Global stock markets have rallied on the sentiment that the Fed will move towards slowing the pace of rate hikes considerably.
- Global markets have seen stocks rise quite firmly on many exchanges over the past day as risk sentiment improves on an increasing feeling that the Fed will slow rate hikes. The Hang Seng Index is up by 1.82% and the Nikkei 225 Index is up by 1.56%. The S&P 500 Index is very likely to make a bull cross (golden cross) at some time during the next couple of weeks.
- In the Forex market, after making some gains, the US Dollar is again declining, while the Japanese Yen is clearly the strongest major currency. The EUR/USD currency pair yesterday reached a new 9-month high above $1.0926 and it is likely that we will see higher prices there over the coming days. The GBP/USD currency pair briefly traded earlier at a new 7-month high, but quickly reversed to trade back below its key resistance level at $1.2437.
- The long-term bullish trend in Gold remains valid, and we have seen Copper make a strong bullish breakout. These assets are attractive to long-term trend traders in the long direction right now, as higher prices here are likely over the coming days.
- It is a public holiday in China all week due to the Chinese New Year.
- Daily confirmed new global coronavirus cases decreased last week for the fifth consecutive week, but there are serious doubts over the veracity of China’s official statistics, which almost certainly dramatically understate new coronavirus cases.
- Total confirmed new coronavirus cases worldwide stand at over 673.5 million with an average case fatality rate of 1.00%. Daily new confirmed cases have fallen to a low level not seen since the summer of 2020.