Markets Keep Advancing As Oil Plays Catch Up
Markets keep on soaring on the third week after Donald Trump’s election surprise. Many US stocks hit historical highs, and it seems like the NYSE continues advancing by inertia. The elation also spread around to oil markets, due to a positive sentiment among OPEC members about a deal to curtail production. Russian officials, are also encouraged by the signs of an emerging deal. In both cases however, there might be too much good will and not enough fundamentals to back the optimism.
President Trump’s Economic Policy is anyone’s guess
The markets still don’t know what a Trump administration will look like or how it will affect international trade. Some of the positive sentiment on Wall Street stems from the promise of renewed investment in infrastructure. Nevertheless, a lag in international commerce may derail the advances. Trump was an anti-trade candidate and although he could moderate his stance, he might not. That is a risk investors will have to take into account. read more…
Markets Readjust For The Trump Era
Markets are all finally in positive territory after Trump won the US presidential election last week. The NASDAQ and the S&P 500, which got hit after the surprise win, are finally recovering ground. Bond yields soared, as investors pulled their funds from these assets, while the US Dollar also advanced against all major currencies. Gold prices dropped and an ounce is now trading at around $1,220 USD. Trump’s declared policy direction is the main driver behind these shifts.
Trump will spend more on Infrastructure
One of the reasons why this shift is taking place is because President elect Trump is showing interest in expanding expenditure on infrastructure. This coupled with his pledge to get rid of some financial regulation as well as some environmental regulation, boosted the markets. Goldman Sachs is one of the major winners, and other traditional blue chips are also trading higher. read more…
The NYSE Doesn’t Hate President Trump
Markets had a few days to digest Trump’s surprise victory on November 8th. Many experts said that the markets would react negatively to Trump’s presidency. Conventional wisdom in Wall Street held the view that the best possible outcome for the markets would be a Clinton presidency coupled with a Republican controlled congress. It turns out that a Trump presidency has actually yielded many more winners in the stock exchange, allaying fears that markets would crash. The Dow Jones soared to record highs after the election results came in, and although there are some losers, the picture is much better than what the experts thought.
Those who won with Trump
Car maker stocks soared, together with defense and coal stocks. This reflects Trump’s promises to repeal climate change regulation, as well as promises to bolster the military. Trump is widely expected to do away with efficiency requirements for engines that make car and truck production more expensive. He is also expected to give incentives to the ailing coal industry, which was almost destroyed completely by Obama’s policies. read more…
Markets In Disarray As Trump Wins
Pollsters gave Hillary Clinton great odds of winning, and she fell short. Trump was an underdog all throughout the race, with his brash style, seemingly antagonizing so many sectors of the population that no one thought he would ever make it to the White House. But there was enough discontent among blue collar workers in key states to turn the election around. Trump won by a landslide, capturing 278 Electoral College votes, and winning in states that Republicans have not carried since the 80’s, and the white collar workers at the pinnacle of the economy are pulling their money out of the markets.
Stock markets are in disarray, shocked by the improbable win, just like when Brexit happened. It will take the markets some time to come down to earth and realize that president elect Trump will not destroy the world economy. As much as he promised to dismantle the whole structure that underpins North American free trade, it is easier said and done. He might want to re-negotiate, just like Brexiters are now re-negotiating UK’s relationship with the EU. read more…
CySEC Carries a Big Stick
Cypriot financial regulator, CySEC, which is well known in the binary industry, has handed out 2 hefty fines to 2 of the industry’s most iconic brokers. Both Banc de Binary Ltd and Rodeler Ltd – 24Option’s parent company – have been fined. Banc de Binary got a €350,000.00 fine while Rodeler got a €156,000.00 fine. The official announcement of the regulator’s decision in the case of Banc de Binary, gives scant details about the reasons for the fine, whereas the Rodeler fine has more detailed information.
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Financial Markets – Preview for Week Starting 25th September 2016
Major Events of Last Week
Global equities finished the week on a high note last Friday incited by growing speculation that the US Federal Reserve will now desist from hiking its benchmark interest rates until this coming December at the very earliest. A prominent Fed spokesperson endorsed this viewpoint by advising that interest rates must be increased gradually since substantial risks still exist that could quickly plunge the US economy into recession, if caution was not adopted. The primary US indices weakened last Friday typified by the Dow Jones Industrial Average falling by 82 points; the S&P500 inching lower by 7 points and the NASDAQ dropping 23 points. read more…
What is an ECN for Forex Trading
The Forex or foreign exchange market is a global marketplace that does not have a single address or exchange to do business. This is unlike the stock market which has different exchanges that handle the execution of orders for the stocks registered with those exchanges.
Most Forex transactions take place within the Interbank market, which is a comprised of the largest banks in the world. Retail customers cannot participate directly with this exclusive market, but can trade in Forex currencies through either a Market Maker or an ECN. read more…
How to Profit from Bitcoin Volatility
Bitcoin is fast becoming one of the most sought-after assets in the financial markets. Having risen sharply towards the end of 2013, the digital currency has now stabilised and presented itself as a viable means of generating profit in the market. Here’s how.
First, it’s important to get one thing straight. Many traders look at a Bitcoin chart and put off by the incredible volatility that the chart displays. Whereas major indices and currencies will move fractions of a percentage each day (major news releases and economic events aside), the value of one Bitcoin in US dollars can fluctuate between 5% to 10% in a single day, and even more in the event of a major economic shift. This, however, can be used to a Bitcoin phrases advantage. Get on the right side of one of these large valuation shifts, and you can draw large profits from the Bitcoin market. read more…
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