<p>Trivia: Did you know that
future contracts are generally <a target=“_blank“ href=“https://kowela.com/signup“ target=“_blank“ rel=“follow“>traded on commodity exchanges</a>? Fact: The two largest commodity markets in the U.S. are
the New York Mercantile Exchange and Chicago Mercantile Exchange. </p><p>Raw materials like grain, bread, oil, and metals are commodity
products. The purchasing and selling of these primary resources are known as
commodities trading. This is because it occasionally involves the exchange of
tangible things. However, futures contracts, where you agree to purchase or
sell a commodity at a certain price at a particular date, are where it
typically occurs.</p><p>Your portfolio can become more diversified by adding
commodities, which act as an inflation hedge. However, commodities are very
erratic. Moreover, trading commodities is complicated because unpredictable
events like weather and political unrest can have a significant impact on
prices. Continue reading to discover several <a target=“_blank“ href=“https://kowela.com/“ target=“_blank“ rel=“follow“>strategies
to invest</a> in items and the fundamentals of
commodities trading.</p><p>UNDERSTANDING COMMODITY MARKET</p><p>You probably need to give the location of their cultivation or
mill more thought when you purchase a bag of wheat flour or an ear of corn from
a grocery store. This is so because corn and flour are both products. Commuting
and selling these replaceable resources in large quantities is known as
commodities trading. In addition, these basic materials frequently serve as the
foundation for produced goods.</p><p>The price movement of a commodity is the subject of bets by
traders. You buy futures or go long if you believe a commodity’s price will
increase. You sell futures or go short if you anticipate a price decline.</p><p>TYPES OF COMMODITIES</p><p>Commodities are divided into two groups by investors: hard and
soft. Through mining or drilling, hard commodities was discovered. Grown or
cultivated soft goods include cattle. The four primary sorts of commodities are
as follows:</p><p>Products from agriculture: delicate items.</p><p> -They include agricultural products like lumber, cotton,
corn, wheat, soybeans, and coffee.</p><p>Meat and livestock are soft goods also. They consist of milk,
meat, pork belly, and live cattle.</p><p>Hard goods: energy items. They consist of coal, unleaded
gasoline, natural gas, propane, crude oil, and unleaded fuels.</p><p>Metals: durable goods. They consist of industrial metals like
copper, aluminum, and palladium and noble metals like silver and gold.</p><p>Let me give you an example situation of commodity trading.</p><p>Consider being a food processing business that requires corn to
make cornmeal for food stores. If the crop is smaller, you want to avoid taking
the chance of higher prices. Consequently, you spend $4 on that futures
contract for 5,000 bushels of maize. If prices decline, you lose money because
you overpaid. However, even if they soar, you’re still only paying $4 per
bushel.</p><p>OVERVIEW</p><p>In summary, commodities are a well-liked stock market hedge. For
instance, during a bad market, many investors turn to gold. Likewise, a common
inflation hedge is commodities. Commodity prices frequently rise in response to
high inflation; when inflation is reduced, equities and bonds perform better.
Buying and selling the actual commodity is one way to trade it, but futures
contracts are far more popular. </p>

This article was written by ForexLive at www.forexlive.com.

<p style=““ class=“text-align-justify“>The optimists are feeling a bit more upbeat now as we look towards North America trading, with US futures nudging higher in a more positive risk tilt – at least for the time being. Nothing is set in stone though, especially since we’re all waiting on the US CPI data that is to come later at 1330 GMT.</p><p style=““ class=“text-align-justify“>Here’s a look at how the S&P 500 has performed in each of the last four editions of the CPI data (the report covers the figures for the month prior):</p><ul><li>August: +2.1%</li><li>September: -4.3%</li><li>October: +2.6%</li><li>November: +5.5%</li></ul><p style=““ class=“text-align-justify“>Those are volatile moves and one can expect more of the same again later today. It is an especially important time for equities especially after the rally since last month, as it faces key technical challenges on the chart:</p><p style=““ class=“text-align-justify“>The bottom came after the October release (for the month of September) of the US CPI data and the rebound finally stalled at key trendline resistance from the downtrend this year (white line). Since then, a retreat in stocks has only resulted in a test of the 100-day moving average (red line) and so the risk lines are quite clearly drawn up ahead of the big events this week.</p><p style=““ class=“text-align-justify“>A break above the key trendline resistance will give room for the S&P 500 to rally back towards its August high at 4,325 while a break below the 100-day moving average will pose a major setback to buyers in a potential fall back towards the November low at 3,698 for starters.</p>

This article was written by Justin Low at www.forexlive.com.

