STOCK PRICES AND NEWS


AMD News: Advanced Micro Devices stock gains as NASDAQ hits new all-time highs

NASDAQ:AMD has been the topic of bullish stock discussions after current industry leader NVIDIA (NASDAQ:NVDA) has shown massive strength in the past few months. AMD is widely considered to be in second place now, after surpassing Intel (NASDAQ:INTC) in CPU market share for computers and laptops. On Monday, AMD added 0.30% to close the trading session at $81.55. AMD rode the strong finish by the NASDAQ after the stock spent most of the morning session in the red.

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NASDAQ

Latest Nasdaq News


S&P 500

Latest S&P 500 Analysis


SPECIAL YEARLY FORECAST

S&P 500 Price Forecast 2021: Optimism is not inappropriate as bulls could enjoy another 15% winning year

S&P 500: Optimism is not inappropriate as bulls could enjoy another 15% winning year

It's not the Roaring Twenties, it's not even 2020, but pent-up consumer demand and the return of shuttered industries could boost the S&P 500 next year well beyond its recent record. Equity averages were already at all-time highs in late February when COVID-19 panicked markets into the starkest sell-off in post-war history. In one month, from February 19 to March 23, the S&P 500 shed 52.6% of its value.



US EQUITY INDICES

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The old economy stocks are said to be represented by the Dow. The Dow tends to be the leading indicator for international investment.

While the Dow reflects the BIG money, S&P 500 reflects the broader view is the preferred gauge of equity markets due to its bread coverage of the market. Historically it has shown a negative correlation to the yen (even on an intraday basis). It is a market value-weighted index made up of the prices of 500 large stocks traded in the US market, covering about 75% of US equities.

Nasdaq Composite is highly followed in the U.S. as an indicator of the performance of stocks of technology companies and growth companies. Since both U.S. and non-U.S. companies are listed on the NASDAQ stock market, the index is not exclusively a U.S. Index. The NASDAQ represents the speculative retail money.

Generally speaking, if the U.S. equity markets rise, they cause an increase in investors' risk appetite in which case foreign investment dollars will flock the U.S. equity market pumping the U.S. dollar higher.


EUROPEAN EQUITY INDICES

Germany DAX - Daily

UK FTSE 100 - Daily

The Deutscher Aktien Index, or DAX 30 for short, is the blue-chip market index for the Frankfurt Stock Exchange. It follows the top 30 German stocks on the electronic Xetra system that is used on the exchange. The DAX indices are all calculated using capitalization-weighted index using the total return Laspeyres index for calculations. 

Called the footsie, the Financial Times Stock Exchange 100 is a market capitalization-weighted index representing the top 100 blue-chip companies on the London Stock Exchange. The index is said to map more than 80% of the total capitalization in the United Kingdom. Stocks are free-float weighted to ensure that only the investable opportunity set is included within the index. 

The constituents of the index are revised every 3 months, based on market capitalization. For this reason, the FTSE 100 should not be assessed for any market breadth index, other than for the recent period for which the components have remained unchanged.


JAPANESE EQUITY INDICES

The Nikkei is a stock market index for the Tokyo Stock Exchange (TSE). It has been calculated daily by the Nihon Keizai Shimbun (Nikkei) newspaper since 1950. It is a price-weighted average (the unit is yen), and the components are reviewed once a year. This market is close correlated with US 10-Year Treasury notes. It's also useful to spot risk appetite and gauge FX flows. 
Usually it's negatively correlated to the Yen. It can be explained as a reasonable decline in the yen usually lifts stocks of export-oriented companies (cheaper Japanese products), which tends to boost the overall stock index. 
But the Nikkei-yen relationship is sometimes reversed (positive correlation): wherein a strong open market in the Nikkei tends to boost the yen (weighs on USD/JPY) as investors’ funds flow into yen-denominated stocks.

Nikkei225 - Daily


Relationships between stocks and currencies

Currencies are probably the most difficult asset class to fit into a consistent or idealized intermarket model. To start with, think that in order to purchase stocks from a particular country, investors must pay in the local currency, increasing the demand for it. The other way round, a strong currency makes bonds and stocks from that particular country look attractive.

In any case, the correlation is not always clear, there are response lags between each of the markets' reactions, Forex and equities, which leaves the investor holding foreign equities exposed to exchange rate fluctuations.

This correlation can also be fragile among international equity markets themselves. There are so-called "global divergences" when the stock market in one country starts performing better than the stock market in another country. Currency driven capital flows from the country with the weaker stock market to the country with the stronger stock market, is often the cause.

US Dollar Index - Daily

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Latest STOCK INDICES Analysis

Editors' picks

EUR/USD: Corrective pullback fades below previous support, 200-SMA

EUR/USD remains on the back foot, receding taking rounds to 1.2120-25, amid a sluggish Asian session trading on Wednesday. Sellers to keep reins as unless prices cross three-week-old resistance line. Easing bullish bias of MACD adds to the downside signals.

EUR/USD News

GBP/USD: Bears in control, cling to multi-day support near 1.4080

The GBP/USD pair started the session on Wednesday on a lower note. The pair recovered from the low of 1.4034 on Tuesday to close near the 1.4080 mark, where it waivers now. Momentum oscillator hints at downside momentum.

GBP/USD News

USD/JPY poised to refresh multi-week high near 110.30 ahead of FOMC

The buying pressure in the US dollar keeps USD/JPY above the 110.00 mark on Wednesday in the initial Asian trading session. The pair retreats from the earlier high of 110.13, however remain elevated. Yen remains sidelined as market volatility heightens ahead of FOMC.

USD/JPY News

Gold: Bulls looking for a upside correction ahead of Fed

The precious metals sector struggled overnight as investors position for a possible shift in monetary policy from the Fed. Gold prices were down some 0.4% in the final part of the North American day as the US dollar firmed ahead of the outcome of the Fed’s two-day meeting on Wednesday.

Gold News

WTI prints fresh cycle highs through $72

The price of a barrel of oil on Thursday was moving to fresh multi-year highs. Oil prices rose nearly 2% to their highest in more than two years backed by expectations of future demand. A call from Vitol Chief Executive Russell Hardy rallied the bulls, calling for oil prices to keep above $70 a barrel with demand expected to return to pre-pandemic levels in the second half of 2022.

Oil News

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