Author: Daniel Chang

According to a report from Bank of America (BofA), the S&P 500 appears overvalued based on 19 out of 20 valuation metrics, signaling limited long term growth potential for the index. BofA’s analysis, using Price to Normalized Earnings as a predictive metric for 10-year returns, forecasts an annual price increase of just 1-2% over the next decade. In contrast, the equal weighted S&P 500 index where each stock has equal influence projects a slightly stronger return of around 4-5%, suggesting better prospects for smaller stocks compared to the largest firms. “This valuation trend isn’t new,” noted BofA strategists, led by…

Brazilian Finance Minister Fernando Haddad has canceled his planned trip to Europe this week as he faces mounting pressure to address fiscal concerns at home. The Finance Ministry announced on Sunday that Haddad will remain in Brasilia at the request of President Luiz Inácio Lula da Silva to focus on pressing domestic issues. Haddad’s decision to stay in Brazil comes amid investor anxiety over the government’s delay in presenting promised spending-cut measures. Last Friday, the U.S. dollar reached its highest level against the Brazilian real in spot trading since May 2020, reflecting market concerns over the lack of clear fiscal…

Investment advisory firm BCA Research is encouraging investors to adopt a long position on the U.S. dollar, emphasizing its role as a protective asset amid ongoing geopolitical uncertainties. In its latest report, BCA highlights how increasing global tensions are positioning the dollar as a safe haven. BCA’s Chief Geopolitical Strategist, Matt Gertken, suggests that regardless of the upcoming U.S. election outcome, American trade and foreign policy are likely to shift in a more assertive direction, contributing to global instability. “The international political landscape is becoming more volatile,” Gertken notes, explaining that this trend is likely to continue reinforcing the dollar’s…

With the U.S. presidential election drawing near, financial markets remain tense, as experts suggest that the outcome may substantially impact certain sectors, particularly Big Tech. Wedbush analysts have expressed concerns about a potential Trump win, particularly its implications for global tech investments. They believe it could heighten tensions in the U.S.-China tech dispute, potentially leading to increased tariffs and new disruptions. “A shift in tariffs and a more aggressive stance on China could disrupt the supply chain, impacting companies like Nvidia (NASDAQ) and possibly leading to Chinese retaliatory measures against firms such as Apple and Tesla,” noted Dan Ives and…

Asian currencies gained on Monday as the dollar eased from recent highs following weaker U.S. labor data, with market focus shifting toward the U.S. presidential election and the upcoming Federal Reserve meeting. This week’s key events include the Reserve Bank of Australia (RBA) meeting and China’s National People’s Congress (NPC) session, which is expected to reveal further guidance on fiscal stimulus. Asian currencies benefited from the dollar’s downturn, as both the dollar index and its futures fell around 0.6% in Asian trading. The greenback’s slip followed softer than expected U.S. nonfarm payrolls data, indicating a cooling labor market. Uncertainty over…

The S&P 500 rose on Tuesday, Election Day, driven largely by gains in technology stocks. As of 4:00 p.m. ET (21:00 GMT), the Dow Jones Industrial Average gained 427 points (1%), the S&P 500 rose 1.2%, and the NASDAQ Composite climbed 1.4%. Tight Presidential Race between Trump and Harris Investors are closely watching the tight race between Donald Trump and Kamala Harris. Polls indicate the results could shape U.S. trade and tax policies for the next four years. While Trump was gaining ground in earlier polls, recent data shows Harris closing in. Trump’s platform, including inflationary policies and stricter tariffs…

The U.S. dollar declined on Tuesday as Americans cast their votes, with election results expected to shape the dollar’s direction in the near term. Polling suggests a close race between Republican candidate Donald Trump and Democratic candidate Kamala Harris. Currency fluctuations could intensify if the winning presidential candidate’s party gains control of Congress. Despite some betting markets, including PredictIt and Polymarket, showing improved odds for Trump, the dollar continued to slide. “We might be seeing some position adjustments; there’s a lot of caution out there,” noted Steve Englander, head of global G10 FX research at Standard Chartered Bank’s New York…

British shop prices experienced their fastest drop in over three years this October, according to the British Retail Consortium (BRC). However, this trend could face reversal following the upcoming budget announcement by Finance Minister Rachel Reeves, the BRC cautioned on Tuesday. Shop prices fell by 0.8% over the past 12 months, marking the steepest decline since August 2021 and a sharper fall than September’s 0.6% decrease. This month’s numbers continue a trend, with eight of the last nine months seeing a slowdown in price growth. Food prices in stores rose by 1.9%, while non-food items saw a steady decline at…

Tokyo – Japan’s Finance Minister, Katsunobu Kato, emphasized on Tuesday that the government remains highly alert to fluctuations in foreign exchange rates, particularly those influenced by speculative trading. “We are committed to closely monitoring exchange rate movements, especially those driven by speculative actions, with heightened vigilance,” Kato stated at a regular press briefing. The yen has recently hit a three-month low, partly due to uncertainty after Japan’s ruling party lost its parliamentary majority. This shift has fueled concerns that political instability might delay the Bank of Japan’s efforts to gradually reduce its long-standing monetary stimulus. In a separate statement on…

New York – The dollar reached a three-month peak against the yen on Tuesday, though it held steady against most other major currencies. Investors appeared cautious ahead of next week’s U.S. election and a wave of upcoming economic data releases. The yen has been pressured recently due to Japan’s ruling coalition losing its parliamentary majority, raising questions around Japan’s political and economic strategies. By late Tuesday, the dollar had gained 0.12%, standing at 153.47 yen. The Bank of Japan (BOJ) is expected to maintain its current rate policy in its announcement on Thursday. Key economic indicators expected this week include…