Yesterday, the US stock markets, led by strong upward price movement in the tech sector, put in another round of gains. Electronic Arts was among the biggest risers on the S&P 500 on Thursday March 21, adding some 8.09% to close at $104.88.
AAPL Reclaims World’s Most Valuable Public Company Title
Apple was also one of yesterday’s biggest winners after the tech conglomerate breezed past Microsoft to reclaim its title as the world’s most-valuable public company. AAPL rallied close to 4% Thursday, giving Apple a market cap of about $916 billion. Investment bank Needham also upgraded Apple stock from a “buy” to a “strong buy” on Thursday, citing the value of Apple’s ecosystem of hardware, the growth potential of Apple’s anticipated video-streaming services and the company’s strong network effects. More importantly, the investment bank raised its price target from $180 to $225.
Historic Divergences
Stock markets elsewhere in the world are not sharing the US markets' enthusiasm making the divergences between the US and the rest of the world historically large. What is more, the overbought level of markets is very similar to that of markets in 1937. Another interesting statistic for this year (2019), US Stock markets were able to go further up especially on Friday; but will this pattern continue today?
Donald Trump Criticizes the Fed
After a strong Phil Fed manufacturing yesterday, further comments by Donald Trump that the economy in the US is not slowing down and that FED Chair Powell was wrong to have given that outlook, helped the US related markets further. The president went on to add that if it wasn’t for the decisions of Federal Reserve Chairman Jerome Powell and his colleagues, the U.S. economy would have expanded above a 4% annual rate in 2018.
Forex Preview: Dollar Gains
The USD was boosted by the positive sentiment around the US economy, recouping most of the ground lost in the previous session after the Federal Reserve abandoned all plans to raise rates this year. USD traders will now be focusing on today’s Manufacturing PMI and existing home sales out of the US for more direction.
Elsewhere, the GBP seems to see a floor around the 1.31 for priced in negativity, while the EU is trying to force the UK into a deal or not grant an extension other until April 12th. Meanwhile, the EUR/USD traded lower on newfound USD strength, and it is one again fighting with the 1.14 however as a resistance now.
Gold Fluctuates
Gold moved from losses to gains this morning, as investors are currently uncertain about where the economy is heading and whether it is going to recover or not. Personally, I believe that the fact that XAU/USD is holding above the key $1,300 level, could mean that there will be further upside potential.
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Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.