Market news

Daily finance news update


Santa rally in play, gold inches higher

December 28,2021 07:54:37

Overnight Headlines

*S&P500 hits a fresh record high in thin holiday trade

*PBoC pledges more “proactive” monetary policy, hints at easing property curbs

*Brent crude soars through $78 as the risk trade cranks up

*Japan industrial production for November rises 7.2% vs 4.8% m/m expected

USD was subdued as is often the case around this time of the year. With the risk mood mildly positive, the yen lagged as USD/JPY hit one-month highs close to 115. The cycle high from late November sits at 115.52. GBP was the leading major, building on pre-Christmas gains and not far from a one-month high. Cable rose above 1.3411 and up to the 50-day SMA at 1.3437. EUR was quiet still trading around 1.13. AUD looks like it wants to push higher above the recent high at 0.7251.

US equities closed at a record high marking the fourth straight session of gains. An ecommerce boom in retail sales underscored economic strength and eased worries from Omicron-driven flight cancellations which hit travel stocks. The S&P500 rose 1.38%, the Nasdaq was up 1.39% and the Dow climbed 0.98%. Asian stocks are in the green with the Nikkei posting one-month highs. US futures are mixed.

Market Thoughts – Positive risk sentiment into 2022

The traditional Santa rally is again playing out so far. This week has historically seen the main gains for the bullish festive move in stocks. It should continue into the first couple of days of 2022. Omicron news remain modestly upbeat as the UK and France forego imposing more social restrictions.

The bond market remains muted with the US 10-year yield still stuck below 1.5% and just below the 200-day SMA. Liquidity will remain low until after New Year with equity investors having half an eye on the Q4 earnings season which kicks off in mid-January. Will higher input costs see profit margins continue to get squeezed?

Chart of the Day – Gold creeps higher

Gold is enjoying the last few days of the year, on a four-day win streak. Prices had been trading around the $1800 mark but have pushed up above the 200-day SMA in recent sessions.

Of course, holiday trading is thin and moves can evaporate quickly. The first major level of resistance is $1834, ahead of the November highs above $1860. Further signs that the market is taking the risk of more persistent high inflation seriously will be needed for gold bugs to reach these heights.

Jamie DuttaAnalyst / Trader

"With extensive experience as a full time trader and financial market commentator, I have worked as a trader in top tier investment banks and trading houses, including Morgan Stanley and GAIN Capital trading Forex, Index derivatives. and Bonds. I combine technical analysis with a deep fundamental knowledge to identify trade set-ups. My real life experience allows me to break down the complexities of financial jargon and trading. This means everyone can better understand the compelling forces of greed and fear which are realised every day in countless ways across markets."

Vantage does not represent or warrant that the material provided here is accurate, current, or complete, and therefore should not be relied upon as such. The information provided here, whether from a third party or not, is not to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any financial instruments; or to participate in any specific trading strategy. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. We advise any readers of this content to seek their own advice. Without the approval of Vantage, reproduction or redistribution of this information is not permitted.

Pembukaan akun cepat & mudah

  • Daftar

    Pilih tipe akun dan kirimkan aplikasi Anda

  • Danai

    Danai akun Anda menggunakan metode pendanaan yang bervariasi

  • Trade

    Akses 400+ instrumen CFD di semua kelas aset melalui MT4/MT5

Hanya itu. Sangat mudah untuk membuka akun trading Forex dan CFD.
Selamat datang ke dunia trading!