WHAT IS CONTRACTIONARY MONETARY POLICY?
Contractionary monetary policy is the process whereby a central bank deploys various tools to lower inflation and the general level of economic activity. Central banks do so through a combination of interest rate hikes, raising the reserve requirements for commercial banks and by reducing the supply of money through large-scale government bond sales, also known as, quantitative tightening (QT).
It may seem counter-intuitive to want to lower
Crude oil prices are on pace for the worst month since November. Global growth expectations for 2022 are falling as OPEC+ continues restoring supply. Is more pain ahead for WTI?
Source: Bloomberg
Commodities Petroleum Price of oil OPEC WTI Inflation
BP shares have fallen sharply in recent days as the FTSE 100 oil major recalibrates its investments.
Source: Bloomberg
Indices Shares Commodities BP Petroleum Price
Australian dollar falls against US dollar as markets shift to risk-off; the 2022 BRICS Summit set to kick off today in virtual format and AUD/USD looks set for further weakness above key trendline support.
Source: Bloomberg
Forex United States dollar Australian dollar BRICS United Stat
Household budgets are being tested again with another uptick in inflation, this time to 9.1% year-on-year.
Jeremy Naylor | Writer, London | Publication date: Wednesday 22 June 2022
Inflation continues to rise
Inflation data out today comes at a very difficult time for the economy and for us consumers as we continue to feel the pressures of upward prices that we've been seeing, w
American consumers are paying a lot more than usual for gasoline, but economists don’t lay the blame on price gouging.
The market is driving up prices because D.C. politicos banned crude oil imports from Russia—the third-largest oil producing nation—in the wake of its invasion of Ukraine.
But President Joe Biden and a lot of members of Congress don’t see it that way.
“American oil and gas companies should not—should not exploit this moment to hike their prices to raise profits,” B
Coming after last week’s 5% sell-off for the S&P 500, US equity markets are attempting to recover some of its losses after the Juneteenth holiday break.
Source: Bloomberg
Forex Indices Commodities Dow Jones Industrial Average Gold United States
EUR/USD has recovered from a test of the lows; yen depreciation sees EUR/JPY eyeing new highs and momentum might be the key but can EUR/USD break higher?
Source: Bloomberg
Forex Shares EUR/USD Market sentiment Euro EUR/JPY
The RBA is expecting inflation to peak at around 7% in December and begin to cool down early next year so why is the RBA's Governor Lowe positive that a recession is unlikely for Australia?
Source: Bloomberg
Inflation Central bank Recession Australia Demand CFD
As the recession concern spreads across the financial market, which sectors and stocks have the potential to demonstrate their resilience? Today we are looking at three ASX stocks.
Source: Bloomberg
Indices Shares Price Woolworths Supermarkets Australia and New Zealand Banking Group Di
Rolls-Royce shares could be an undervalued FTSE 100 opportunity after Morgan Stanley judges them ‘woefully mispriced.’
Source: Bloomberg
Indices Shares Roll-Royce Revenue Investment FTSE 100
Charles Archer
The below-average volume during the shortened trading week saw the US futures moving higher, driving some expectations of a near-term reprieve following the recent weeks of sell-off.
Source: Bloomberg
Forex Indices United States AUD/NZD S&P 500 Central bank
The sell-off in Wall Street took a breather last Friday as outperformance in growth sectors did much of the heavy-lifting, with the Nasdaq up 1.43%.
Source: Bloomberg
Forex Indices Market sentiment Bank of Japan United States USD/JPY
FTSE 100 Tesco shares remained broadly flat after solid Q1 results were punctured by economic warnings from CEO Ken Murphy.
Source: Bloomberg
Indices Shares Tesco FTSE 100 United Kingdom Aldi
Charles Arche
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Source: Bloomberg
Forex United States dollar Currency Bank of Japan Pound sterling Federal Reserve
Global financial markets moved diligently to price in the latest action from the Federal Reserve last week when Mr. Powell’s FOMC raised the US benchmark rate by 75-basis-points. The jumbo rate hike tempered inflation expectations, and perhaps returned some credibi
Stocks have struggled during the first half of 2022, but the second half doesn’t appear to offer much relief from fears about high inflation, slowing growth and falling earnings.
Source: Bloomberg
Shares Stock Inflation Central bank Stock market Investor
Sainsbury’s shares are down 25% year-to-date. But the FTSE 100 company could be an attractive buying opportunity for private equity firms.
Source: Bloomberg
Indices Shares Commodities Sainsbury's FTSE 100 Private equity
Central Banks: Market Recap
1. RBA Market Recap
The RBA have made it clear that the inflation fight is on, hiking 0.5%; AUD/USD leapt half a cent on the news, but is struggling to hold the gains and the RBA have joined the race. Will AUD/USD be the beneficiary?
Source: TradingView
The Australian dollar flew higher after the RBA joined the jumbo rate hike brigade by lifting the cash rate by 50 basis points to 0.85% from 0.35%.
The market had mostly been
The knee-jerk rally coming after the FOMC meeting has proven to be short-lived as sentiments quickly took a turn yesterday, following the surprise hike from the SNB.
Source: Bloomberg
Forex Indices Inflation Bank of Japan Central bank Euro
Dear IG Community,
Please find below the changes of trading hours for Juneteenth bank holiday (US)
All times are UK Time. Monday 20th June
Brent Crude and Gas Oil futures close early at 6.30pm.
US index futures close early at 6pm. We’ll make an out-of-hours price on Wall Street, US 500, US Russell 2000, FANG Index and US Tech 100 from 6pm until the futures reopen at 11pm.
US equities and soft commodities are closed.
US interest rates close early at 6pm.
U
Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 20th June 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 on a