Connect with us

Market Overview

Asian Market Update: Yen Hits Two-Year High as Regional Stocks Follow Wall Street’s Lead

Published

on

Improved risk sentiment failed to deter the yen on Thursday, as its rally against the dollar deepened in the wake of stronger than expected U.S. inflation data.

// -- Discuss and ask questions in our community on Workplace.

Yen’s Relentless Surge Continues

The Japanese currency climbed to more than two-year highs against the dollar, extending its rally to four straight days. The USD/JPY exchange rate bottomed out at 106.30, its lowest since November 2016. At the time of writing, the pair was down 0.4% at 106.53.

A weaker U.S. dollar has been the primary catalyst behind the yen’s newfound strength. On Thursday, the dollar index (DXY) was on track for its fourth consecutive drop, undoing a two-week rally that climaxed on Feb. 9.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Earlier this month, the Japanese currency benefited from global risk aversion tied to a large-scale correction in U.S. stocks that began Feb. 2. As a regional safe-haven, the yen usually benefits from periods of volatility and heightened uncertainty.

Japan’s Finance Minister Taro Aso has been closely monitoring the yen’s movement over the years, vowing to intervene in the market where necessary to curb excess volatility. In Aso’s view, the yen’s recent strength is not compelling enough for government forces to intervene.

The Bank of Japan (BOJ) has expressed little interest in diverging from its current path of monetary policy now that the economy is finally catching up to years of record stimulus. The Japanese economy expanded much slower than expected in the fourth quarter, but still managed to cap off its eight consecutive quarterly expansion. GDP expanded 0.5% on the quarter for its longest streak of uninterrupted growth in 2018.

Tokyo will likely reappoint Haruhiko Kuroda for a rare second term as BOJ Governor, signaling the government’s continued confidence in the central bank’s direction.

Asia Pacific Markets Rise

Regional stocks chased Wall Street higher on Thursday, with Japan’s Nikkei 225 Index adding 1.2% through the midday. Meanwhile, Australia’s S&P/ASX 200 was also up 1.2%.

Asian markets were far less active than usual as China, South Korea, Taiwan and Vietnam remained closed for Chinese New Year.

Earlier in the day, U.S. stocks posted their fourth consecutive daily advance, as calm returned to Wall Street following the biggest selloff in years.

On the futures side, North American and European equity contracts were down across the board in pre-market trading, pointing to a soft start to the day on Thursday. European futures contracts were down especially hard, with Germany’s DAX 30 shedding 391.50 points. The U.K.’s FTSE 100 futures contract was also down 173 points.

Data watchers can expect a steady stream of market-moving reports in the coming hours. The European Commission’s statistical agency will report on the December trade balance at 10:00 GMT.

The New York session will feature a slew of early releases, including U.S. producer inflation, initial jobless claims and a pair of manufacturing surveys. Later in the morning, the Federal Reserve will report on industrial production for the month of January. The National Association of Home Builders (NAHB) will cap off the session with the monthly housing market index.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 5 (1 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 348 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Analysis

Pre Market: Dollar Pulls Back from 7-Week High as Stocks Rebound

Published

on

Global equities are attempting to rally after drifting lower for three sessions, with Asia leading the bounce thanks to rumors regarding possible monetary easing steps in China. The rumors surfaced on the heels of the Yen’s plunge which followed Bank of Japan governor Kuroda’s dovish words. Mr. Kuroda is worried about the stubbornly low inflation rate, and hinted on a delay of the ”normalization” process of the central bank’s monetary policies.

// -- Discuss and ask questions in our community on Workplace.

USD/JPY, 4-Hour Chart Analysis

As a reminder, the BOJ now owns the majority of the stock ETFs in Japan, but we might reach a point where it will own the whole float (why not?), while also technically controlling the whole Japanese government bond “market”. Meanwhile, the Euro also got under pressure lately thanks to the string of negative economic surprises and Mario Draghi’s cautious words regarding growth, and with Thursday’s ECB meeting looming, forex traders could be in for a very active week of trading.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

EUR/USD, 4-Hour Chart Analysis

The Dollar reached a 7-week high against the Euro yesterday, while the Dollar index closed at the highest level since January, and although the Greenback is correcting the recent rally today, it seems that the growing number of Dollar bears might be in for more pain after a likely short-term correction, as Treasury yields continue to rise relentlessly.

