Frank Walbaum
FX Strategies.Asia
Important news for the day
- Tue, 22nd, 15:25 CET UK BoE gov Bailey speech.
Stock markets
According to Goldman Sachs strong gains in the S&P 500 index are over. Analysts say that returns of about 3% should be expected over the next decade. In particular the competition from bonds might cause the strong momentum to be subdued. The results had so far rather returned 11% in the last ten years on average. The index faces a high chance that it will remain behind the bond market this year. The low interest environment was one main driver for the positive returns as economic growth remained positive. So far this year only some tech stocks were the main driver behind the current 23% return.
Market talk
The Dollar remains stronger and might show further positive momentum moving forward. Most currencies lose steam against the Greenback, yet the momentum remains limited so far this week. Interesting might be the breakout to higher levels in the USDJPY currency pair, as further weakness in the Yen should be expected. Stock markets faced a small correction yet the VIX keeps falling, which should be seen as a sign that markets remain calm. Gold and Silver continue to move higher. If Gold can cross the upcoming slight resistance it might also continue the positive sentiment.
Tendencies in the markets
- Equities positive, USD sideways, cryptos sideways, oil weaker, metals stronger, JPY weaker.
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