QQQ NASDAQ 100 ETF, FED FORECAST, DOLLAR, USDJPY AND EARNINGS TALKING POINTS
Risk appetite is still elevated at the upper end of the spectrum, but the correction for the likes of the Nasdaq 100 and S&P 500 create a backdrop of instability
To determine where the markets are heading over the coming week, it is worthwhile to assess the dominant fundamental drive – and Fed speculation will recede this week
Aside from US monetary policy, China’s 4Q GDP release is top scheduled
Airlines have come a long way since early 2020 and enjoyed some great moments in 2021 before Omicron turned the market upside down. Investors are now eager to see what lies ahead in 2022.
Source: Bloomberg
Shares Airline American Airlines United States
The ASOS share price is down more than 50% over the past year. But a cocktail of robust results, board changes, brand acquisitions and a plan to join the FTSE 250 is increasing the odds of recovery.
Source: Bloomberg
Indices Shares ASOS Price Boohoo.com Share price
Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 17th January 2022. These are projected dividends and likely to change. IG cannot be held responsible for any changes made.
Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted o
CEO Alison Brittain strikes a positive tone as the FTSE 100 hotelier and restauranteur plans its recovery. But Whitbread shares remain 34% below their pre-pandemic point. And an inflationary spiral is not off the table yet.
Source: Bloomberg
Indices Shares Whitbread Inflation Premier I
This reporting season is expected deliver more strong earnings growth, and cap-off a year which profits grew by 40% a share, but the future looks less certain with the rate of growth tipped to plateau into 2022.
Source: Bloomberg
Indices Shares Commodities S&P 500
US RATES, S&P 500, NASDAQ 100 TALKING POINTS:
Yesterday saw both the S&P 500 and Nasdaq 100 put in strong bounces from support following early-session sell-offs.
US rates continue to run higher with even greater push on the shorter-end of the curve. This is a similar dynamic to what showed from late 2017 into late 2018. That scenario led to a pivot from the Fed, from a hiking stance in 2018 to a cutting phase in 2019.
Tomorrow brings CPI out of the US with the expecta
Tilray shares have spiked twice already; after its IPO in 2018 and during the meme stock craze early last year. But what are the long-term prospects for this divisive cannabis stock?
Source: Bloomberg
Shares Tilray Cannabis United States Medical cannabis Aphria
SPY S&P 500 ETF, QQQ NASDAQ 100 ETF, DOLLAR, USDJPY AND GBPUSD TALKING POINTS
The week opened to the momentum of Friday’s selloff for US equities with a QQQ bearish gap through support leading the way
By Monday’s close / Tuesday’s open, US equities fully reversed course with the SPY S&P 500 ETF posting a technically-clean reversal from channel support
For market motivation through the coming 24-48 hours, the focus intensifies on US monetary policy with hawkish Fed spe
By: Frank Kaberna, tastytrade. Jan 10, 2022
It feels like it was just yesterday people were worried about US Treasury rates staying at 0% forever… while it wasn’t yesterday, it was as recent as summer of last year that short-term interest rates were as close as they’ve ever been to negative.*
Now, the likelihood of multiple hikes to the Federal Funds Rate by the end of this year has people wondering just how big the chain reaction across the Treasury yield curve can be.
Pro
As the Eurozone’s annual inflation rate hits 5%, the European Central Bank remains firmly opposed to interest rate rises. But as energy prices continue to spike, the pressure to act could become unbearable.
Source: Bloomberg
Forex Commodities Inflation Euro Germany European Central Ban
Rising yields should help boost bank profitability, although JPMorgan’s stock price has struggled lately.
Source: Bloomberg
Chris Beauchamp | Chief Market Analyst, London | Publication date: Monday 10 January 2022
While headline i
FUNDAMENTAL FORECAST FOR THE US DOLLAR: NEUTRAL
While the DXY Index added +0.07%, most of its gains were given back by the end of the week following the middling December US jobs report.
Not only are there several ‘high’ ranked data releases due in the coming days, there are testimonies and speeches by several Federal Reserve policymakers that seem destined to introduce more volatility to financial markets.
According to the IG Client Sentiment Index, the US Dollar has a mixed
Uranium is unloved due to its affiliation with nuclear disasters. But with its spot price surging amid political unrest in global supply leader Kazakhstan, some uranium stocks could soar.
Source: Bloomberg
Shares Commodities Uranium Nuclear power Nuclear reactor Kazakhstan
Boeing: Ready for Takeoff or Turbulence Ahead?
Jan 5, 2022 | By:James Blakeway. Tastytrade
The first two trading days of 2022 were kind to both the airlines and Boeing (BA). This New Year rally comes after an understandably difficult two years in the commercial aviation sector. While Boeing and the U.S. Global Jets ETF (JETS) are far off their 2020 lows, they have a long road of recovery still ahead. Since the start of 2020, Boeing and JETS are facing negative returns in excess of 30%
JANUARY FX SEASONALITY OVERVIEW:
The first month of the year tends to see gains for commodities and commodity-linked currencies.
January is the best month of the year for gold prices in recent history.
Typical losses by the US Dollar tend to bode well for Australian, Canadian, and New Zealand Dollars.
The beginning of the month warrants a review of the seasonal patterns that have influenced forex markets over the past several years. For December, our focus
Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 10th January 2022. These are projected dividends and likely to change. IG cannot be held responsible for any changes made.
Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted o
AUD/JPY has spent 2021 in a wide trading range of 77.90 and 86.26.
While other central banks around the world have been withdrawing pandemic stimulus measures, both the Reserve Bank of Australia (RBA) and the Bank of Japan (BOJ) have maintained relatively loose policies. This is largely because inflation in both countries is not threatening economic stability.
The RBA will not meet again until early February and when they do, fourth quarter inflation data will be available.
The Glencore share price was one of the top risers on the FTSE 100 last year. And it could accelerate further into 2022 as the EV revolution gathers pace.
Source: Bloomberg
Indices Shares Commodities Glencore Cobalt Electric battery
US DOLLAR, US-CHINA TRADE WAR, TAIWAN, IRAN NUCLEAR DEAL, - TALKING POINTS
COVID-19, rising interest rates likely to magnify shocks of geopolitical risks
US-China tension and the upcoming US midterm elections are top of the list
Iran nuclear deal, precarious fundamentals could amplify market turbulence
STOCK MARKET 2022 OUTLOOK: GEOPOLITICAL RISKS MAY CURB INVESTOR ENTHUSIASM
Given the confluence of COVID-19 and rising interest rates, geopolitical shoc
After rising to $1200 per share, the electric vehicle behemoth now boasts a market cap of $1.2 trillion. But the veil of bullish numbers is hiding headwinds for its billionaire CEO.
Source: Bloomberg
Shares Tesla, Inc. Ford Motor Company Car China Electric vehicle
2021 saw a record number of SPAC and IPO launches across US stock exchanges. But half are trading below their initial prices. And with Virgin Orbit already down 20%, could the lustre of new listings be losing its appeal?
Source: Bloomberg
Shares Special-purpose acquisition company Virg
The below commentary highlights some of the key factors affecting US monetary policy which should in turn dictate future price movements for the US dollar.
Source: Bloomberg
Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Tuesday 07 December 2021