Author: Daniel Chang

The U.S. dollar retreated slightly from its recent highs on Tuesday, while weaker regional inflation data weighed on the euro ahead of the European Central Bank’s upcoming policy meeting. As of 04:20 ET (08:20 GMT), the Dollar Index, which tracks the greenback against a basket of six major currencies, remained relatively stable at 102.915, pulling back from the previous session’s two-month peak. Despite this dip, the index is still up 2.3% over the last month, ending a three-month losing streak. U.S. Dollar Softens Amid Fed Rate Speculation The dollar’s recent strength has been driven by employment and inflation data that…

Investor confidence has reached its peak since mid 2020, according to Bank of America’s (BofA) October Global Fund Manager Survey. The report shows a significant surge in optimism, driven by expectations of U.S. Federal Reserve interest rate cuts, economic stimulus measures in China, and the possibility of a “soft landing” for the global economy. BofA noted that investor sentiment saw its largest boost since June 2020, with the bank’s Bull & Bear Indicator rising to 7.1. While the rise in optimism is notable, the indicator still falls short of the critical “sell signal” threshold of 8.0, indicating some remaining caution…

The competition among Big Tech companies to reach a $4 trillion market cap is heating up, according to a recent report by Wedbush analysts. In a note released Wednesday, the firm identified Nvidia, Apple, and Microsoft as the main contenders likely to achieve this milestone within the next 6 to 9 months. Wedbush highlights Nvidia’s pivotal role in the ongoing AI revolution, stating that “the AI party is just getting started.” The firm believes that Nvidia’s dominance in data center AI driven spending, particularly for GPUs running generative AI applications, puts the company at the forefront of this race. Apple,…

Wall Street saw mixed reactions following the release of September’s U.S. inflation data, which came in slightly above expectations and sparked speculation about the Federal Reserve’s future actions. The Consumer Price Index (CPI) showed a 2.4% year-over-year increase for September, compared to the forecasted 2.3%, but lower than the 2.5% reported in August. On a monthly basis, the CPI rose 0.2%, just above the expected 0.1%. The latest CPI figures have raised questions about whether the Fed will adjust its approach to interest rates in the coming months. While inflation remains a concern, some analysts believe the current data may…

The U.S. dollar fell against the Japanese yen on Thursday as fresh economic data revealed a slowdown in the labor market and a slight rise in consumer prices, indicating the Federal Reserve might maintain its current stance on interest rates. The U.S. Labor Department reported a 0.2% increase in the Consumer Price Index (CPI) for September, while the annual CPI growth was 2.4%, marking its lowest annual increase since February 2021. Economists had expected a 0.1% monthly increase and a 2.3% annual rise. Additionally, the number of Americans filing for unemployment benefits surged last week, partially due to disruptions from…

In its recently published Global Market Outlook, UBS has outlined five potential scenarios that could significantly impact the global investment landscape by 2025 and 2026. 1. A Republican Victory and the “Red Sweep” The first scenario envisions former President Donald Trump reclaiming the White House, with Republicans gaining control of both chambers of Congress, though without a filibuster-proof majority in the Senate. While fiscal policy for 2025 is already largely determined by existing agreements, major shifts could occur post-2025. Many of the tax cuts introduced in 2017’s Tax Cuts and Jobs Act (TCJA) are set to expire by the end…

Beijing – Oil prices dropped by more than $1 per barrel, falling over 1.5% early Monday, as weaker-than-expected inflation data from China and uncertainty surrounding Beijing’s stimulus measures raised concerns about future demand. By 0020 GMT, Brent crude fell by $1.26 (1.59%) to $77.78 per barrel, while U.S. West Texas Intermediate (WTI) dropped $1.20 (1.59%) to $74.36 per barrel. Although tensions in the Middle East, including a possible Israeli response to an Iranian missile attack earlier in the month, had the potential to disrupt oil supplies, market attention remained focused on China’s economic outlook. The U.S. government has urged Israel…

Citi analysts suggested in a recent note that the Federal Reserve is likely to proceed with a rate cut during its November meeting, despite conflicting economic signals, including stronger-than-anticipated inflation data. The bank’s analysts pointed out that recent labor market data had initially led the markets to expect rate cuts of 25 basis points in upcoming meetings, with some speculating on potential cuts of 50 basis points. However, a higher-than-expected 0.3% increase in the core Consumer Price Index (CPI) has complicated the outlook, sparking discussions of a more cautious approach by the Fed. Citi analysts also noted their skepticism about…

Strategas analysts suggest that the S&P 500 is likely to experience more modest returns in the third year of its current bull market, which is set to reach its second anniversary on October 12, 2022. Historically, third-year returns tend to be lower compared to the gains seen during the first two years. The research firm highlighted that average returns in the third year of a bull market have typically been around 4.8%, compared to a 10.9% increase in the second year and a robust 46.9% surge in the first year. While the present market cycle still appears relatively early in…

As Google (NASDAQ: GOOGL) faces increasing scrutiny from the U.S. Department of Justice (DOJ) in an ongoing antitrust trial, analysts are discussing the implications of a potential company breakup. This week, analysts from JPMorgan and Bernstein shared their thoughts on the DOJ’s initial remedy proposal, filed on October 8. The framework focuses on four main areas: search distribution, data handling, artificial intelligence (AI), and advertising strategies. JPMorgan’s analysts noted that the proposal was largely expected, but warned it could lead to negative public perceptions and “headline risks.” They highlighted that the DOJ might seek structural changes to Google’s key operations,…