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April 21 – Statistics New Zealand data shows that New Zealands first-quarter CPI rose 3.1% year-on-year, the same as the increase in the fourth quarter of last year, while economists had previously expected 2.9%. The CPI rose 0.9% month-on-month, higher than the expected 0.8%. New Zealands first-quarter inflation rate unexpectedly remained above the 1% to 3% target range before rising fuel and other costs due to the Iran war were expected to push the CPI up. The Reserve Bank of New Zealand initially estimates that the inflation rate will accelerate to 4.2% in the second quarter, while local economists expect the inflation rate to be even higher and remain above the target range until 2027. Faced with the risk that inflation could become deeply entrenched in the economy, the market widely expects the Reserve Bank of New Zealand to raise interest rates sooner than previously anticipated, with investors expecting the first rate hike as early as July.1. The three major U.S. stock indexes closed slightly lower. The Dow Jones Industrial Average fell 0.01% to 49,442.56 points, the S&P 500 fell 0.24% to 7,109.14 points, and the Nasdaq Composite fell 0.26% to 24,404.39 points. 3M fell more than 2%, and Procter & Gamble fell more than 1%, leading the decline in the Dow. The Wind U.S. Tech Big Seven Index fell 0.6%, with Facebook and Tesla falling more than 2%. The Nasdaq China Golden Dragon Index fell 0.32%, Zai Lab rose more than 4%, and Hesai Technology fell nearly 6%. 2. The three major European stock indexes all closed lower. The German DAX fell 1.15% to 24,417.8 points, the French CAC40 fell 1.12% to 8,331.05 points, and the UK FTSE 100 fell 0.55% to 10,609.08 points. 3. International precious metals futures generally closed lower. COMEX gold futures fell 0.79% to $4,841.00 per ounce, and COMEX silver futures fell 2.41% to $79.87 per ounce. 4. The WTI crude oil futures contract closed up 4.0% at $85.89 per barrel; the Brent crude oil futures contract rose 3.78% to $93.8 per barrel.April 21 - According to NBC News on April 20, the United States is expected to deploy three carrier strike groups simultaneously in the Middle East in the coming days. The report states that the USS Abraham Lincoln carrier strike group is currently deployed in the Gulf of Oman, near the Strait of Hormuz, participating in maritime blockade operations; the USS Ford carrier strike group is located in the northern Red Sea; and the USS George H.W. Bush carrier strike group, which has chosen to detour around Africa, is heading north from southeast Africa and is expected to enter the Arabian Sea—this carrier may replace the USS Ford in its mission, but in the short term, the US military may have three carrier strike groups deployed simultaneously in the Middle East.On April 21, the Ministry of State Security issued a security alert. Recently, a hidden industry chain involving AI "poisoning" has been exposed, drawing widespread public attention. This behavior of maliciously contaminating AI models not only disrupts business order and affects information dissemination, but also endangers national security. While artificial intelligence empowers various industries, its security risks cannot be ignored. Promoting ethical AI governance and safeguarding data security are not only industry responsibilities but also require the participation of the entire society.According to Al Jazeera, Iranian-backed Iraqi armed groups have warned that they will resume attacks as the ceasefire deadline approaches.

European Open: FTSE Aims For a 5th Bullish Week, USD/CAD in Focus

Skylar Shaw

Apr 12, 2022 10:55

The ASX 200 index in Australia increased by 33.4 points (0.45 percent) to 7,476.20.


The Nikkei 225 index in Japan has gained 87.06 points (0.25 percent) and now trades at 34,583.57.


The Hang Seng index in Hong Kong has dropped -124.54 points (0.57%) and is now trading at 21,684.44.


The A50 Index in China has increased by 33.08 points (0.24 percent) to 13,884.16.


The FTSE 100 futures in the United Kingdom are now up 50 points (0.67 percent), with the cash market expected to start at 7,601.81.


Futures on the Euro STOXX 50 are now up 32 points (0.86 percent), with the cash market expected to start at 3,834.01.


The DAX futures in Germany are now up 96 points (0.68 percent), with the cash market expected to open at 14,174.


Futures in the United States: The DJI futures are now down -10 points (-0.03 percent )


Futures on the S&P 500 are now up 2 points (0.01 percent )


Futures for the Nasdaq 100 are now down -2 points (-0.04 percent )

Market Internals (FTSE)

On the weekly chart, if the FTSE closes around 7550 today, it will create a little bearish pinbar. It would also be the market's fifth straight positive week, and the first of the year. However, the FTSE hasn't had more than five positive weeks since May 2018, so the chances of a rebound next week are slim. Especially considering, as bulls lose speed, volatility into recent highs has been the lowest in the last five weeks.


08 April 2022, FTSE 350: 4230.52 (-0.45%).


16 stocks hit new 52-week highs, while 7 hit new lows.


89 (25.36 percent) equities rose, while 250 (71.23 percent) fell.


Outperformers:


Hochschild Mining PLC (HOCM.L) is up 13.77 percent, while BAE Systems PLC is up 5.16 percent (BAES.L)


Capricorn Energy PLC is up 4.72 percent (CNE.L)


Underperformers: Ferrexpo PLC (FXPO.L) -42.6 percent; Polymetal International PLC (POLYP.L) -37.8 percent; EVRAZ plc -30.4 percent (EVRE.L)

 

At 13:30 BST, the job situation in Canada will be discussed.


Employment in Canada is now at 5.5 percent, the lowest level since June 2019. Even yet, if it matches projections and falls to 5.4 percent, it would be the lowest it has been in at least 48 years.


Expectations for another big job gain are modest, with the consensus hovering around 80k, a long cry from the 336.6k it printed in February. Still, since that fears of nuclear war have (hopefully) diminished compared to a month ago, another solid report might tilt the scales back towards a BOC (Bank of Canada) rate rise this month.


Prior to the jobs report in Canada, the USD/CAD is hovering at resistance.


While currency and commodities market volatility remained minimal overnight, we observed a continuation of yesterday's developments. For the eighth day in a row, the dollar is higher (while the euro is down). In today's Asian Open report, we mentioned a probable bull flag on GBP/AUD, and a similar setup is emerging on GBP/CAD, albeit we'd need to see a break above the 1.6473 high to invalidate the bearish channel and confirm the flag.

 

The possibility for USD/CAD to mean reversion on the daily chart was highlighted on Tuesday, and it has not disappointed, climbing for two days in a row and hitting our top bullish objective. Prices are stabilizing at the highs on the four-hour chart, as the monthly pivot point, weekly R1, and 200-bar eMA offer resistance.


Given that markets are already pricing in a 50-bps raise from the Bank of Canada this month, a shockingly weak jobs data for Canada might see the pair break decisively higher (and may also provide the more volatile move). However, if the jobs data is greater than predicted, USD/CAD may retreat from its recent highs. As a result, the zone between 1.2580 and 1.2610 is crucial to monitor.


Regardless of today's conclusion, considering the recovery from 1.24 after its powerful bullish pinbar on Tuesday, we may see this one break higher in the future.