Tag - fundamental analysis

Today's focus is on the US CPI data, which experts believe will be better than expected. The forecasted US CPI m/m is 0.3%, and y/y is 3.1%, a positive sign for the market as the Fed's inflation target is 2%. Even a strong inflation reading may lead to one more interest rate hike, keeping traders somewhat worried. The reaction of the 2-year Treasury yield and the dollar index will indicate the Fed's next move. With inflation slowing down, the path of least resistance for the US equity market is skewed to the upside.

Here’s the scoop: Businesses employ various strategies to soften economic conditions before resorting to mass layoffs. These measures include reducing job postings, hiring less, cutting temporary help, and reducing hours worked. Average weekly hours have decreased, potentially indicating a return to normal or a slackening labor market depending on future trends.

When I started trading stocks a few years ago, I often needed to pay more attention to my technical analysis skills and trust that the market would play fair according to my analysis. I have since discovered that the safer approach to trading stocks is to, more often than not, seek out investing opportunities - that is, catching stock commodities with a potential to rise.

Saudi Arabia and Russia, two of the world's largest oil producers, have decided to extend cuts to their oil production to support oil prices and boost income. This move comes despite weakened demand due to the sluggish economy.

July is right around the corner, and it heralds the start of the year's second half. In this article, I hope to share with you, my dear readers, a few of my trade ideas for July in hopes that it fetches you all some sizable profits and makes your July fun and fruitful. Let’s go!

Exciting news from Mastercard: they are launching a Multi-Token Network (MTN) to explore the potential of tokenized bank deposits, stablecoins, and central bank digital currencies (CBDCs). The MTN will begin with testing tokenized bank deposits and will be available in beta mode this summer in the UK. They have invited banks and financial institutions to participate in the initiative.

Here's the latest news from Federal Reserve Chair Jerome Powell. While speaking at a conference in Portugal, Powell expressed optimism about the US economy and decreased the possibility of a recession, stating that the economy has shown resilience and is still growing, albeit at a modest pace. He acknowledged the possibility of a recession but emphasized that it is not the most likely scenario.

Here's the scoop on China's gold demand. According to Bloomberg, the country's economic slowdown is beginning to affect the sector, resulting in a cooling off of gold sales. While jewelry sales experienced rapid growth earlier this year, they only expanded by 24% in May, indicating a slowdown. China, alongside India, is a leading consumer of physical gold, including bars, jewelry, and coins

In May, against expectations of a slowdown, inflation stubbornly held at 8.7%, creating additional pressure on the Bank of England. This comes just a day before the anticipated 13th consecutive interest rate hike to curb price growth. The headline figure places British inflation at the top among major advanced economies. These numbers aren't exactly comfortable for Prime Minister Rishi Sunak, who aimed to cut inflation by half this year before the 2024 election. Moreover, they could lead to increased mortgage costs for homeowners.

The possibility of a US recession has ignited intense debates, especially as the labor market and consumer spending continue to demonstrate resilience despite aggressive interest rate hikes. However, hold on to your hats because Deutsche Bank is bringing a bold statement. They see a 100% probability of a US recession unfolding.

The European economy trudged along with meager growth from the first quarter, lacking the oomph needed to gain momentum. As inflation persists and groceries become pricier, people become more reluctant to part with their hard-earned paychecks. The recent 0.1% increase from the previous quarter falls short of expectations, and the United States isn't faring much better, fueling concerns of a potential recession in the world's largest economy.

Don't give up on gold just yet! Despite some challenging times, the World Gold Council believes gold should remain a key asset in your strategic arsenal. Even as the Federal Reserve takes a breather from its aggressive monetary policy stance, it's still maintaining a hawkish stance. In fact, they're signaling the possibility of two more rate hikes this year.