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Tuesday, 19 November 22:18 (GMT -05:00)



Stock and commodities markets

Will USA Manage To Prevent Stock Market Crash?


The U.S. Federal Reserve has eased their rhetorics in order to avoid another stock market crash. International experts are now trying to predict the possible consequences of the decision made by the American financial regulator, especially form the stand point of international investors. 
 
It is interesting to note that the Fed revised the situation in the American economy in May to come to the conclusion that the national economy had recovered from the slowdown and started growing. The experts don't deny the possibility of another retracement period in the national stock market, which means they should take extra steps to back the market stability and avoid another market crash.
 
As you probably know, the Fed implemented 4 interest rate hikes last year. At this point, the regulator's representatives claim that they are not planning more interest rate hikes this year. Moreover, they even don't deny an interest rate cut in 2020.
 
Also, the regulator denied the idea of reinvesting a certain share of the money gained from the expired bonds. The balance contraction will end in October. This means that at least one means of monetary toughening will cease to exist.
 
Market participants are positive about the prospects. The derivatives segment is expected to end up with easing and interest rate cuts by the end of 2019, with a chances of over 50%. It's interesting to note that such expectations often anticipate the regulator's decision. Those expectations are often reflected in the fed funds rate - a futures index.
 
Fed's QE May Back Stronger Economy
 
The essence is simple. Amid interest rate cuts, favorable lending conditions are created. Thanks to the so-called multiplier effect, the economy may develop more actively. Over 50% of the Americans invest in stocks in a regular basis, including various retirement plans. Any stock market crash will definitely affect the consumer sentiment. That's why the regulator keeps watching not only the labor market and inflation, but also the financial conditions.
 
President Trump has been criticizing the Fed for relatively low interest rates. However, both the president and the regulator are pursuing the same goal - a stronger and more stable economy. Int's interesting to note, that S&P 500 gained over 17% during the first 5 months of the year, thus setting an new all-time high. However, the market is not going to grow exponentially even after the good news, especially as the trade war between the USA and China is still going on.
 
The bottom line is that given the current state of affairs, the summer is likely going to be rather volatile for the U.S. stock market since the Fed still has a lot of tools under their belt to back the risky assets. Even if the market situation worsens, the Fed may start a series of verbal interventions, followed by interest rate cuts. So, the current actions made by the Fed seem to favor the market, and the summer time may become another period of cheap money.

 

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Brent Prices Drop Down To $61/b

The concerns over the global demand for crude oil are getting back to the market again. The current trading week has been a week of discounts. Earlier today, Brent oil saw its price drop down to 61 dollars per barrel. The WTI price dropped all the way down to 56 dollars per barrel. The supply side has got an upper hand.
Publication date: 27 September 04:52 AM

Gold Prices Are Getting Stable After Monday's Rally

Last week was rich in the information about various financial markets, which could exert downward pressure on gold prices. Strange as it may seem, the situation in the ore market was relatively calm. Eventually, the week closed in the green zone. Those gains mainly had to do with Friday's gold rally. International traders and investors reacted to the information about another global economic slowdown coupled with the trade war between the United States and China as well as the current situation in the Middle East, and started loading up on gold as a safe-haven asset, which eventually pushed the prices higher. 

Publication date: 24 September 05:15 AM

Oil Prices Have Made The Biggest Rally In History

Gold, yen, and oil currencies are getting more expensive. The strike came for an unexpected direction. Saudi Arabia's oil facilities were attacked, which increased geopolitical risks in the region and simultaneously undermined the global oil supplies. That was basically the reason why crude oil prices made the biggest rally in history but then moved back a bit and are still trading over 10% higher relative to the start of the trading session. 
 
Publication date: 16 September 03:26 AM

iOS13 Outshines iPhone

For Apple fans, September has been a special month from many years. This is the time when Apple introduces the biggest innovations and the latest products destined to be best sellers for the next 12 months. This time, everything is likely going to be the same. In just a couple of days, on September 10th, we are to witness another Apple event.
 
Publication date: 05 September 03:28 AM

US-China Trade War Makes Oil Prices Drop

The previous trading week wasn't an exiting one. The oil prices grew in the first part of the week while trying to make up for the losses of the previous week. Still, the second half of the week turned out to be a bearish one. WTI oil prices dropped below 55 dollars per barrel while brent oil dropped down to 61 dollars per barrel. Yet, the bearish momentum is still there.

Publication date: 04 August 08:33 AM

Gold Prices At Highest Levels Since 2013

The recent statements made by the governors and presidents of the world's leading central banks, including the Fed and the ECB, eventually resulted ingold prices making it over 1400 dollars per troy ounce. This means that the current price of gold is the highest one over the last 6 years. So, the bull market of gold is underway.
Publication date: 03 August 04:17 AM

Middle East Tensions Support Oil Prices

The currenty trading week has been controversial for the international market of crude oil. Chances are, the market is going to be relatively neutral throughout the rest of the week. Brent oil is trading around 63,50 dollars per barrel while WTI costs 56 dollars per barrel.
Publication date: 30 July 11:07 AM

Is Economic Decline In USA Inevitable?

The NY Fed model points out to the fact that the probability of another recession in the American economy has increased all the way up to 33%. Over the last 50 years, such signals have almost always bee followed by recessions.
 
Publication date: 13 July 08:39 AM

Masterforex-V Names Biggest Stock Exchanges

Stock exchanges have been operating worldwide for many decades. They are specific financial institutions  or marketplaces that operate to let people and companies invet in various stocks and other securities. Those are the stocks issued by various companies representing various industries - from mining to services. These days, you can invest in stocks, indexes, bonds, options, and other securities.
 
Publication date: 17 May 11:57 AM

Masterforex-V Names SSE's 20 Biggest Companies

There are several cities in the world that can be called centers of business and financial activity. Shanghai, China, is definitely one of them. This is the home to China's biggest stick exchange. Shanghai Stock Exchange (or SSE for short) is the world's 4th biggest stock exchange in terms of market cap and number one in terms of the pace of growth.

Publication date: 17 May 11:23 AM