This is Binoption’s first installment of our weekly worldwide market overview. Here, we will provide a summary of what’s going around in the trading markets over the week and some future insights as well.
The markets are divided into different regions such as the US, Europe, Japan, China, and other
markets.
Without further ado, let’s get started with the market overview.
Equities lose momentum this week. The week started strong as stocks boomed as a result of the deal between US and Mexico to prevent tariffs.
This momentum was lost however, later during the week. S&P 500 and Dow Jones Industrial Average ended up with moderate gains.
Coincidentally, the IT stocks started strong and withered down as the week progressed. These stocks were boosted by the news of salesforce.com, a leading CRM website acquiring Tableau Software, a data analytics provider.
Weak inflation data helps the Treasury yields fall, with the yield on the 10 year Treasury note falling below 2.10%.
The trade war between U.S and China and the political tensions in the Middle East further benefited the Treasuries.
The energy sector were pretty volatile during the week. The U.S crude oil dropped by 4% and news of oil tankers getting attacked in the Gulf of Oman resulted in a rally that saw a rise in price.
The stock market flourished as a result of rising oil prices. STOXX, FTSE 100, DAX, and FTSE MIB all gained points
Former Foreign Secretary and London Mayor Boris Johnson won the Conservative Party’s first round of voting to replace the current leader Theresa May.
Johnson finished with 114 of the 313 votes cast. A further two more ballots would be cast before the final two candidates are announced.
The British Pound lost 1% against the USD due to the political uncertainty in the country. Another reason is the decline in car production in the U.K causing an economic decline.
The Chinese stocks showed miniscule growth as the Shanghai Composite Index grew 1.9% and the CSI 300 added 2.5%.
The industrial output rose by 5% in May and fixed asset investment rose by 5.6%.
Japanese stocks saw a positive change this week. Nikkei 225 gained 232 points meaning a rise by 1.1%. TOPIX gained 3.5%, which is moderate gains. The Yen stands at ¥108.38 per USD
Japan’s gross annualized GDP increased to 2.2%. Meanwhile Japanese exports fell for the fifth consecutive month in April.
The stock market in Turkey fell by 3.2%. The reasons for this includes the increase in the oil prices due to the aforementioned attacks on the oil tankers and the tensions between the US and Turkey over Turkey’s purchase of Russian military hardware.
Mexico and the US have come into an agreement to avoid tariifs. However, the Mexican stocks had a negative return of 0.4% for the week.
Brazilian stocks saw minor changes according to the Bovespa Index.
The pension reform, if passed and signed into law, is expected to save 913 million reals over the next 10 years for Brazil.
That’s it for this weeks market overview. If you trade stocks, currencies, indices, commodities, and more, feel free to check out our broker section to find the best trading brokers.
Until next week, trade smart, invest wisely.
This post was last modified on October 25, 2022 4:13 pm