<ul><li>UK inflation is high</li><li>Demand is slowing and interest rates have been rising</li><li style=““ class=“text-align-justify“>Both households and businesses are more resilient than during previous periods</li><li style=““ class=“text-align-justify“>Banks are also more resilient thanks to post-2008 regulation</li></ul><p style=““ class=“text-align-justify“>Just some token remarks there by Bailey. His speech is more focused on financial stability, so it isn’t one to really give much away ahead of Thursday’s decision.</p>

This article was written by Justin Low at www.forexlive.com.

<p class=“MsoNormal“>Equity in <a target=“_blank“ href=“https://investmentsglobal.com/register/“ target=“_blank“ rel=“follow“>accounting and finance</a> refers to the
value that may attribute to a company’s owners. The current share price depends
on the market value of equity (if it is publicly traded), a deal established by
investors, or a value assessed by valuation experts. </p><p class=“MsoNormal“>The book value of
equity is computed as the distinction between assets and liabilities on the
company’s balance sheet. The account may also be known as <a target=“_blank“ href=“https://investmentsglobal.com/“ target=“_blank“ rel=“follow“>shareholders‘ equity</a>, owners‘ equity,
or stockholders‘ net worth.</p><p class=“MsoNormal“>The term
„equity“ is used to suggest justice and fairness. Since equity
recognizes that we do not begin from the same position as others and that
inequities must be acknowledged and addressed, it differs from the word
„equality“ in this regard. </p><p class=“MsoNormal“>We must continue to
work to uncover and remove both intentional and unintended impediments brought
on by systemic structures or biases. </p><p>FORMULA
TO USE TO FIGURE OUT EQUITY</p><p class=“MsoNormal“>To determine a
company’s equity using the accounting equation, apply the following formula and
calculation:</p><p class=“MsoNormal“>OWNER’S EQUITY=
TOTAL ASSETS – TOTAL LIABILITIES</p><p class=“MsoNormal“>There are two
categories of equity value: </p><ol type=“1″ start=“1″>
<li class=“MsoNormal“>Book Value</li>
<li class=“MsoNormal“>Market Value</li>
</ol><p>Book
Value</p><p class=“MsoNormal“>Book value is The
total of all current and non-current assets on a company’s balance sheet and
represents the worth of its assets. Cash, accounts receivable, inventory,
prepaid costs, property, plant, and equipment (PP&E), goodwill,
intellectual property, fixed assets, and intangible assets are among the major
asset accounts.</p><p class=“MsoNormal“>The total of all
current and non-current obligations on the balance sheet represents the value
of liabilities. Standard liability accounts include credit lines, short-term
debt, deferred revenue, long-term debt, charges payable, capital leases, and
any fixed financial commitment.</p><p>Market
Value of Equity</p><p class=“MsoNormal“>A market value,
which may be significantly greater or lower than the book value, is how equity
is commonly described. This mismatch derives from the fact that the statements
of accounts are retrospective (all results are from the past). In contrast,
financial analysts anticipate financial performance by looking forward to the
future.</p><p class=“MsoNormal“>A corporation’s
stock’s market value can easily be ascertained if it is listed on a public
exchange. You can identify the market value of the company’s stock by
multiplying the total number of outstanding shares by the most recent share
price.</p><p class=“MsoNormal“>It is far more
challenging to estimate a company’s market worth if it is privately held.
Therefore, if the business needs to be formally evaluated, it will frequently
hire experts to do a detailed investigation, such as investment bankers,
accounting firms (valuations groups), or boutique valuation businesses.</p><p>The
importance of equity</p><p class=“MsoNormal“>Equity is a crucial
metric for determining the worth of the shareholder’s money. It provides an
understanding of the worth of a company when paired with other criteria.</p><p>PERCEPTION</p><p class=“MsoNormal“>The equity equation
establishes the company’s existing status. It accomplishes this by comparing
precise figures demonstrating what the business owns and owes. By selling
shares, a business can raise funds that are then utilized to fund operations
and projects. As a result, the company’s assets increase.</p><p class=“MsoNormal“>A business may
raise capital by issuing stock or debt (such as loans or bonds or by selling a
stock). However, the main reason why most investors pick equity investments is
that they increase their likelihood of profiting from a company’s expansion and
success.</p><p class=“MsoNormal“>Moving forward, I
will be discussing risk management, what it is, and its importance. It is a
guide for you before thinking of investing in trading. </p>

This article was written by ForexLive at www.forexlive.com.

