Market sentiment ended on a somewhat cautious note Friday when the tech-heavy Nasdaq 100 dropped about 0.9%. However, the Dow Jones and S&P 500 lost. The sentiment-linked Australian and New Zealand dollars came under selling pressure as the port-linked US Dollar and Japanese Yen managed to rise. Even gold prices fell below for selling pressure after pronounced gains.
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All eyes have been on technology companies lately to drive some of the most aggressive gains in global equities since the end of March. Last week, tensions US-China may have played a major role. The former moved to ban transactions with major Chinese tech companies WeChat and TikTok. Tencent, the owner of WeChat, saw its share price decline by 10.5% at one point on Friday.
Report from China, the world’s largest economy in the world, must be kept in mind, as this could further suppress the mood of the market. Another major risk to look at is developments around U.S. fiscal stimulus. Last week, Democrats and Republicans failed to reach an agreement on the size of the package, urging the White House to consider executive action on certain incentive provisions.
Markets are looking ahead, hence the optimistic report of non-places set aside last week. A shortage or delay in US stimulus, as well as escalating tensions from US-China, could cause the prospects of a rapid global economic recovery from the damage that coronavirus has done. This could dampen the impact of EU and UK GDP data going forward. More focus could be given to University of Michigan Sentiment on Friday as a relatively temporary indicator of economic health.
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Fundamental forecasts:
British pound could fall on virus-hit GDP data, Brexit stalemate
The British pound could come under fire as uncertainty over Brexit continues to curb with the enthusiasm of GBP ahead of the release of preliminary, Q2 UK GDP data.
Oil price outlook depends on OPEC meeting as US exports remain stagnant
Oil prices clear throughout July ($ 42.51) ahead of the OPEC meeting as US rau output seatss at its lowest level since 2018.
S&P 500 and FTSE 100 Forecasts for the Week Ahead
Tech leading the S&P 500 to record highs, however, China risks rising. FTSE 100 hangs in a lower range.
Weekly Outlook of the US Dollar – Relief in the Short Term as a Change of Heart?
The US dollar is trying to form a supportive base for offset, but the fundamentals remain bleak for the greenback.
Yen may rise as Nasdaq 100 falls on US-China tensions, fiscal woes
The anti-risk Japanese Yen may rise against currency like the AUD and NZDop US-China tensions and fiscal stimulus anger which lower the Nasdaq 100 at the end of last week.
Technical forecasts:
USD-dollar outlook: USD Sales stopped at trend support – DXY levels
The Dollar is year-to-date less than 3% with the index responding to trend support in low-income multi-year. Here are the levels of interest on the DXY weekly technical chart.
S&P 500, DAX 30, FTSE 100 Forecasts for the Week Ahead (Charts)
U.S. stocks are looking for new highs, while the DAX and FTSE continue to prove relatively weak.
USD / MXN Week Ahead: Sentiment Will Concentrate on Sino-US Tensions Ahead of Banxico Meeting
USD / MXN recovers some buyer’s support as escalating geopolitical tensions cause a shift in direction
EUR / USD price forecast: eyes a test of the level of support for neckline
Last week, EUR / USD rose to a more than two-year high after which. Will the price reach a new level in the coming days?
Australian dollar output: AUD / USD rates look 2019 high
The Australian dollar could be on the verge of a major breakout against the US Dollar, as AUD / USD rates see a close above pivotal resistance of the card.
Technical forecast for gold price: Gold Rally roles, how far can it go?
Gold prices set a massive eruption in the first four days of this week, with a significant pullback appearing on Friday. But will that limit Golden Bull?
US DOLLAR WEEKLY INFRINGEMENT OF CURRENCIES AND GOLD
