Stephen Innes
SPI Asset Management
Hong Kong stocks remain entrenched in a prolonged decline, hurt further by a significant drop in consumer prices in China, marking the steepest decrease in three years. This development has intensified worries about potential deflation impacting corporate earnings and profit margins, dragging down the region markets in a negative feedback loop.
In the interim, investors in the S&P 500 actively embrace the nuances of the Non-Farm Payrolls (NFP) report, even in the face of slightly higher-than-anticipated headline figures. Notably, the surge in productivity is currently counteracting over half of the inflationary effects resulting from increased labour costs. Despite a robust 4.0% year-on-year surge in hourly compensation, the rise in unit labour costs remains modest at just 1.6%, a notable contrast to the 6.5% observed when inflationary pressures began to emerge two years ago. If this trend persists, the Federal Reserve will face minimal challenges in achieving its 2% inflation target.
SPI Asset Management provides forex, commodities, and global indices analysis, in a timely and accurate fashion on major economic trends, technical analysis, and worldwide events that impact different asset classes and investors.
Our publications are for general information purposes only. It is not investment advice or a solicitation to buy or sell securities.
Opinions are the authors — not necessarily SPI Asset Management its officers or directors. Leveraged trading is high risk and not suitable for all. Losses can exceed investments.
Recommended Content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.