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Real-time News
November 10th - On November 9th local time, the Federal Aviation Administration (FAA) reported that more than 15 air traffic control centers in the United States reported staff shortages that day. The FAA announcement indicated that some facilities at some of the busiest airports in the U.S., including New York, Washington D.C., Atlanta, Dallas, and Chicago, were affected. It is understood that staff shortages may force air traffic control agencies to reduce the number of flights at certain airports to maintain safety, potentially causing widespread delays.On November 10th, Goldman Sachs stated that a growing number of US investors are buying Japanese stocks, particularly those focused on technology and artificial intelligence, attracted by their strong returns relative to US stocks. Bruce Kirk, Goldman Sachs chief Japan equity strategist, said, "The pace of US capital inflows has reached its fastest level since Abenomics." He added that active participation by US investors in Japanese equities has reached its highest level since October 2022. This influx of US funds reflects the strong performance of Japanese equities this year, boosted by the appreciation of the yen and optimism surrounding Sanae Takashis stimulus policies. In dollar terms, the Nikkei 225 index has risen approximately 30% this year, far exceeding the S&P 500s 14% gain. Kirk believes there is still room for further foreign capital inflows, as global investors net holdings in Japanese equities remain well below the peak levels seen during "Abenomics," and continued global investors need for asset diversification may also support this trend.On November 10th, the Ukrainian State Electricity Company announced that due to Russias continued attacks on Ukrainian energy facilities, most regions of Ukraine will experience 24-hour power rationing on November 10th. The company stated that the rationing will last from midnight to 11:59 PM, and industrial users power consumption will also be limited during the same period. The Ukrainian government also urged the public to conserve electricity during peak hours.On November 10th, Bezoss space company Blue Origin planned to launch its New Glenn rocket from Cape Canaveral, Florida, on Sunday, a key test in the startups path to challenging SpaceXs dominance. The approximately 97.5-meter-tall rocket will carry two spacecraft built by Rocket Lab to Mars. This mission marks New Glenns first mission for NASA. New Glenn successfully completed its maiden flight in January, reaching orbit, but its boosters failed to land. Similar to SpaceXs Falcon series, New Glenn is designed to be partially reusable, with boosters capable of multiple launches, thus reducing costs.On November 10th, New York Federal Reserve President Williams stated that financial pressures faced by low- and middle-income Americans could threaten the resilience of the U.S. economy, even as wealthier families benefit from the stock market boom. In an interview, Williams said the Feds December interest rate decision "will be a balancing act." He noted, "Inflation remains high and shows no signs of declining," but the U.S. economy "still exhibits a degree of resilience." Nevertheless, many Americans are still struggling with housing and living costs. There are signs that "low- and middle-income families are facing some constraints in terms of affordability," posing a risk to consumer confidence and spending. Williams also rejected calls to modify the Feds benchmark interest rate mechanism, stating that expectations of productivity gains driven by artificial intelligence are supporting the market, but he is concerned about potential over-investment and a stock market bubble.

European Open: FTSE Aims For a 5th Bullish Week, USD/CAD in Focus

Skylar Shaw

Apr 12, 2022 10:55

The ASX 200 index in Australia increased by 33.4 points (0.45 percent) to 7,476.20.


The Nikkei 225 index in Japan has gained 87.06 points (0.25 percent) and now trades at 34,583.57.


The Hang Seng index in Hong Kong has dropped -124.54 points (0.57%) and is now trading at 21,684.44.


The A50 Index in China has increased by 33.08 points (0.24 percent) to 13,884.16.


The FTSE 100 futures in the United Kingdom are now up 50 points (0.67 percent), with the cash market expected to start at 7,601.81.


Futures on the Euro STOXX 50 are now up 32 points (0.86 percent), with the cash market expected to start at 3,834.01.


The DAX futures in Germany are now up 96 points (0.68 percent), with the cash market expected to open at 14,174.


Futures in the United States: The DJI futures are now down -10 points (-0.03 percent )


Futures on the S&P 500 are now up 2 points (0.01 percent )


Futures for the Nasdaq 100 are now down -2 points (-0.04 percent )

Market Internals (FTSE)

On the weekly chart, if the FTSE closes around 7550 today, it will create a little bearish pinbar. It would also be the market's fifth straight positive week, and the first of the year. However, the FTSE hasn't had more than five positive weeks since May 2018, so the chances of a rebound next week are slim. Especially considering, as bulls lose speed, volatility into recent highs has been the lowest in the last five weeks.


08 April 2022, FTSE 350: 4230.52 (-0.45%).


16 stocks hit new 52-week highs, while 7 hit new lows.


89 (25.36 percent) equities rose, while 250 (71.23 percent) fell.


Outperformers:


Hochschild Mining PLC (HOCM.L) is up 13.77 percent, while BAE Systems PLC is up 5.16 percent (BAES.L)


Capricorn Energy PLC is up 4.72 percent (CNE.L)


Underperformers: Ferrexpo PLC (FXPO.L) -42.6 percent; Polymetal International PLC (POLYP.L) -37.8 percent; EVRAZ plc -30.4 percent (EVRE.L)

 

At 13:30 BST, the job situation in Canada will be discussed.


Employment in Canada is now at 5.5 percent, the lowest level since June 2019. Even yet, if it matches projections and falls to 5.4 percent, it would be the lowest it has been in at least 48 years.


Expectations for another big job gain are modest, with the consensus hovering around 80k, a long cry from the 336.6k it printed in February. Still, since that fears of nuclear war have (hopefully) diminished compared to a month ago, another solid report might tilt the scales back towards a BOC (Bank of Canada) rate rise this month.


Prior to the jobs report in Canada, the USD/CAD is hovering at resistance.


While currency and commodities market volatility remained minimal overnight, we observed a continuation of yesterday's developments. For the eighth day in a row, the dollar is higher (while the euro is down). In today's Asian Open report, we mentioned a probable bull flag on GBP/AUD, and a similar setup is emerging on GBP/CAD, albeit we'd need to see a break above the 1.6473 high to invalidate the bearish channel and confirm the flag.

 

The possibility for USD/CAD to mean reversion on the daily chart was highlighted on Tuesday, and it has not disappointed, climbing for two days in a row and hitting our top bullish objective. Prices are stabilizing at the highs on the four-hour chart, as the monthly pivot point, weekly R1, and 200-bar eMA offer resistance.


Given that markets are already pricing in a 50-bps raise from the Bank of Canada this month, a shockingly weak jobs data for Canada might see the pair break decisively higher (and may also provide the more volatile move). However, if the jobs data is greater than predicted, USD/CAD may retreat from its recent highs. As a result, the zone between 1.2580 and 1.2610 is crucial to monitor.


Regardless of today's conclusion, considering the recovery from 1.24 after its powerful bullish pinbar on Tuesday, we may see this one break higher in the future.