Darren Sinden, Market Commentator for Admiral Markets, takes a look at the US equity indices, the MSCI emerging markets index and the CRB index, and further sees some signs of trouble ahead for the Nasdaq 100.
Sinden starts by commenting on the Fed hike agenda, favouring a early 2016 rate hike.
Key points from the video:
US indices, Recent performance & trend
Which industries have driven US equity markets?
Early warning sign for the Nasdaq?
Nasdaq retains its leadership
Sinden explains that the Nasdaq remains in a bull trend and retains its leadership in US equity indices. He further mentions that the Biotech and the Retail sector have been the key industries for the push higher in US equities.
Warning signs for the Nasdaq?
Sinden looks at the charts and sees similar divergence seen between Nasdaq 100 and the Chinese internet ‘darling’ Baidu, and cautions that this might be an early sign for the Nasdaq. This remains a cause for concern.
MSCI EM Index: Any downmove would hurt US
The MSCI EM index is testing the bottom band of the support area. EM remains a leading indicator for any disaster in the US, notes Zak Mir. Sinden sees potential for a 45% move lower in the index ahead, awaiting a catalyst.
MSCI EM vs CRB index
The MSCI EM and the CRB index remain closely correlated. CRB index in currently in a downward leg and the MSCI EM might react to this ahead. Commodity price slump remains a cause for concern to EM.
We are not authorised by the Financial Conduct Authority of England and Wales. The information and/or data on this website is provided by us and any data providers which may be used by us for your general information and use only and is not intended for trading purposes or to address your particular financial or other requirements. In particular, the information and/or data on the website:
(1) does not constitute any form of advice (financial, investment, tax, medical, legal, spread -betting or otherwise); and (2) does not constitute any inducement, invitation or recommendation relating to any of the products listed or referred to; and (3) is not intended to be relied upon by you in making (or refraining to make) any specific investment, placing any bet or making any other decision; and (4) has not been issued or approved by Tip TV for the purposes of section 21 of the Financial Services and Markets Act 2000 (as amended from time to time).
Opinions expressed by speakers in the videos, writers of the blogs are only opinions and not expert advice. These opinions do not necessarily agree with those held by Tip TV, its directors, agents or employees who disclaim any intent to make betting, securities or securities markets recommendations. The value of investments and the income derived from them may fall as well as rise. APPROPRIATE EXPERT INDEPENDENT ADVICE SHOULD BE OBTAINED BEFORE MAKING ANY INVESTMENT, PLACING ANY BET OR MAKING ANY OTHER DECISIONS.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.