Alphachain Academy

News Recap: Markets surged last week after the Federal Reserve announced it would raise its target range for the federal funds rate by 25 basis points to 0.25% to 0.50% as expected to fight inflation

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Watch Head of Trading Academy, Gavin Pannu run through current market themes covering the following topics:

*Geopolitical Risk

*Microeconomic data

*Political Risk at the current moment

and more!

Market Trading Analysis

As the Federal Reserve announced it would raise its target range for the federal funds rate by 25 basis points to 0.25% to 0.50%, the consensus is 6 more rate hikes this year and quantitative tightening is to come as well.

It was the best week for the three major US averages since November 2020. Some of the shine came off the recent rally in Chinese stocks overnight, and once again tech stocks were hit the most as Evergrande suspended trading in its shares, raising fresh fears about the sector again.

After the strong gains for equity markets last week a more indecisive trading environment is expected for European market open, heightened by reports that the Russian and Ukrainian presidents are not yet ready to meet to discuss the situation. Oil prices are on the up again, however, on reports that the EU was considering an embargo on Russian oil exports, ahead of a summit meeting this week which will be attended by President Biden.

Biden will hold a call with some of his European counterparts today while EU foreign and defence ministers meet in Brussels, kicking off a week of high stakes diplomacy culminating in a bumper meeting of EU, NATO and G7 leaders in Brussels at the end of the week.

Data-wise we have interest rate decisions from Norges Bank, Banxico and the SNB, and we also have a number of PMI releases.

APAC stocks were choppy despite the strong close on Wall St, last week; best weekly performance for the S&P 500 since November 2020.

Ukrainian President Zelensky said he is ready to negotiate with Russian President Putin; Turkish officials says Putin is not ready.

The EU is reportedly to consider an embargo on Russian oil this week as Biden heads to Europe.

European equity futures are indicative of a slightly softer open with the Euro Stoxx 50 future down 0.4% after the cash market closed higher by 0.4% on Friday.

DXY trades flat over 98.00, EUR unfazed by hawkish ECB remarks, CHF lags.

Looking ahead, highlights include EU Foreign Affairs Meeting, Speeches from Fed Powell, Fed’s Bostic and ECB’s Lagarde.

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