US 2-Year Treasury Yield, 4-Hour Chart Analysis

Stocks are having a relatively quiet week so far, but the bearish trend of the recent sessions remains dominant despite today’s bounce, even as volatility is still low, and trade war fears and geopolitical tensions have been easing somewhat lately. We switched to a bearish bias last week, and we maintain that the stocks look vulnerable here, although the short-term overbought readings have been cleared.

S&P 500, 4-Hour Chart Analysis

Bulls still have the hope that the major US indices can resume the recovery and launch a rally towards the all-time highs, but unless we see a quick move above last week’s highs, bears remain in control, and another test of the correction lows is likely.

On a slightly positive note, European equities enjoyed some relative strength in the last couple of days, as they were boosted by the weakness in the Euro, but looking at the broader picture, the Old Continent continues to be among the weakest regions globally since the start of the correction.

Commodities Mixed but Commodity Currencies Still Weak

AUD/USD, 4-Hour Chart Analysis

Interestingly, the Aussie and the Canadian Dollar are still under selling pressure today, despite the risk rally, and that fact strengthens our short-term bearish view on stocks, as they have been reliably leading equities since February.

In the meantime, commodities have been trading in a choppy fashion amid the Dollar rally, as gold has been pushed back below $1330 again, continuing its lengthy consolidation phase, while crude oil slightly retreated from its multi-year high near the $70 per barrel level concerning the WTI contract.

Featured image from Shutterstock

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 231 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




Feedback or Requests?

Continue Reading

Market Overview

Takes a lot of GUTS – Making Blockchain Mainstream

Published

on

Take a guess… What do all of these people have in common?

// -- Discuss and ask questions in our community on Workplace.

They all have Ethereum wallets and don’t even know it.

The new GET protocol is designed to use blockchain as an engine and run seamlessly in the background without the end user ever knowing what powers the application.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

The GUTS ticketing app is the first mainstream application to use GET and the people in the above photo are the first 1000 users. It’s estimated that more than 1 million people in the Netherlands will use it to securely purchase tickets without the fear of scalpers.

Welcome to the future!

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Global Selloff Pauses for Earnings
  • EOS is now available in eToro!
  • Cryptocurrency Future in India

Please note: All data, figures & graphs are valid as of April 24th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

The global stock rout that we’ve been seeing since early February is seemingly on hold for the time being.

Earnings season is going great, and why wouldn’t it? Donald Trump’s recent tax cuts and economic stimulus seem to be spurring the economy and adding to corporate profitability as designed.

Some economists, like Alice Rivlin of the Brookings Institute, argue that all this stimulus is coming at the wrong point in the economic cycle. Usually, countries try to stimulate the economy when it is doing poorly but when it is doing well they want to tighten things up and save the surplus for a rainy day.

As long as earnings are good, stocks should rise. The question then is what happens when earnings season is over?

The Nasdaq100 has managed to defend its position at the 200 day moving average (blue) and has since rallied a bit but it doesn’t seem like we’re quite out of the woods just yet.

Introducing EOS

eToro is very proud to announce that we have added EOS as the tenth cryptocurrency available on the platform. Of the 2000+ assets that you can trade on the platform this one is one of the most interesting.

If Bitcoin is digital gold and Ethereum is digital oil, EOS has been likened to digital real estate.

The ICO is ongoing and set to last an entire year ending on June 1st, 2018. In the end there will be a total of 1 Billion EOS in the world.

By owning EOS one token you are entitled to one billionth of the computing power of the total network. Unlike other utility tokens, EOS are not burned in the transactions. So owners will be like landlords of their space on the network.

Proponents say that this is the next level for blockchain after Ethereum and is designed to be an operating system for decentralized applications. With it, developers will be able to create apps that utilize blockchain without the end user ever knowing the intricacies of the supporting technology.

The price is up 17% since the asset has been added on the platform and up more than 100% over the last month knocking out Litecoin for the number 5 slot of all cryptocurrencies by market cap.

