STOCK PRICES AND NEWS


AMC advances more than 3% in premarket day after being halted

AMC advances more than 3% in premarket day after being halted

AMC stock is up 3.4% in Friday's premarket just a day after authorities halted trading due to unusual volatility. Thursday saw options volume three times higher than the 20-day average, and AMC stock leapt as much as 27% before trading was halted shortly before 12:30pm.

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NASDAQ

Latest Nasdaq News


S&P 500

Latest S&P 500 Analysis


SPECIAL YEARLY FORECAST

S&P 500 Forecast (SPY) (SPX): Four reasons why the S&P 500 can power to 5,500 in 2022

S&P 500: Four reasons why the S&P 500 can power to 5,500 in 2022

Forecasting, like economics, is a dismal science, but occasionally one can reap the rewards of a carefully constructed argument. 2021 follows 2020 as a tumultuous year with some momentous events in the stock market. With less than a month to go, we can safely consign 2021 to one of the strongest years on record for stock market performance, and now we endeavour to forecast for 2022. Will it be another year of strong equity performance? Will inflation batter returns? Will Bitcoin blow up or takeover?



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 falls below 1.0500 after US NFP data

EUR/USD falls below 1.0500 after US NFP data

EUR/USD dropped below 1.0450 but managed to stage a modest rebound. The US Dollar preserves its strength against its rivals and doesn't allow the pair to gain traction after the data from the US showed that Nonfarm Payrolls rose by 263,000 in November.

EUR/USD News

GBP/USD turns south on upbeat US jobs report, trades below 1.2200

GBP/USD turns south on upbeat US jobs report, trades below 1.2200

GBP/USD lost nearly 100 pips with the immediate reaction to the upbeat November jobs report from the US and broke below 1.2200. The US Dollar Index clings to strong daily gains above 105.00 after the data showed that Nonfarm Payrolls rose by 263,000.

GBPUSD News

USD/JPY jumps after NFP erasing daily losses, finds resistance below 136.00

USD/JPY jumps after NFP erasing daily losses, finds resistance below 136.00

The USD/JPY jumped from 134.10 to 135.95, after the release of the US official employment report that showed better-than-expected numbers. The pair then pulled back toward 135.00 after the initial reaction.

USDJPY News

Gold retreats below $1,790 as US yields surge on US NFP

Gold retreats below $1,790 as US yields surge on US NFP

Gold price turned south and dropped below $1,790 in the early American session. The benchmark 10-year US Treasury bond yield is up more than 2% on the day near 3.6% after the bigger-than-expected November job growth, weighing heavily on XAU/USD.

Gold News

Crude Oil, WTI, testing key $81.00 level, eyes on test of $80.00

Crude Oil, WTI, testing key $81.00 level, eyes on test of $80.00

West Texas Intermediate (WTI) was buoyed by easing COVID-19 restrictions in China. However, at the time of writing, WTI is lower by some 0.2% in early Asia and hovers around $81.20 although remains in bullish territory having rallied through a major downside channel this week.

Oil News

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