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Covid continues to cause issues for investors

Covid continues to cause issues for investors

Covid continues to cause issues for investors

Stock markets started to drift lower heading into the weekend as there are a lot of concerns comingback with the Covid infection rate climbing in the United States. This of course has a knock on effectaround the world as the United States is by far the biggest consumer of goods. At the close on Friday,Wall Street was looking at a potential fifth losing day in a row, something not seen very often.The numbers in various states across the United Stateshave climbed, and the so-called “Delta variant”continues to infect those that have already been vaccinated. If that continues to be a major issue, then itis possible that we could see a certain amount of fear enter the market. Nonetheless, stocks are still veryextended at this point so one of the major causes for hesitation could simply be a bit of profit-taking aswell. It is worth noting that Friday was a major options expiration session, so with that being the caseMonday should tell us quite a bit.

Chinese intervene in the oil markets

Chinese intervene in the oil markets

China made a surprise intervention in the global oil market, releasing crude from its strategic reserve forthe first time with the explicit target of lowering price. The announcement has come among surgingenergy costs in China, not just for oil but also for: natural gas, as electricity shortages in some provinceshave forced factories to cut production. Inflation on the mainland is rapidly rising, which is a politicalissue for Beijing.It is statement on Thursday, the National Food and Strategic Reserves Administration said that thecountry has tapped its strategic reserves to ease the pressure of rising raw material prices. It did notoffer more details, but it does suggest that perhaps there are cracks in the Chinese economy starting toform. The Chinese did suggest that this was “an important way for the reserves the play its role inbalancing the market.” With that statement, it suggests that perhaps the Chinese may intervene again inthe relatively near future.At the time of writing, crude oil is pressing against a major downtrend line and trying to overtakeresistance barriers that would allow for another 3 to 5 dollar gain in both the WTI and Brent grades ofcrude oil. A falling US dollar could also exacerbatethat potential move.

Vaccine mandate waiting for US employers

Vaccine mandate waiting for US employers

Big names in the United States have cheered Joe Biden as he mandated employees either get vaccinatedor be tested regularly, in an effort to fight the pandemic. However, many midsize companies worry thatthe plan would be tough to carry out and could be yet another hurdle to hiring new workers. As themandate stance, it is any company that has over 100 workers, meaning that we may see more USemployees going towards smaller companies, puttingeven more pressure on the US economy. This is anannouncement that was made late on Thursday, so the fact has yet to be felt, but it is worth noting thatmost companies in the United States complain that finding labor has been a major issue.

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