Market news

Daily finance news update

OPEN LIVE ACCOUNT

Bullish stocks ignore vaccine woes

April 14,2021 06:39:19

Overnight Headlines

*USD hits three-week lows as bond yields fall

*Global stocks and Bitcoin make fresh record highs

*RBNZ stands pat on policy as expected, NZD leading major

*First quarter bank earnings in focus

USD fell to three-week lows after traders looked through the leap in US inflation and backed the Fed’s stance on the temporary nature of rising prices. The pause in the rollout of the J&J vaccine no doubt helped too, which may mean the reopening of the world’s biggest economy risks being delayed. USDX has broken out of its recent range and down through the 92 support level, so now targets 91.31, the mid-March lows.

US equities again hit the heights with the broad S&P500 making new highs, while the Nasdaq, laden with technology and stay-at-home stocks outperformed the Dow and its cyclicals. Asian stocks are positive as markets take the negative vaccine news in their stride.

Market Thoughts

The big jump in the widely anticipated US CPI data was not a surprise as the market breathed a big sigh of relief the data wasn’t at the highest end of estimates. Traders appear to be backing the Fed’s conciliatory words for now, or at least acting on a “buy the rumour, sell the fact” basis with the data.

This is important for traders going forward as the Fed have been arguing that the numbers will drop back towards their 2% target fairly quickly and this is what the market is going with for now. But if the economy continues pushing out blowout data with house prices and the job market especially on an upward path, then the world’s most important central bank may have to change course, which may ultimately push the USD higher.

Charts of the Day

Bitcoin has broken out to the upside in textbook fashion! We’ve seen a series of higher highs and higher lows since January with the 50-day moving average supporting prices all along the way. The $60,000 mark offered some resistance as prices formed a bullish ascending triangle but BTC has now pushed above $64,000. The public offering of Coinbase is adding to the euphoria of cryptos in general. We are in unchartered territory once again which means in this scenario, round numbers are often the target, so $70,000!

Bank earnings will be in focus with Goldman Sachs, JP Morgan and Wells Fargo all reporting ahead of the US open today. EPS for the latter is expected at $0.68, up from $0.01 in the same period a year earlier and revenues of $17.5 billion, down from 1.5% from the fourth quarter.

Technicals show us that Wells Fargo is consolidating near the highs and trading above the 20-day and 50-day moving average. Strong support comes just below $38 at $37.82 with resistance at $41.50 – the post pandemic peak. Momentum indicators have turned lower after the sell off yesterday but have eased from the March highs. Bumper results should see us challenge and potentially break to new ground.

Jamie DuttaAnalyst / Trader

"With extensive experience as a full time trader and financial market commentator, I have worked as a trader in top tier investment banks and trading houses, including Morgan Stanley and GAIN Capital trading Forex, Index derivatives. and Bonds. I combine technical analysis with a deep fundamental knowledge to identify trade set-ups. My real life experience allows me to break down the complexities of financial jargon and trading. This means everyone can better understand the compelling forces of greed and fear which are realised every day in countless ways across markets."

Vantage does not represent or warrant that the material provided here is accurate, current, or complete, and therefore should not be relied upon as such. The information provided here, whether from a third party or not, is not to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any financial instruments; or to participate in any specific trading strategy. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. We advise any readers of this content to seek their own advice. Without the approval of Vantage, reproduction or redistribution of this information is not permitted.

PEMBUKAAN AKUN CEPAT & MUDAH

  • Daftar

    Pilih tipe akun dan ajukan aplikasi pendaftaran Anda.

  • Danai

    Danai akun Anda dengan menggunakan beragam cara pendanaan.

  • Perdagangan

    Akses 300+ CFD instrumen pada semua kelas aset di MT4/MT5

Sangat mudah untuk membuka akun trading Forex dan CFD.
Selamat datang dalam semesta trading!
BUKA AKUN LIVE