<p dir=“ltr“>This week we have two main risk events: the US CPI report and the <a target=“_blank“ href=“https://www.forexlive.com/news/what-to-expect-from-the-fomc-next-week-bofa-20221208/“>FOMC meeting</a>. These events will move the market in one way or the other depending on their outcomes. The current sentiment is bearish because after an incredible rally fuelled by worse than expected economic data and less hawkish Fed, the market recently leant on the defensive side as important reports surprised to the upside. </p><ul><li dir=“ltr“ aria-level=“1″><p dir=“ltr“ role=“presentation“>The <a target=“_blank“ href=“https://www.forexlive.com/news/us-november-non-farm-payrolls-263k-vs-200k-expected-20221202/“>NFP report</a> showed more jobs created and higher than expected wages with even a higher revision for the previous figures, which could indicate that inflation may be moderating but it may be harder for the Fed to return to their 2% target. </p></li></ul><ul><li dir=“ltr“ aria-level=“1″><p dir=“ltr“ role=“presentation“>The <a target=“_blank“ href=“https://www.forexlive.com/news/ism-november-us-services-565-vs-533-expected-20221205/“>ISM Services PMI</a> beat expectations and the prices paid sub-index remained high showing a resilience in the services sector. </p></li></ul><ul><li dir=“ltr“ aria-level=“1″><p dir=“ltr“ role=“presentation“>Finally, the <a target=“_blank“ href=“https://www.forexlive.com/news/us-november-ppi-74-vs-72-yy-expected-20221209/“>US PPI</a> beat expectations as well making the market fear a possible beat in the CPI report this week. The US CPI report may shape the FOMC reaction function.</p></li></ul><p dir=“ltr“>Going back to the chart. Below you can see how the price bounced from the lower band of the big yellow channel which has <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-confluence-20220318/“>confluence</a> with the lower band of the green and red regression channel. The price may now fall back to the 3937 level which is the area having a previous PoC (Point of Control) and VWAP (Volume-Weighted Average Price) and should provide some <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a>.</p><p dir=“ltr“>A 2-hours S&P500 E-mini Futures Chart on <a target=“_blank“ href=“https://tradingview.com“>tradingview.com</a></p><p dir=“ltr“>Looking ahead, the yellow channel may turn into a <a target=“_blank“ href=“https://www.forexlive.com/Education/chart-patterns-guide-20220125/“>bearish flag pattern</a> of the entire bear market. The breakout down of the strong 3920 level which acted as support 3 times and has confluence with the lower band of the yellow and the regression channel, may give the price momentum to resume the downtrend. So, watch out for the FOMC meeting on Wednesday as traders will be looking for trades after the event.</p><p dir=“ltr“>Watch the S&P 500 technical analysis video below to get a more detailed overview of the current state of the S&P500 and be prepared for the next moves. Click on the like button so you can get back to it if you need a refresh before the FOMC meeting.</p><p dir=“ltr“>Keep yourself updated on the latest developments in the markets following forexlive.com, and visit forexlive.com/technical-analysis to find more ideas and perspectives.</p>

This article was written by Itai Levitan at www.forexlive.com.

<ul><li>Prior 91.3</li></ul><p style=““ class=“text-align-justify“>US small business confidence rebounded last month but it is the 11th month running that the index stayed below its 49-year average of 98. Roughly 32% of business owners reported that inflation is their most important problem, down a point from October. About 51% of owners reported raising average selling prices on the month, up a point from October.</p>

This article was written by Justin Low at www.forexlive.com.

