What’s Keeping Traders Up At Night?
With so many global financial issues right now, here’s what’s keeping traders up at night. After that, we’ll update you on the key fundamental events of the week. Let’s go!
Losing sleep? No wonder!
Here are the top 4 issues on most traders minds right now.
#1 The impending recession
Ever growing fears of the impending, and long overdue, next recession are sure to be weighing on traders minds in the early hours.
The S&P 500 has now dropped 20.25% over the last 6 months, making it an official bear market, which is only adding to the warning signs.
Recessions bring huge volatility and that can force traders out of the market as they decide to move their investments into other instruments in an attempt to hedge against this volatility. Traders who haven’t done that yet will be having nightmares for sure.
This needs no introduction. Now 4-months into the conflict in Ukraine, uncertainty in the markets is still abound. The economic sanctions that have been placed on Russia have really shaken up the markets too.
The biggest areas of impact are on energy and food prices. With the Versailles Declaration agreed in March 2022, the EU leaders of the 27 member states agreed to phase out the EU’s dependence on Russian fossil fuels as soon as possible.
Traders are watching this story as it continues to develop.
#3 Oil prices
Oil prices are continuing to rise, not least because of the impact of the Russian invasion of Ukraine.
WTI/USD is up to 108.48, a 42.79% increase since the beginning of the year.
Source: Trading view
It’s not only the impact of war in Ukraine, though. The effect of government enforced lockdowns is still being felt. The decline in demand resulted in a drop in production. Now the heavily increased demand has hit producers who are struggling to meet that demand, creating the perfect storm.
#4 More Covid Restrictions
We couldn’t not mention this. Despite the fact that lockdowns and restrictions are well behind us, variants are still being touted as a threat to the freedom of movement. UK infections are reportedly on the rise, up 30% week on week.
Investors will be watching rising cases with great interest, knowing what previous surges have brought with them.
It’s worth remembering that with volatility comes opportunity — but also extremely high-risk. You must practice control and caution and to manage both of those, you need a good night’s sleep.
So, get your forty-winks — you’re going to need it.
How are you sleeping?
Do you agree with our list, or is anything else worrying you right now? Let us know by tweeting us at @_contentworks.
Top fundamental events this week
It looks like a relatively quiet week ahead. Here are all of the must-watch events to look out for.
No significant events are expected. Monday is the July 4th holiday in the USA.
● AUD — RBA Interest Rate Decision
● GBP — S&P Global/CIPS UK Services PMI Final (JUN)
● USD — ISM Non-Manufacturing PMI (JUN); FOMC Minutes
● CAD — Balance of Trade (MAY)
● CAD — Employment Change (JUN); Unemployment Rate (JUN)
● USD — Non-Farm Payrolls (JUN); Unemployment Rate (JUN)
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The Contentworks team