Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Equity futures were marginally lower in early morning trading on Thursday
Information is not investment advice
Ichimoku Kinko Hyo
USD/JPY: The USD/JPY pair is now testing the lower level of the Kumo. A decisive movement to the north will lead the exchange rate within the cloud and even higher. A failed attempt to move higher will push the market to test again the previous low.
European Market View
The S&P500 gained as much as 0.9% Wednesday amid a 3.8% jump in the energy sector, posting its biggest daily increase since Aug. 27. The blue-chip Dow Jones advanced more than 200 points, while the tech-heavy Nasdaq Composite rose 0.8%.
After seven straight months of gains for the S&P 500 and a near 20% rally to records this year, many on Wall Street expect bumpier trading and lower returns for the rest of the year. History is also not in the market’s favor as September tends to be a typically negative month for stocks. The S&P 500 has fallen 0.56% during the month on average since 1945, according to data from CFRA.
Equity futures were marginally lower in early morning trading on Thursday following a rebound on Wall Street as the market tried to avert the seasonally weak September.
Futures on the Dow Jones Industrial Average shed 29 points. S&P 500 futures and Nasdaq 100 futures traded in mildly negative territory.
Investors will want to monitor the latest jobless claims data on Thursday. Economists polled by Dow Jones expect a total of 320,000 filed for unemployment benefits in the week ended Sept.11, slightly up from 310,000 in the week prior.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.