Trading Review: Ongoing Reports, Trends, Indices, Stocks, Bonds, Forex and Commodities and Analyst Recommendations
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Asian stock markets opened the trading week in a positive trend, led by the Hong Kong Hang Seng Index, which jumped 2.6%. There is no trade in Tokyo today.
Trading in futures contracts on US stock indices is up by 0.7%.
The reporting season on Wall Street continues and today results before the opening of trading will be published, among others, Bank of America and Goldman Sachs. After closing, IBM will publish results. Later this week, Netflix, Tesla, Lockheed Martin, United Airlines and many other companies will publish reports.
Global X economists note in their weekly review that “this week three reports on the U.S. housing market will be published, and they are all set to point to a significant decline. This is a direct consequence of the rise in interest rates, which will increase the cost of mortgages and make it difficult for citizens to finance the purchase of an apartment. For example, the 30-year fixed-rate mortgage currently carries a higher interest rate of 2.63% compared to the interest rate a year ago, which significantly micromanages the repayment and leads many buyers to withdraw from the purchase or purchase cheaper homes. Therefore, despite the constant rise in the consumer price index, we believe that there are signs of “destruction of demand” in the housing market, which will affect other sectors of the economy. By now, a decline can already be identified in areas such as furniture, renovation and transportation services. We believe that growth will slow down as the consumer reduces the volume of consumption. “
And now, they write, “the market is keeping an eye on the earnings report season for the second quarter of this year. We estimate that the reporting season will feature many misses of forecasts and signs of declining consumption and industrial activity. It will also be important to track companies’ forward forecasts.
In the crypto market the bitcoin is trading at a slight increase today, around $ 21,300, the etherium is climbing by about 4% to $ 1,400.
In the commodity market, contracts for oil are rising at light rates. A contract for the Brent for September climbs to a level of 101.7 a barrel. Gold also rose slightly to $ 1,714 an ounce.