FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%
EUR/USD
1.1720
BTC/USD
42 648.00
GBP/USD
1.3685
USD/JPY
110.7470
USD/CHF
0.9235
USD/CAD
1.2661
EUR/JPY
129.7966

Stock Futures Surge, Bitcoin Breaks 50000


23 August 2021

Futures in the United States and Europe are trading higher today, following the erratic performance of stock markets last week. The S&P 500 fell about 0.6% last week, while the blue-chip Dow fell 1.1%. The Nasdaq, the tech-savvy index, dropped 0.7% during the week. The reason behind the turmoil is that investors are unsure how the withdrawal of the central bank’s stimulus will affect economic recovery, which is already being hampered by a ramp-up in coronavirus cases caused by the Delta variant. Investors should keep a close eye on the tapering situation in order to predict how markets could move in the near future.

This week’s big event is the Jackson Hole Symposium. It would virtually take place on Thursday and Friday. The event will be attended by leading financial professionals, including officials from various countries. Stock traders will scrutinise comments in order to better understand the US economic recovery. This event may also give clues about the Fed’s plans to reduce its monthly bond purchases of $120 billion.

Similarly, stock market participants will also be watching the German Flash Manufacturing PMI report, which is set to be released today. The data would give investors valuable insight into how European countries are currently performing. Readings have been higher than expected for the last two months. Currently, everyone is wondering whether the data will show signs of economic growth slowing, as it has in other countries. Moving forward, investors should anticipate some volatility in stock markets as governments around the world adjust their policies in response to the state of inflation and economic growth. Furthermore, Wall Street typically reacts more to changing interest rates than to tapering, so we can anticipate a lag between tapering and the first interest rate hike.

Bitcoin

Bitcoin, the gold standard of cryptocurrencies, has shattered the critical $50,000 mark and is on a multi-month high. This is the highest price since the 15th of May. Bulls have helped the asset break through a number of technical barriers, including the $47,000 low resistance in April.

A rise in the adoption of cryptocurrencies is a major reason for the recent surge in prices. Crypto adoption has jumped a whopping 881% over the past year. Similarly, the total market capitalization of digital currencies was $2.17 trillion on Sunday. The rise in market cap has been supported by a boost of 18% in the price of Cardano and a gain of 11% in the Binance coin. Dogecoin and Solana also increased by 9% and 73%, respectively during the same time period.

Oil

Oil prices have slumped drastically, posting their biggest week of losses in nearly 9 months. Brent crude settled at $65.18 per barrel last week, dipping nearly 8%. The future outlook for oil demand appears grim with the rise of coronavirus cases and countries raising restrictions, putting a curb on free movement and implementing social distancing measures.

On the supply side, US production has increased to 11.4 million barrels per day, and drilling companies have been installing additional rigs for the last three weeks. Similarly, OPEC countries are gradually increasing supply, which was halted in 2020. Moving forward, futures contracts show that the market expects an adequate supply of oil in the coming months.

Gold

The dollar index has risen in recent days, aided by a hawkish Fed, which is hinting that the majority of policymakers believe the central bank should begin tapering its stimulus before the end of the year. As a result, the dollar surged to its highest level in nearly 9 months, raising the cost of holding gold.

Rising corona cases, on the other hand, and concerns about slowing economic growth have provided some support for the precious metal. Traders should dissect the Jackson Hole Symposium discussions to determine how markets will react in the short term.

Asian Markets

Asian Pacific stock markets are up today after Hong Kong’s Hang Seng index recovered from a massive drop last week. Because of the uncertainty surrounding regulatory crackdowns on Chinese technology firms, the index fell as much as 20% below its February peak.

As of 11:47 p.m. EST, the Nikkei jumped 1.73% while the Shanghai Composite Index was up 1.00%. The ASX 200 index surged 0.35%, and Seoul’s Kospi rose 1.46%. The Hang Seng index, in Hong Kong, has climbed 1.83%.

#source

Related

Further recovery in XAU/USD appears elusive but Powell holds the key
Further recovery in XAU/USD appears elusive but Powell holds the key

Gold price rebounds from fresh six-week lows but upside appears limited. Fed Chair Jerome Powell’s speech in focus, FXStreet’s Dhwani Mehta reports...

24 Sep 2021

Stocks rise after Fed walks fine line on tapering
Stocks rise after Fed walks fine line on tapering

European markets trading higher after the Fed delivered another lesson in how to gently massage markets into accepting that tightening is on its way. The FTSE 100 has...

23 Sep 2021

Hawkish Fed brings out the bulls as dollar and stocks rise
Hawkish Fed brings out the bulls as dollar and stocks rise

The Federal Reserve took its biggest step yet towards scaling back its pandemic stimulus on Wednesday following the conclusion of its two-day policy meeting...

23 Sep 2021

Trading the BoE and FOMC meetings
Trading the BoE and FOMC meetings

The FOMC and the BoE meeting are firmly in our sights now, and positions and exposures will need to be managed accordingly. Certainly, the FOMC meeting could...

22 Sep 2021

Stocks bounce back after Evergrande panic
Stocks bounce back after Evergrande panic

As investors increasingly liken the Evergrande crisis with the collapse of the Lehman Brothers in 2008, they remain in the dark about the Chinese government's intentions...

21 Sep 2021

Oil Was Put on Hold
Oil Was Put on Hold

The oil price is falling after rallying before. Early in another September week, Brent is trading at $74.50 and has a lot of room to correct. The strong greenback...

20 Sep 2021


Forex Forecasts

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 2006-2021 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.