FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
90%
HFM information and reviews
HFM
89%

Global stocks turbocharged by hopes


21 June 2019

Global equity bulls are continuing their unstoppable momentum into the conclusion of the trading week, as well-orchestrated, cautious remarks from a chorus of central bank heavyweights fuel speculation that a new era of monetary policy easing to counter decelerating global growth is on the menu.

Major central banks including the European Central Bank (ECB), Federal Reserve (FED), Bank of England (BoE) and Bank of Japan (BoJ) have all signalled a willingness to ease policy if needed, consequently reviving risk sentiment among investors.

The smoky atmosphere clouding the global outlook of unpredictable external risks has persistently weighed on the world economic outlook, meaning that the prospect of central banks coming to the rescue has provided the hero to this story that investors want to see.

Although Asian shares saw some mild profit taking on Friday morning, they are still en route to posting their best weekly gains since January. The real winner from the Fed’s dovish statement and return of risk appetite is the S&P 500, which has set a new record high of 2954.18.

While the stock market rally is commendable, the pressing question on the minds of many investors is whether this momentum is sustainable. Where global stocks trade during the third quarter of 2019 will be highly dependent on US-China trade developments and whether major central banks actually move forward with easing monetary policy. Should trade tensions remain a major theme and central banks hold back from easing, equity markets could find themselves exposed to downside shocks.

Gold leaps past $1400 on Dollar weakness and geopolitics


It has been an incredibly bullish trading week for Gold which has blasted past the $1400 level for the first time since 2013.

The combination of Dollar weakness, speculation over lower US interest rates and geopolitical tensions have encouraged investors to sprint to the hills and pick up Gold in their portfolio.

With major central banks signalling potential rate cuts in the future, Gold is set to push higher, especially when considering how the precious metal performs well in low interest rate environments. Looking at the technical picture, Gold has already hit $1400 on the daily charts. A weekly close above this level is seen encouraging a move towards $1413.

Commodity spotlight – Oil


Oil markets were turbocharged by geopolitical tensions this week with Brent rushing past $64, its highest level since May.

While geopolitical tensions appear to be doing OPEC+ a favour by supporting Oil prices, the question is - for how long?

The OPEC+ alliance appears set to extend its supply cuts into the second half of 2019, as producers look to build a more sustainable floor under Oil prices and rebalance global markets. Despite pushing higher on the back of geopolitical tensions, Oil prices remain exposed to downside shocks. For as long as concerns over slowing global growth and weak demand for Crude remain major themes, the Oil rally is at risk of running out of steam, regardless of the expected OPEC+ extensions on supply cuts.

Share:


Related

The Downfall of Euro in 2022: the Analysis of its Reasons, the Current Situation, and the Objective Forecast
The Downfall of Euro in 2022: the Analysis of its Reasons, the Current Situation, and the Objective Forecast

Before getting down to analyzing why Euro reminds of a mafia victim in cement shoes falling off a Chicago bridge, allow us to open it up with a meme joke that best describes this whole ordeal...

5 Oct 2022

Positive mood stalls on the “pivot” trade
Positive mood stalls on the “pivot” trade

USD slid against most of its major peers. The DXY closed a tick above its lows of 110.05. Resistance is at 110.76 while next support is 109.29. GBP gained for a sixth session in a row, a winning streak not seen since April 2021...

5 Oct 2022

OctaFX glances at current economic shifts - the good, the bad, and the strange
OctaFX glances at current economic shifts - the good, the bad, and the strange

Pandemics and health crises, political tensions, geopolitical tension flashpoints popping up, Western sanctions on significant European and Asian economies, and grave tensions between...

3 Oct 2022

The Euro rebounded from the low
The Euro rebounded from the low

After updating its multi-year lows again, the major currency pair rebounded. The current quote for the instrument is 0.9656. Last night, the local interest in risks improved a bit, helping the asset to successfully correct...

29 Sep 2022

Gold Shows Signs of Life, But Heads Towards Another Losing Month
Gold Shows Signs of Life, But Heads Towards Another Losing Month

The precious metal is largely considered as a hedge to inflation, but it has not confirmed this status during the current year. It did kick it off with a rally, but as the Fed begun hiking rates back...

28 Sep 2022

Forex and Cryptocurrencies Forecast for September 26-30, 2022
Forex and Cryptocurrencies Forecast for September 26-30, 2022

Last week, all the attention of the markets was focused on the FOMC meeting of the US Federal Reserve, which took place on September 21. The probability of another rate hike by 75 basis points (bp)...

26 Sep 2022


Editors' Picks

IronFX information and reviews
IronFX
88%
FXCM information and reviews
FXCM
87%
NordFX information and reviews
NordFX
85%
MultiBank Group information and reviews
MultiBank Group
84%
Vantage information and reviews
Vantage
83%
FP Markets information and reviews
FP Markets
81%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.