Icon close
  • Tenga en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso está permitido por ley. STARTRADER y sus entidades afiliadas no están establecidas ni operan en su jurisdicción de origen. Al invertir a través de este sitio web, es importante comprender que no está regulado por la Comisión Nacional del Mercado de Valores (CNMV) y usted no tendrá las protecciones que brinda la CNMV.

    Si decide continuar y visitar este sitio web, reconoce y confirma lo siguiente:

    1. STARTRADER no tiene sede en España ni licencia de la CNMV.
    2. Usted accede al sitio web por iniciativa propia y STARTRADER no se lo ha solicitado de ninguna manera.
    3. Desea obtener información de este sitio web, que se proporciona mediante solicitud inversa de acuerdo con las leyes de su jurisdicción de origen.
    4. Invertir a través de esta web no te otorga las protecciones previstas por la CNMV.
    5. Si decide invertir a través de este sitio web o con cualquiera de las entidades de STARTRADER, estará sujeto a las normas y regulaciones de las autoridades reguladoras internacionales pertinentes, no a la CNMV.

    STARTRADER quiere dejar claro que se encuentra debidamente licenciado y autorizado para ofrecer los servicios y productos financieros derivados enumerados en el sitio web. Las personas que acceden a este sitio web y registran una cuenta comercial lo hacen por su propia voluntad y sin solicitud previa.

    Al confirmar su decisión de continuar e ingresar al sitio web, por la presente afirma que esta decisión fue iniciada únicamente por usted y que ninguna entidad de STARTRADER ha realizado ninguna solicitud.

  • Si prega di notare che il sito web è destinato a individui residenti in giurisdizioni dove l'accesso è permesso dalla legge. STARTRADER e le sue entità affiliate non sono né stabilite né operanti nella vostra giurisdizione di residenza. Quando si investe tramite questo sito web, è importante comprendere che non è regolamentato dalla Commissione Nazionale per le Società e la Borsa (CONSOB), e non si avranno le protezioni offerte dalla CONSOB.

    Se si sceglie di procedere e visitare questo sito web, si riconosce e si conferma quanto segue:

    1. STARTRADER non ha sede in Italia né è autorizzata dalla CONSOB.
    2. Si sta accedendo al sito web di propria iniziativa e non si è stati sollecitati in alcun modo da STARTRADER.
    3. Si desidera ottenere informazioni da questo sito web, che sono fornite su base di sollecitazione inversa in conformità con le leggi della propria giurisdizione di residenza.
    4. Investire tramite questo sito web non concede le protezioni fornite dalla CONSOB.
    5. Se si sceglie di investire tramite questo sito web o con una qualsiasi delle entità STARTRADER, si sarà soggetti alle regole e ai regolamenti delle relative autorità di regolamentazione internazionali, non alla CONSOB.

    STARTRADER desidera chiarire che è debitamente autorizzata e abilitata ad offrire i servizi e i prodotti derivati finanziari elencati sul sito web. Gli individui che accedono a questo sito web e registrano un conto di trading lo fanno completamente di loro iniziativa e senza sollecitazioni precedenti.

    Confermando la vostra decisione di procedere ed entrare nel sito web, affermate che questa decisione è stata iniziata esclusivamente da voi, e che non è stata fatta alcuna sollecitazione da parte di alcuna entità STARTRADER.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

9 May

Overview

U.S. Dollar at two decades high

Safety is what investors seek

Gold is at a critical level

FOREX

U.S. Dollar Index (USDX)

The dollar hit a two-decade high on Monday as investors searched for safety and yield in the face of growing concern over slowing global economic growth and rising interest rates. The Dollar Index gained 0.5% to 104.170, rising to levels not seen in 20 years after rising for a fifth week in a row last week.

The dollar’s gains were set against sliding stock markets and sent it ahead against other havens, commodity currencies, and emerging market currencies alike. The yield on benchmark 10-year U.S. government bonds has climbed a staggering 163 basis points this year and taken the dollar with it.

Speculation that Russian President Vladimir Putin might declare war on Ukraine to call up reserves during his speech at “Victory Day” celebrations also hurt market sentiment. Putin has so far characterized Russia’s actions in Ukraine as a “special military operation”, not a war, or an invasion.

Euro (EURUSD)

The common currency traded is 0.3% lower at 1.0516 as market participants grow increasingly concerned over a global economic slowdown. In a report published over the weekend, the International Monetary Fund warned that global growth could continue to slow for the rest of the year and inflation could run higher than expected. 

