30 May, 2016
Federal Reserve Chairwoman Janet Yellen commented that a rate increase could be appropriate in the coming months if the economy and labour market were to continue to improve.
This is generally in line with market expectations as a series of positive US economic data have led a number of Fed governors to take a more hawkish stance towards a possible summer rate hike. The S&P 500 rose 0.4%, marking a weekly gain of 2.3%.
Noble Group CEO resigns
This morning, Noble Group has announced that its CEO Yusuf Alireza, in the position for four years, has resigned due to family reasons. The company will also sell the US energy marketing firm Noble Americas Energy solutions to raise cash to strengthen its balance sheet. The share price has plunged almost 40% from March, and a lot of bad news surrounding this company has been priced into the share price.
In the short term, market sentiment is likely to be affected. If a change of management could bring in structural reform going forward, however, then it is probably not bad news in the long term.
The Dollar Index climbed to 95.87 on Yellen’s statement that a rate hike could be appropriate in the months ahead. USD/JPY rose to the 110.70 area this morning, with immediate support and resistance levels at 111.00 and 108.30 respectively. EUR/USD has retraced to the 1.1100 area, testing the key support level again. AUD/USD has dropped to 0.7160, a fresh three-month low.
WTI Crude Oil prices retraced to $49.50 this morning. A few technical indicators have shown that a strong resistance level is found near the $50.00 area, as discussed earlier. The strong USD continued to suppress Gold and Silver prices. Gold has tumbled to $1,203, its lowest level in over three months. Silver has dropped to the $16.00 area, and the next support level could be found near $15.63.
The pound has continued to come under pressure in the past couple of days sinking to new 31 year lows around the 1.2800 level against the US dollar and multi-year lows against the yen and the euro as well...
After several days of decent gains European markets slid back yesterday as concerns about the impact of last month’s Brexit vote might have not only on the UK economy, but also the economy in Europe more broadly saw investors indulge in a spot of profit taking...
Last week proved to be quite a week for stock markets with the FTSE100 posting its best week since 2011, while the S&P500 also managed to post its best week this year...
Risk premium continues to unwind on hopes that central banks will adopt accommodative monetary policies amid Brexit uncertainties. Global equity markets rebounded for a second day, led by European markets...
Despite a late recovery from the lows last week, European markets had already looked as if they would open sharply lower this morning, after US markets rolled over and fell sharply into their close on Friday, with the S&P500 hitting a three month low...
European markets have plunged today, after UK voters caught complacent markets on the hop by deciding by 51.9 to 48.1 to leave the EU, in the process delivering a devastating verdict on a poisonous Brexit referendum campaign...
Sterling has soared to five-month high at 1.4810 ahead of the EU referendum today. Is the market over optimistic? The rally of risk assets over the past few days has also indicated that the market is trying to price in a remain vote.
While the opinion polls continue to remain mixed with respect to the UK referendum, equity markets appear to be sailing on serenely as we lead up to tomorrow’s vote, and we mercifully enter the final day of campaigning...
Despite hitting three month lows last week European stocks managed to stage a late recovery at the back end of last week, and though they did finish the week lower, the late momentum gained is set to translate into a strongly positive start to the new week...