Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
Geopolitical News Influence Markets
Russian-Ukrainian conflict is influencing every economic aspect. Due to sanctions, not only Russia is exposed to catastrophic financial crisis, but other countries, which are dependent on Russia’s commodities as well. Other countries don’t want to risk in this situation and are careful in their domestic policy.
Stocks and oil posted gains on Tuesday amid a lull in volatility caused by the war in Ukraine and sanctions imposed on Russia. Brent’s resistance is at 99.70 and the support on 96.80.
Russian markets remain under pressure after the US and its allies moved to block the Bank of Russia's access to foreign exchange reserves and disconnect some creditors from the SWIFT messaging system for global banking.
The conflict and moves to isolate commodity-rich Russia have hit markets. Disruptions in the supply of raw materials such as grain and energy threaten to fuel already high inflation and slow economic growth as the Federal Reserve is preparing to raise interest rates. Lenders around the world are already making it difficult to finance transactions involving Russian resources. The gas price has jumped on February 24, now it’s descending but any news can have big impact on gas.
Australia's central bank kept the cash rate at a record low and said it would remain calm as it assesses the risks of a Russian invasion and a subsequent surge in energy prices. AUD dipped immediately after announcement to 0.7247, but then returned to the previous level.
In cryptocurrencies, Bitcoin jumped above $43,000 on speculation that digital tokens could be increasingly used for payments due to sanctions against Russia. Now BTC is holding at approximately $43,300.
Have a good trading day!
OPEC-JMMC meetings will be hosted on Thursday, December 2 during the whole day.
Last week was not full of events, but we still saw decent moves in the charts of majors, S&P500, NASDAQ, oil, and crypto. The upcoming week will bring even more volatility to your favorite assets!
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.