The US market could be a trap

By 05/07/2021News

Gold  1787,34

EURUSD   1,1858

DJIA  34623,50

OIL.WTI  75,09

DAX   15648,50

Another trading week ends with growth. It is not at all clear what the driver is, but most likely the US market has now decided to try its hand at being Las Vegas. Where one wants to take a lot of risks.



A very strong US jobs report came out, after which there was serious talk that the Fed would start to raise rates. But of course the Fed will not be reckless. Such reports are not enough to make serious interest rate decisions. After all, it is summer, a time of holidays and it is unlikely that the Fed will start to act to cut the quantitative easing programme at this time. Most likely, they will start to act in autumn, when the majority is in the market.
OPEC+ negotiations were very important for global markets last week. OPEC was in favour of an increase in production by 700 kbpd.
In the current situation there is still the question of where commodity prices will go. Global inflation is just picking up and global commodity prices are breaking records.
What follows is likely to be a correction, which at the moment is difficult to anticipate. A huge period of growth has to be corrected somewhere in any case.

03.30 Australian retail sales for May
10.00 Markit Composite PMI Final in Germany for June

Important Notes on This Publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.