“This may be most salient for parts of Europe, given their relatively higher reliance on Russian energy imports,” the IMF noted.

In the meantime, European Central Bank (ECB) Governing Council member Olli Rehn reiterated that July could be the right time to start raising the policy rate, but this comment had little to no impact on the euro’s valuation. In the absence of high-impact macroeconomic data releases, the risk perception should continue to drive the action in financial markets.

Indices

U.S. Indices

Dow futures declined during overnight trading following a volatile week of trading after Federal Reserve policymakers raised interest rates by a half percentage point while signaling more hikes of the same size.

Dow Jones Futures were down 0.5% while S&P 500 Futures and Nasdaq 100 Futures were each trading 0.6% lower.

Market participants will also be looking ahead to Wednesday’s April consumer price index amid expectations of an 8.1% increase year-over-year, easing from March’s reading of 8.5%. The producer price index, which is a gauge of wholesale prices, is released Thursday.

During last week’s trade, the NASDAQ Composite lost 1.54%, the S&P 500 lost 0.21% and the Dow Jones Industrial Average fell 0.24%, respectively. It was the sixth straight losing week for the Dow, and the fifth straight for the other two major indexes.

European Indices

European stock markets are expected to open lower Monday as investors continue to fret about slowing global growth and central banks tighten monetary policy to combat soaring inflation.

The DAX futures contract in Germany traded 0.6% lower, CAC 40 futures in France dropped 1%, and the FTSE 100 futures contract in the U.K. fell 0.7%.

The Bank of England also raised interest rates, for the fourth meeting in a row, while policymakers at the European Central Bank have started talking more openly about hiking rates, potentially starting in July.

The ECB should hike interest rates as many as three times this year to combat inflation, Austrian central bank governor Robert Holzmann, a known hawk, said in a newspaper interview over the weekend.

This week sees the release of Germany’s ZEW sentiment index and preliminary first-quarter GDP data from the U.K., and these are likely to point to slowing growth in two of Europe’s largest economies.

Asian Indices

Asian shares slid and the dollar hit two-decade peaks on Monday as U.S. stock futures extended their decline on rate worries, while a tightening lockdown in Shanghai stoked concerns about global economic growth and recession.

Chinese trade data for April were not quite below expectations, with exports up 3.9% on the year and imports flat. However, there was no let-up in China’s zero-COVID policy with Shanghai tightening the city-wide COVID lockdown for 25 million residents. Chinese blue chips eased 0.8%, while the yuan touched another 18-month low to trade at 6.7049 per dollar. The Hong Kong Hang Seng lost 3.81%.

Japan stocks were lower after the close on Monday, as losses in the Gas & Water, Construction, and Services sectors led shares lower.

At the close in Tokyo, the Nikkei 225 declined 2.53% to hit a new 1-month low. The Nikkei Volatility, which measures the implied volatility of Nikkei 225 options, was up 11.01% to 27.83 a new 1-month high.

Metals

Gold has eased by 0.50% today in Asia to USD 1,874.00 an ounce, erasing Friday’s modest 0.35% gain. There are some constructive notes in gold’s recent price action. It is holding up remarkably well versus a rampant U.S. dollar and a US yield curve where a lot of it starts with three in yield terms. 

Meanwhile, for the week ahead, other than today’s Chinese trade data, the focus will be on US inflation data and Fed speakers. Analysts at TD Securities argue that core prices likely stayed strong in April, regaining momentum to 0.5% m/m after recording 0.3% in March.

A slew of Fed officials will be providing remarks in the upcoming week following the May meeting. New York Fed’s John Williams and Governor Christopher Waller’s remarks will be important and would be expected to shed some light after Fed Chairman Jerome Powell’s presser last week that failed to offer much in the way of clarity on what the Fed will do after frontloading rate hikes until neutral. 

Crude Oil

Oil prices slipped on Monday, sparked by weak China data and fears a global recession. Furthermore, investors eying European Union talks on a Russian oil embargo that could tighten global supplies.

Brent crude lost 41 cents, or 0.4%, to $111.98 a barrel. U.S. West Texas Intermediate crude was at $109.24 a barrel, down 53 cents, or 0.5%. Both contracts briefly turned positive after falling more than $1 earlier in the session. China’s crude imports rose nearly 7% in April although imports for the first four months fell 4.8% on the year.