Author: Daniel Chang

The U.S. dollar surged to its highest levels in two months on Wednesday as investors braced for the release of the September Consumer Price Index (CPI) report. The greenback continued its upward momentum after the release of the Federal Reserve’s September meeting minutes, which revealed that most policymakers supported a significant 50-basis point rate cut. Despite the recent Fed minutes, traders remain cautious, as the robust nonfarm payroll data from last week has changed the market’s expectations regarding future rate cuts. Analysts believe the central bank may not continue to ease its policy as aggressively. “The strong U.S. jobs report…

The U.S. dollar remained stable near a seven-week high on Monday as traders reevaluated their positions following robust employment data last week, while heightened geopolitical concerns in the Middle East fueled demand for safe-haven assets. The U.S. labor market report for September showed a significant increase in nonfarm payrolls, the highest in six months, alongside a drop in unemployment and steady wage growth. This data led financial markets to temper expectations for aggressive U.S. interest rate cuts. For traders looking to capitalize on these market shifts, understanding how to get into proprietary trading can be a crucial step Investors now…

Global markets started Tuesday on a cautious note as investors remained wary of escalating tensions in the Middle East, while oil prices stayed high. Meanwhile, anticipation builds for China’s market reopening after an extended holiday period. In early Asian trading, the yield on the U.S. 10-year Treasury note held steady above 4%, reflecting strong U.S. labor market data that have tempered expectations for aggressive interest rate cuts by the Federal Reserve. On Monday, Hezbollah launched rockets at Israel’s northern city of Haifa, and Israel appeared prepared to intensify its operations in Lebanon. The heightened risk of a broader regional conflict…

Goldman Sachs has revised its gold price projection for early 2025, raising it to $2,900 per troy ounce (toz) from the previous forecast of $2,700/toz. The upward adjustment is attributed to two main factors. The first reason is the expectation of quicker reductions in short-term interest rates across Western economies and China. According to Goldman Sachs, the market has yet to fully account for the impact of these rate cuts on gold-backed ETFs in Western markets, which could potentially see a steady increase in holdings. The second driving factor is the continued strong demand from emerging market central banks, especially…

NEW YORK (Reuters) – The U.S. dollar gained momentum on Monday following comments by Federal Reserve Chair Jerome Powell, who adopted a more cautious stance on the economic outlook. His remarks led traders to scale back expectations of another aggressive rate cut at the Fed’s upcoming meeting. Powell highlighted that recent adjustments to key economic indicators, including growth, savings, and personal income, have alleviated some of the risks that had previously concerned the central bank. He further noted that the Fed anticipates implementing two more interest rate reductions, totaling 50 basis points, by the end of the year provided economic…

Safe-haven currencies saw gains on Tuesday after Iran launched missile strikes toward Israel, triggering a response from the United States. Meanwhile, the U.S. dollar also strengthened, buoyed by signs of resilience in the American job market. The missile attack came as retaliation against Israel’s military actions targeting Hezbollah forces in Lebanon, a group allied with Tehran. In reaction, U.S. President Joe Biden ordered the military to support Israel’s defense and intercept any projectiles targeting the country, according to the White House National Security Council. “The market has mostly overlooked the Middle East conflict in recent weeks, but direct clashes between…

Tesla’s (NASDAQ) shares dropped over 3% on Wednesday following the announcement of its Q3 2024 delivery figures, which totaled 462,890 vehicles. The company reported a production output of 469,796 vehicles during the third quarter, comprising 443,668 units of Model 3/Y and 26,128 from its other models, including the Model S, X, and Cybertruck. In addition, Tesla deployed 6.9 GWh of energy storage products. Although the delivery numbers were in line with market projections, Barclays analysts noted that many investors were anticipating a more substantial beat, causing the stock to react negatively. Production figures slightly exceeded forecasts as well, but concerns…

Goldman Sachs analysts raised the possibility that their 6000-point price target for the S&P 500 might be “too low,” indicating a potentially stronger rally for U.S. equities as 2024 progresses. This insight, shared in a client note on Wednesday, suggests even more bullish expectations despite current market fluctuations. The bank predicts a robust rally beginning on October 28, although they caution that the short-term outlook remains uncertain, with elevated volatility expected over the next few weeks. Goldman warned that the market could overreact to daily news and headlines, making it vulnerable to sudden swings. Goldman Sachs pointed out a significant…

Oil prices saw a sharp rise of more than $3 per barrel on Thursday as concerns over escalating tensions in the Middle East fueled worries about potential disruptions to global oil supplies. Brent crude futures jumped $3.72, or 5.03%, to close at $77.62 a barrel, while U.S. West Texas Intermediate (WTI) crude climbed $3.61, or 5.15%, reaching $73.71 per barrel. Both benchmarks hit their highest levels in a month, with Brent touching an intraday high of $77.89 and WTI peaking at $73.97. The spike in prices comes amid fears that the ongoing conflict could spread, potentially impacting key oil infrastructure…

UBS forecasts only a 6% increase for global equities by the end of 2025, based on its latest outlook for the MSCI All-Country World Index. This benchmark, which tracks both developed and emerging markets, is expected to reach a level of 900 by 2025. UBS’s forecast is shaped by several important factors. One factor is that current economic indicators are showing a mixed picture. UBS’s risk appetite index reveals that risk assets are performing in line with overall economic momentum. Currently, U.S. GDP growth is at a modest 1%, but other indicators, such as the Atlanta Fed’s Nowcast, suggest growth…