<ul><li>18 of 28 economists see a 50 bps rate hike</li><li>9 of 28 economists see a 75 bps rate hike</li></ul><p style=““ class=“text-align-justify“>Some views from UBS and Citi on the upcoming Swiss central bank meeting:</p><p style=““ class=“text-align-justify“>“In our view, the SNB will not know the outcome of the ECB meeting beforehand and may not want to risk the rate differential becoming too wide, also given the ECB could surprise with a larger hike. Also, if in doubt, we think the SNB would rather opt for the more hawkish choice.“ — Felix Huefner, UBS senior European economist</p><p style=““ class=“text-align-justify“>“The slowing economy, falling energy prices but also the shift in emphasis to balance sheet reduction speak against big rate hikes. However, interest rate differentials are already historically wide with fewer meetings available, the SNB has to make bigger steps to keep up. That is why we stick with our call for a 75 bps rate hike to 1.25%.“ — Christian Schulz, Citi economist</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>Just something to keep an eye out for amid the hectic schedule in markets this week. Berlin says that „weapons deliveries are not on the agenda“ though. From earlier:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/is-the-g7-starting-a-quiet-push-for-peace-in-ukraine-virtual-g7-leaders-summit-called-20221212/“ target=“_blank“ rel=“follow“>Is the G7 starting a quiet push for peace in Ukraine? Virtual G7 leaders‘ summit called</a></li></ul>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>This comes amid more tepid sentiment in broader markets, with European stocks keeping slightly lower while US futures aren’t doing much. S&P 500 futures are up 4 points, or 0.1%, as investors have little appetite to go running. Meanwhile, 10-year Treasury yields are down 1.6 bps to 3.55% – not really offering much as well.</p><p style=““ class=“text-align-justify“>The dollar was slightly higher earlier on but is now trading little changed for the most part, sitting more mixed across the board. The technical picture remains unchanged as outlined earlier <a target=“_blank“ href=“https://www.forexlive.com/news/dollar-slightly-firmer-in-a-tense-start-to-the-week-20221212/“ target=“_blank“ rel=“follow“>here</a>. It’s all about the key risk events coming up in the next few days, so this tense period of waiting could very well continue through to tomorrow. Here’s a quick snapshot of dollar pairs at the moment:</p>

This article was written by Justin Low at www.forexlive.com.

<p class=“MsoNormal“>The S&P500 has been on an uptrend for 2 months now, which got amplified by the miss in the US CPI in November and unleashed a FOMO type rally out of it. </p><p class=“MsoNormal“>This “bear market rally” recently run into a strong technical year-long trendline and got some news against the narrative that supported the rally. This narrative was based on bad economic data in hope of a less aggressive Fed and earlier pause in their tightening cycle. </p><p class=“MsoNormal“>S&P500 Awaiting Key US Data</p><p class=“MsoNormal“>Tuesday: US CPI.</p><p class=“MsoNormal“>Wednesday: FOMC Policy Decision</p><p class=“MsoNormal“>We saw the uptick in the unemployment rate, the US Manufacturing PMI in free fall and the Fed signalling a slower pace of hikes beginning in December with a 50 bps move instead of 75 bps that they adopted for four consecutive times. </p><p class=“MsoNormal“>Finally, the US CPI report in November surprisingly missed expectations and prompted the market to expect an earlier pause from the Fed as the recessionary signals from the leading indicators may be finally showing signs in the lagging ones. </p><p class=“MsoNormal“>Recently though, the market got hit by <a target=“_blank“ href=“https://www.forexlive.com/terms/e/economic-data/“ target=“_blank“ id=“ed1b62b3-5e5b-4a70-82dc-4a13e98beda8_2″ class=“terms__main-term“>economic data</a> that show a resilience in the economy. In fact, after the huge intraday rally caused by a less hawkish than expected Fed Chair Powell speech, the US NFP report surprised beating expectations on jobs created and on the inflationary side higher than expected wages with previous figures revised upwards. </p><p class=“MsoNormal“>Some days later the ISM Services PMI beat expectations with prices paid sub-index remaining high. Finally, the US PPI report beat expectations and may make the market to err on the defensive ahead of the CPI report on Tuesday. Below you can see all the catalysts in the 1-hour S&P500 Futures chart.</p><p class=“MsoNormal“>S&P500 Technical Analysis</p><p class=“MsoCaption“>Recent two weeks of price action and catalysts on the S&P500 on tradingview.com</p><p class=“MsoNormal“>On the technical side the price has run into a year-long downward trendline that acted as resistance and started a fall breaking the 2 month-long upward trendline as the risk sentiment soured after the NFP and ISM data. After rebounding from the support in the 3920-3940 area, the price retested the broken trendline and got rejected as the US PPI data beat expectations. </p><p class=“MsoNormal“>Looking at the daily chart below we can see that the 3920-3940 area is also the neckline of the head and shoulders pattern and a breakout to the downside may see further sell-off, but we may need to wait for the US CPI and FOMC to have a clearer picture. </p><p class=“MsoCaption“>Daily chart of the S&P500 on <a target=“_blank“ href=“https://www.tradingview.com“ target=“_blank“ rel=“follow“>tradingview.com</a></p><p class=“MsoNormal“>If the two risk events come out on the hawkish side, then we will most likely see the price breaking down and resuming the downtrend and at this point waving goodbye to the hoped Santa Claus rally. </p><p class=“MsoNormal“>Otherwise, in case the US CPI report again misses expectations and the FOMC policy decision comes out as expected or even on the less hawkish side, then we may see the price rally again and possibly reach the 4320 level. </p>

This article was written by ForexLive at www.forexlive.com.