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Russian sources report that the armistice agreement reached to celebrate the victory has expired.Russian Deputy Prime Minister Novak: Russia will maintain its 2026 oil price forecast for budget calculations at $59 per barrel, and lower it to $50 per barrel for 2027-2029.The trial of Polish airline LOT in its Boeing (BA.N) 737 MAX fraud case began in a U.S. federal district court. LOT alleges that Boeing concealed safety hazards in the 737 MAX in 2016 to boost aircraft sales. Boeing maintains that its sales staff were unaware of the safety issues at the time, making it impossible for them to have lied.On May 12th, according to US financial media Semafor, as the White House focuses on cutting spending in preparation for the midterm elections, housing agencies have expressed concerns that government officials may soon scale back a program that has so far funded over 56,000 affordable rental homes without taxpayers bearing the costs. The National Association of Affordable Housing Loan Agencies stated in a letter signed by more than a dozen groups that the Federal Financing Bank Risk-Sharing Program has been used by agencies in 34 states to reduce borrowing costs while “generating a net revenue gain for the Treasury,” and therefore “is a program that a fiscally serious government should retain.” These groups pointed out that the White House’s 2027 fiscal year budget “is not expected to make any new commitments to the program” and warned that state housing agencies have already been “rejected.” The association stated, “Given the severity of the housing shortage, the Trump administration should not only reinstate access to the program but also expand its coverage.”According to ITV, British Deputy Prime Minister Lamy is urging Prime Minister Starmer to set a timetable for his resignation.

Two Trades to Watch: DAX, GBP/USD

Jimmy Khan

May 07, 2022 10:43


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The DAX is falling as industrial output declines.


After a slaughter on Wall Street that saw the Nasdaq finsh 5% down, European equities have begun in the red, extending losses from the previous day.


Fears of inflation, stagflation, and recession are weighing on the market as we approach the weekend. The DAX is expected to shed 1.4 percent this week, marking the fifth consecutive week of losses.


In March, German industrial output decreased -3.9 percent on a month-over-month basis, down from 0.2 percent in February and considerably below the -1 percent drop forecast. The negative report comes on the heels of a sharp drop in German manufacturing orders in March. The data represents the economic effect of the Russian conflict on Germany and the Eurozone as a whole.


Germany does not have any additional statistics due today. Sentiment and the US NFP announcement will affect European indexes.