Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EUR/USD: remains strong despite recent sell off
Information is not investment advice
Fibonacci Levels
XAU/USD: Gold facing a further consolidation above 61.8% retracement area. Bulls have returned recently
Ichimoku Kinko Hyo
CAD/JPY: The pair is trading below the cloud. A downward pressure would lead the pair to exit further the cloud, confirming a bearish outlook.
US Market View
The Nasdaq was set to open at a record high on Thursday, boosted by shares of Tesla (NASDAQ:TSLA) and other top-shelf technology firms as data showing fewer weekly jobless claims pointed to a steady recovery in the labor market. Initial claims for state unemployment benefits fell 7,000 to 411,000 for the week ended June 19, the Labor Department said on Thursday, but were still higher than the 380,000 that economists had forecast.
A separate report from the Commerce Department on Thursday confirmed economic growth accelerated in the first quarter, thanks to the massive fiscal stimulus. Tesla Inc rose 2.8% after Chief Executive Officer Elon Musk said he would list SpaceX's space internet venture, Starlink, when its cash flow is reasonably predictable, adding that Tesla shareholders could get preference in investing. So far this week, the value index, which includes economy-linked energy, financial and industrial stocks, and its tech-heavy growth counterpart are both up almost 1.8% following the Federal Reserve's hawkish forecast from a week ago.
The S&P 500 growth index is up 3.9% so far in June and has gained 9.9% for the quarter, compared to the value index, which dropped 2.23% this month.
New orders for key U.S.-made capital goods unexpectedly fell in May, likely held back by shortages of some products, but a solid increase in shipments suggested business spending remained strong in the second quarter. Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, dipped 0.1% last month, the Commerce Department said on Thursday. These so-called core capital goods orders jumped 2.7% in April. Economists polled by Reuters had forecast core capital goods orders rising 0.6%. Orders increased 16.3% year-on-year in May.
-The Biden administration on Wednesday ordered a ban on U.S. imports of a key solar panel material from Chinese-based Hoshine Silicon Industry Co over forced labor allegations, two sources briefed on the matter said. The U.S. Commerce Department separately restricted exports to Hoshine, three other Chinese companies and the paramilitary Xinjiang Production and Construction Corps (XPCC), saying they were involved with the forced labor of Uyghurs and other Muslim minority groups in Xinjiang.
USA Key Point
- The S&P and NASDAQ open up at new record highs.
- Fed's Harker: US economy is largely in good shape.
- EURUSD building more value above swing area near 1.1920-25.
- Fed's Barkin: Price pressure will ease in Q4.
- GBPUSD trades above and below 100 hour MA after post BOE move lower.
- Belgian June business sentiment hits record high at +9.8 vs +6.5 prior
Similar
Brutal session in the equity markets yesterday
Ichimoku Kinko Hyo EUR/JPY: The EUR/JPY pair is now trading within the Kumo…
The U.S. economy added 390,000 jobs in May
Ichimoku Kinko Hyo USD/JPY: The USD/JPY pair is now trading above the Kumo…
Popular
European Currencies Ahead of the Banks' Statements
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.
Will the FOMC Surprise the Markets?
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.
What awaits the Oil Market in February?
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.
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