Stock markets conditioned to run on central bank support

Bank

Market movement Stocks and oil prices fell on Thursday after the U.S. Federal Reserve intimated it could soon cut back its support An increase in the spread of covid-19 delta variant, signs of Chinese economic weakness and the Taliban’s takeover of Afghanistan also spooked investors. FTSE 100, Dow and S&P 500 FTSE 100 was down 1.5% in afternoon trading. The Dow Jones fell 86 points at the open, while the S&P 500 lost 0.40%. Later, Nasdaq and S&P 500 eked out small gains. U.S. markets % change Value Change Dow…

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Markets move down!

Stocks fall

Pressure appears to be building as the stock market bull run falters. Major indices have given up gains and moved away from lofty highs. The DOW, S&P 500 and Nasdaq all closed down – each losing around 1% on Wednesday, 18th August 2021. The FTSE 100 and DAX, Nikkei and Hang-Seng all lost ground too. U.S. markets down U.S. markets % change Value Change Dow Jones – closed at -1.08% 34960 -383 Nasdaq – closed at -0.89% 14526 -130 S&P 50 – closed at -1.07% 4400 -48 U.S. Markets closed…

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U.S. indices sit at all time highs – but where now?

Bull market

The DOW at a jackpot high! The DOW, S&P 500 and Nasdaq have recently touched all time highs but where now for the U.S. stock market? Is it time for a breather? More upside? Many analysts suggest there is still room for more gains, especially for the S&P 500 – but I’m not so sure. I feel a 100% gain for the S&P 500 since the March 2020 pandemic drop may indicate it is vey close to a top in this cycle. Job creation, economic data, good company results and…

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One minute the virus isn’t a problem, when it is – then it is a problem, when it isn’t! What the hell? (As far as the stock market is concerned)

Fearful

Stocks tumble on delta variant fears Stock markets took a hit Monday 19th July 2021, as the headlines read, ‘Dow tumbles 900 points on concern of a Covid rebound‘. Is Covid entirely to blame for this fall? No, not entirely. Fickle highs? So, why now, after all – the virus hasn’t bothered stocks since the massive fall in March 2020 – as stock momentum and economic recovery went into overdrive and pushed the Dow, S&P 500 and Nasdaq to new record highs. U.S. stocks fell aggressively Monday on concern a…

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Gold gains ground as stocks stagnate

Gold

Gold is a clear winner from the pandemic Gold was initially sold off in February and during the early part of March. But since then gold has made substantial progress from the March lows, mostly due to central bank stimulus activity. Gold was around $1775.00 as of Wednesday 24th June. Stocks fall flat After a strong bounce on Tuesday 23rd, European markets opened lower Wednesday 24th June, with the FTSE 100 slipping back under 6,300. The DAX was also weaker and broke down through support at 12,400. The Dow is…

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Did the market get ahead of itself?

Tech stock sell off

Stocks select reverse gear U.S. and global stocks went into free fall on 11th June 2020 as the Dow recorded a 1800 point drop in one session, and as investors mull COVID-19 spikes, the Fed’s outlook and jobless claims data. The Fed promised it will keep interest rates low until 2022. Now this type of statement is usually music to Wall Street’s ears, but not this time, as markets unravel. Outlook not looking so good Did the market get way too far ahead of itself and is it now reacting…

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Sell in May – stay away, how did the month of May shape up?

Stock markets up

We all know the old adage, ‘sell in May and stay away‘, and there is some truth to it – but not for this May it would appear. Many indices saw good gains. So where now in June? Stocks closed out the month with good gains across the board, building on very healthy gains in April. The Dow and S&P 500 both rose more than 4% while the Nasdaq was up nearly 7%., with the Dax up just under 7% for the month. Indices gain in May The Dow opened…

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Stocks continue surge despite economic concerns

Stock Market

Tensions between the U.S. and China flared up further again today. China reportedly rejected a U.S. proposal for the Security Council to meet over the issue, whilst U.S. secretary of state Mike Pompeo declared that Hong Kong is no longer autonomous from Beijing. This morning China is also reported to have approved the controversial security legislation for HK. Tensions are showing signs they could bubble up even more and potentially boil over – I worry about an embattled U.S. president in this election year facing a national crisis at home and what he may…

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Global stocks continue to ride hope of pandemic recovery

Virus vs the Markets

Too fast too soon? Blind hope or sensible policy? Governments around the world attempt re-opening, but is it too early? Will we be hit with a second wave of the coronavirus? Hope is that the worst of the pandemic is behind us now. How can we know? What does the science say? According to the WHO, we should be very cautious and prepare for a second wave as infections are expected to spike. But for the moment, markets appear very happy with recovery hopes and of the recent vaccine news.…

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Stay alert to risk

Stay Alert!

Re-opening the UK economy It is generally agreed that economies will be much harder to re-open than they were to close. The UK PM on Sunday evening set out his plan to re-open the UK economy but this plan is still to be fleshed out. Boris Johnson, throughout lockdown, has been very liberal in his approach trusting the people of the UK to do the ‘right thing’ – and by-and-large they did. But businesses and employees now deserve much clearer and far more precise instruction, the clarity is missing. Second…

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