Sri Lankan President Escape. Elon Musk wants to end his Twitter deal :: InvestMacro

by just forex

The US Labor Department reported Friday that US employers added 372,000 jobs in June, 100,000 more than economists had expected. Meanwhile, the unemployment rate remained at 3.6% for the third month. With the stock market closed on Friday, the Dow Jones (US30) was down 0.15% (+1.95% for the week), and the S&P 500 (US500) lost 0.08% (+3.13% for the week). The Nasdaq Technology Index (US100) rose 0.12% on Friday (+5.71% for the week). All three indicators ended the week in the black.

Economists believe that the Fed has kept interest rates “too low” for too long, and its attempts to catch up now may derail the recovery from last year’s coronavirus pandemic.

The reporting season for the second quarter begins this week. Banks usually open reporting season with their global view of economic activity. Analysts expect weaker reports for the second quarter compared to the first. Also, strategists say an economic slowdown combined with weak corporate earnings could send the S&P 500 down at least another 10%, doubling the losses that have already sent the benchmark down 18% since the start of the year. While the Fed said it was confident of achieving a so-called “soft landing” by lowering inflation without disrupting the economy, some investors believe that the sharp decline in stocks this year indicates that some economic slowdown has already begun in asset prices.

Elon Musk filed a Form 13D/A announcing his intention to terminate his agreement to purchase Twitter at $54.20 per share. The letter cites a “material breach of several provisions” of the merger agreement and the potential for a “material adverse effect”. Musk expressed concern that Twitter was running out of spam or bot accounts on the platform and Twitter’s decision to fire two members of the administration after the deal was completed.

Most stock markets in Europe rose on Friday. Germany’s DAX (DE30) is up 1.32% on Friday (+0.86% for the week), France’s CAC 40 (FR 40) is up 0.44% (+0.82% for the week), Spain’s IBEX 35 (ES35) is 0.27% cheaper ( – 1.53% for the week), the British FTSE 100 Index (UK100) rose 0.10% (+0.38% for the week).

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The weakness of the EUR and rising inflation are very worrying ahead of new data on consumer prices in European countries. Inflation in more than six countries in the eurozone, including Spain, is already double digits, and core CPI is at its highest level in decades. In the face of high inflation, economic indicators for the region began to deteriorate rapidly, so the European Central Bank needs to act more decisively, otherwise the euro / US dollar exchange rate will fall below 1.

Russia continues to wage war with Ukraine without any sign of compromise or negotiation, leaving the prospect of a protracted conflict that could keep inflationary pressures alive. The resignation of British Prime Minister Boris Johnson opens the door to more uncertainty in the UK as the battle to replace him begins.

Oil closed last week negative, although it recovered on Thursday and Friday. But analysts note that futures have seen a decrease in short positions and an increase in long positions. Crude oil markets remain under pressure at the moment due to concerns about sharp interest rate increases by the Federal Reserve and the impact it could have on the US economy and energy demand. But US gasoline prices are stabilizing above $4.50 a gallon, with no sign of demand falling.

Asian markets were trading higher last week. Japan’s Nikkei 225 (JP225) is up 1.65% over the week, Hong Kong’s Hang Seng (HK50) is up 0.16% over the week and Australia’s S&P/ASX 200 (AU200) is up 2.11% over the week.

Sri Lanka’s president has fled the country after a mob of protesters stormed the presidential palace in Colombo. Thousands of protesters stormed the president’s home and office, as well as the prime minister’s official residence, on Saturday, speaking out against their failure to tackle the devastating economic crisis. COVID-19 has dealt the first blow to Sri Lanka’s economy: tourism has plummeted, and economic indicators are beginning to deteriorate rapidly. Rising national debt and high oil prices banned the import of chemical fertilizers last year, hurting agriculture. Then the fuel crisis began, gasoline and gas were rationed, people could no longer cook, not to mention going to work or school, etc. The government has asked people to work from home and closed schools to save fuel. The overall inflation rate in the country of 22 million people reached 54.6% last month, and the central bank warned that it could rise to 70% in the coming months. The parliament speaker said the Sri Lankan president will formally resign on July 13. The prime minister also said he would resign to allow an all-party interim government to take power.

The Chinese regulator has fined Alibaba and Tencent for violating disclosure rules. Under the antitrust law, the maximum possible fine in each case is 500,000 yuan ($74,688).

At the end of the week, futures contracts for palladium (+11.86%), natural gas (+5.88%), wheat (+5.59%), sugar (+5.42%), timber (+4.82%) and corn (+2.5%) were the biggest gains in the commodities market. Gasoline (-6.47%), Brent oil (-4.01%), orange juice (-3.99%), gold (-3.36%), WTI (-3.35%) and copper (-2.33%) futures contracts were the largest. drop.

S&P 500 (F) (US500) 3899.38 −3.24 (−0.08%)

Dow Jones (US 30) 31338.15 −46.40 (−0.15%)

DAX (DE40) 13,015.23 +172.01 (+ 1.34%)

FTSE 100 (UK100) 7196.24 +7.16 (+0.10%)

US dollar index 106.90 −0.24 (−0.22%)

Important events for today:

  • – Bank of Japan President (BoJ Gov Kuroda) speaks tentatively.
  • – The Governor of the Bank of England speaks at 17:15 (GMT +3);
  • FOMC member Williams speaking at 21:00 (GMT +3).

by just forex

This article reflects a personal opinion and should not be construed as investment advice and/or a continuing offer and/or solicitation to carry out financial transactions and/or guarantee and/or anticipation of future events.

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