signals from indications and technical analysis in general. The price has also become “overbought” on the RSI on some timeframes but remains within a buy signal and not overbought on intraday timeframes. Though investors should note that the Fed’s Meeting Minutes does bear risk for the index. This will be expanded on below. EURUSD – The US Dollar Rises As Fed Members Play With The Thought Of Another Rate Hike! The EURUSD is trading within an upward facing corrective swing measuring 0.14%. The bullish price movement is currently only forming a retracement pattern as the EURUSD exchange rate has been trading within a bearish trend for 5 days but gained momentum yesterday due to the US Meeting Minutes. According to the Meeting Minutes, certain officials believe the policy requires a 25-basis points hike to achieve the 2% target. In addition to this, even the members which are known to be more dovish were troubled by the rise in inflation. Economists continue to believe the Federal Reserve is unlikely to increase rates despite the recent comments. There is a 49% possibility of a rate cut in September according to the CME FedWatch Tool. However, 13.00% of the market believe there will be no cuts at all in 2024. The hawkish comments regarding higher interest rates are positive for the US Dollar and have triggered various sell signals for the EURUSD. However, investors should also note that a hawkish Fed can also significantly pressure the stock market. Currently, economists are battling amongst each other over whether the higher earnings or the hawkish Fed will be the main price driver. Currently, the higher earnings data is winning, but this may not be the case if inflation does not decline this month. In terms of the Euro, the latest price driver is the European PMI data for Germany and France. German PMI beat expectations while French data saw a mixed reaction. Investors will now turn their attention to the US data later in this afternoon. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Michalis Efthymiou Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission. -
By Stocks4life · Posted
NUS Nu Skin stock bottom breakout watch, https://stockconsultant.com/?NUS -
By Stocks4life · Posted
LLY Lilly stock top of range breakout watch, https://stockconsultant.com/?LLY -
By Stocks4life · Posted
$GE stock at 160.53 support area, https://stockconsultant.com/?GE
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