Ukraine verurteilt Wahl-Pläne Moskaus für besetzte Gebiete +++ SPD vollzieht Kehrtwende in Russlandpolitik +++ Nawalny-Team: Seit Tagen kein Lebenszeichen vom Kremlgegner +++ Der Newsblog.
Israels Armee setzt Bombardement im Gazastreifen fort +++ Freigelassene Israelis über Hamas-Geiselhaft +++ Söder plant Israel-Besuch +++ Der Newsblog.The small-cap Russell 2000 rose 12.56 points or 0.67% at 1880.81.
In addition, all the major indices closed higher for the sixth consecutive week. The Dow Industrial Average eked out a 0.01% gain – the smallest of gains but still a gain.
A look at the final numbers shows:
The Russell 2000 rose 0.97%
For the trading week:
The so-called „Magnificent 7“ mostly outperformed with the exception of Amazon and Alphabet. Alphabet moved lower on the day. Nvidia was the biggest winner with a gain of 1.95%:
For the trading week the Magnificent 7 all moved higher with the exception of Microsoft:
Looking at the S&P components energy and information technology led the gainers (seven components rose). Consumer Staples, Utilities, and Real estate were the weakest:
Next week we will see if the string can extend to seven. The FOMC rate decision will be the biggest influencer. Higher stocks may keep the Fed chair from being too positive about rate policy/inflation into 2024.
This article was written by Greg Michalowski at www.forexlive.com.
Markets:
It’s often said that even if you knew the results of the non-farm payrolls report ahead of time, it would be tough to make money. That was the case today as price action was extremely volatile in the aftermath of the report.
EUR/USD dropped to 1.0725 on the headlines, in a 50-pip drop in the direction you would expect due to a surprise drop in unemployment and slightly better headline jobs and wage growth. However that was erased in minutes and it was similar elsewhere. Then the dollar heated up again and made new highs on a few fronts, though not EUR/USD where it fell just short at 1.0731 but that certainly wasn’t it as the same pattern played out again over the following few hours, leaving both sides of the trade searching for answers.
The yen trade was particularly nasty as the first jump in the dollar appeared to attract those looking for exit liquidity and the pair was smashed 140 pips from the highs. A second round of bids emerged in a rally to 144.75 from 143.75 but again was beaten back into the London fix. A third round of bids eventually helped the pair to 145.00 as Treasury yields rose.
Mixed in was a UMich consumer sentiment report. The strong headline wasn’t the real story though as both short and long-term inflation metrics dropped, adding to the disinflation narrative that’s percolating.
US equities were slated to open softer but found bids early and that continued throughout the day as stocks posted a sixth week of gains.
The week ahead will build up to the Fed and ECB rate decisions, along with some important Treasury auctions. Have a great weekend.
This article was written by Adam Button at www.forexlive.com.
The US announced another 3 million barrels of purchases to refill the SPR today and that’s a modest positive catalyst as the White House is able to refill it at prices below what they paid. I’d argue that’s just more inventory down the line to keep oil below $100 but the oil bulls will take what they can get.
In the latest rout in oil, I wonder how many pair trades were involved with oil and bonds. Crude makes a great inflation hedge and with oil prices declining and bonds rallying, you wonder how many of those trades are being unwound.
Technically, there isn’t much to love here but there is some support in the $66-68 range, which equates to a positive risk-reward if you think OPEC+ can tighten the market in Q1 and US producers finally slow down. I don’t hate that trade but I would rather be late than early.
This article was written by Adam Button at www.forexlive.com.
Although sharply lower, there is some hope for the buyers. Technically looking at the weekly chart above, the price fell below its 200-week moving average for the first time since early May at $70.31 during yesterday’s fall. Today the price has rebounded back above that long term moving average. Closing back above the MA gives dip buyers some hope. Moreover, it is now a level that traders can once again lean against in trading going forward. As long as the price remains above, there is hope for further upside corrective probing.
Drilling to the hourly chart below, the rise today stalled near its 100-hour moving average. For dip buyers, if the price can get and stay above the 100-day moving average, the hope for more corrective price probing toward $72.63 (swing area), $72.93 (38.2% retracement) and the falling 200-hour moving average (at $73.81) are the next upside targets.
Note: If the price were to close below the 200-week moving average it would have been the first close below that moving average since January 2021. Although the price fell below the 200-week moving average in March and again in May, it could not close below that moving average level
This article was written by Greg Michalowski at www.forexlive.com.