As with all cryptos, EOS is still in the experimental phase and as such carries a significant degree of risk.

Always diversify your portfolio with many different types of assets and not just cryptocurrencies, please.

Cryptos in India

Lastly, I’d like to thank those users yesterday, especially in India, who quickly replied to clarify a tweet I sent out regarding the RBI’s decision to ban cryptocurrencies.

To be clear, the high court has given the RBI 48 hours to respond to the claim that their new policy is unconstitutional. This happened on Sunday so their response is actually due today.

Unfortunately, this isn’t over just yet and from what it seems the court could take further time to sort this out. We hope for a quick and positive resolution in this high stakes case.

A reminder to ever rely on a single source of information. Always do your own research. 😉

Have an excellent day ahead!

This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.

The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.

Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.

Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.

Best regards,
Mati Greenspan
Senior Market Analyst

eToro: @MatiGreenspan | Twitter: @MatiGreenspan | LinkedIn: MatiGreenspan | Facebook:MatiGreenspan

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 5 (1 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 69 rated postsSenior Market Analyst at Etoro.com.




Feedback or Requests?

Continue Reading

Market Overview

Market Update: Stocks Pare Losses as U.S. Dollar Hits Three-Month High

Published

on

U.S. stocks declined for a third consecutive session Monday, while the dollar jumped to three-month highs as 10-year yields approached 3% for the first time since 2014.

// -- Discuss and ask questions in our community on Workplace.

Stocks Mostly Lower

Equity markets traded mixed-to-lower at the start of the week, with the S&P 500 Index paring losses in the final moments of trade. The index closed at 2,670.29, where it was little changed for the day.

Five of 11 S&P 500 sectors finished in negative territory, with information technology falling 0.4%. On the opposite side of the spectrum, telecommunications services rose 1.1% and energy added 0.6%.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Declining tech shares weighed on the Nasdaq Composite Index, which settled down 0.3% at 7,128.60.

Meanwhile, the Dow Jones Industrial Average slipped 14.25 points, or 0.1%, to close at 24,448.69. The blue-chip index was down as much as 134 points earlier in the day.

The decline in stocks appears to have been triggered by a steep rise in bond yields. The 10-year Treasury note peaked at 2.99%, threatening to hit 3% for the first time since January 2014. Yields have been rising as investors offload Treasurys on expectations of rising inflation. A yield at or above 3% may signal a downturn in the stock market.

Dollar Hits Three-Month High

Rising yields drove the U.S. dollar to its highest level since January.

The dollar index (DXY), which measures the greenback’s performance against a basket of six peers, rose 0.7% to 90.93. Monday’s performance allowed the dollar to trim its year-to-date decline to -1.3%. At its lowest point, the dollar was down nearly 4% for 2018.

Against the Japanese yen, the dollar surged 1% to overtake the 108.00 level for the first time since February.

The euro, pound and Canadian dollar all fell versus the greenback.

Currency speculators are calling for the Federal Reserve to raise interest rates three times this year. Analysts at Goldman Sachs believe a fourth interest rate hike is also on the table.

Busy Week for Earnings

Investors are also bracing for the busiest week of the Q1 earnings season, with 170 companies scheduled to report results. Some of the most prominent names include Verizon (VZ), Travelers Cos (TRV) and Visa (V), which are all Dow blue chips.

Google-parent Alphabet (GOOGL) report quarterly earnings Monday, beating analysts’ expectations on both the top and bottom line. The company earned $9.93 per share on revenue of $31.15 billion. Analysts had called for EPS of $9.28 on revenues of $30.29 billion.

Corporate earnings have come in largely ahead of expectations over the past two weeks. According to FactSet, 80% of S&P 500 companies that have reported so far have posted positive earnings surprises. Combined, their blended earnings growth rate foe Q1 2018 is 18.3%.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 4.00 out of 51 vote, average: 4.00 out of 51 vote, average: 4.00 out of 51 vote, average: 4.00 out of 51 vote, average: 4.00 out of 5 (1 votes, average: 4.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 348 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Continue Reading

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending