Equity Markets

US equity markets bounced back on Monday after the significant falls from late last week. Dip buyers and pile back into some of the cyclical areas of the stock market that came under the most pressure last week, signalling those traders believed the Fed inspired sell off was “overdone”.

• Dow Jones up 586 (1.76%)
• NASDAQ up 111 (0.79%)
• S&P 500 up 58.34 (1.40%)
• Russell 2000 up 48.35 (2.16%)

With second-quarter earnings season just around the corner, investors are also positioning themselves for a likely strong performance of corporate earnings, analysts are looking for S&P 500 earnings to grow by 61.9% year-on-year.

Economic Announcements – FX

Overnight ECB President Christine Lagarde spoke in front of the European parliament’s Economic and Monetary affairs committee. Lagarde played down the fear of inflation on the Continent and said accelerating U.S. inflation that prompted the Fed to adjust its view of price risks will have only a limited impact in the euro area.

On this cautious tone, very little impact was seen on the Euro, but with the Fed talking taper and the ECB not even considering it at this stage (even suggesting further rate cuts were possible) we could see the EURUSD rate continue to weaken this week.

 

Source: Twitter

Early tomorrow morning US Federal Reserve chairman Jerome Powell is set to testify before congress on the Fed’s emergency lending programs and current policies.

After the Fed’s Hawkish pivot last week, this testimony will be closely watched by traders to see if Powell continues with this tone, or walks back some of it USD volatility is a possibility over this time.

Cryptocurrencies

Cryptocurrencies suffered a sharp sell off overnight which has continued this morning. Bitcoin, Ether, Ripple all suffered double-digit percentage losses as the effect of the Chinese government crackdown on crypto mining becomes apparent.

With Chinese mines powering nearly 80 percent of the global trade in cryptocurrencies, the sudden drop in mining capability has slowed transaction times significantly, causing a crisis of confidence in the sector.

Bitcoin is holding just above its long 2023 support levels of around 31k USD where it has found buyers in the previous sell offs. A break of this level could see Bitcoin take a significant let lower.

Source: GO MT4

Wednesday, 23 June 2023 – Indicative Index Dividends
^{Dividends are in Points}

Symbol	Dividend
ASX200	0.121
WS30	0
US500	0.012
US2000	0.059
NDX100	0
CAC40	2.31
STOXX50	0.708
ESP35	0
ITA40	0
FTSE100	0
DAX30	0
HK50	0
JP225	0
INDIA50	0