The financial world is keeping a close watch on some important economic news this week. Two major central banks, the Reserve Bank of Australia (RBA) and the Bank of Canada (BOC), will be releasing their rate statements. Given the potential for increased market volatility, we advise traders to exercise caution and stay mindful of their trading strategies.

Here are some notable highlights for the upcoming week:

Reserve Bank of Australia Rate Statement (5 September 2023) 

The Reserve Bank of Australia held its cash rate steady at 4.1% during its August meeting, continuing the rate pause for the second consecutive month. 

The central bank is set to announce the next interest rate adjustment on 5 September, and analysts anticipate that the RBA will maintain its rate at 4.1%.

Australia Quarterly Gross Domestic Product (6 September 2023) 

The Australian economy saw a 0.2% quarter-on-quarter expansion in Q1 2023, following a 0.6% increase in Q4 2022.

The figures for Q2 2023 are scheduled for release on 6 September, with analysts predicting another 0.2% increase in the GDP. 

Bank of Canada Rate Statement (6 September 2023)

The Bank of Canada (BOC) increased the target for its overnight rate by 25 bps to 5% in July 2023. This move followed a surprising 25 bps rate hike in the previous meeting and extended the bank’s tightening cycle, which had briefly paused in March and April. 

The next rate statement is scheduled for release on 6 September, and analysts expect the BOC to maintain its interest rates at 5%.

US ISM Services PMI (6 September 2023)

The US Institute of Supply Management (ISM) Non-Manufacturing Purchasing Managers’ Index, also known as the US ISM Services PMI, fell to 52.7 in July 2023. This follows a four-month high of 53.9 in June. 

The ISM’s data for August 2023 is scheduled for release on 6 September, with analysts anticipating a slight decrease to 52.6.

Canada Unemployment Rate (8 September 2023)

The Canadian unemployment rate edged higher to 5.5% in July 2023 from 5.4% in the previous month, marking the third consecutive increase to levels last seen in January 2022. This reflects some softening in the Canadian labour market. 

The figures for August are set to be released on 8 September, with analysts anticipating that the unemployment rate will remain at 5.5%.

In the dynamic landscape of global business, Europe stands tall with a lineup of mega-corporations that have secured their positions as leaders in various industries. 

From luxury fashion houses to cutting-edge technology firms and energy giants, Europe’s top companies have made significant contributions to their sectors and the world economy. 

In this article, we delve into the profiles of the ten most valuable EU companies, exploring their market capitalisations, histories, and key contributions. 

1. LVMH, France 

Market cap: $443.70 Billion 

LVMH Moët Hennessy Louis Vuitton commonly known as LVMH, is a French multinational holding and conglomerate specialising in luxury goods, headquartered in Paris. 

LVMH controls around 60 subsidiaries that manage 75 prestigious brands. These include Tiffany & Co., Christian Dior, Fendi, Givenchy, Marc Jacobs, Stella McCartney, Loewe, Loro Piana, Kenzo, Celine, Sephora, Princess Yachts, TAG Heuer, and Bulgari. 

As of August 2023, LVMH has a market cap of $443.70 Billion. This makes LVMH the world’s 15th most valuable company. 

2. Novo Nordisk, Denmark 

Market cap: $420.87 Billion 

Novo Nordisk A/S is a Danish multinational pharmaceutical company headquartered in Bagsværd, Denmark, with production facilities in nine countries and affiliates or offices in five countries. 

Novo Nordisk manufactures and markets pharmaceutical products and services, specifically diabetes care medications and devices. Its main product is the drug semaglutide, used to treat diabetes under the brand name Ozempic and obesity under the brand name Wegovy. 

As of August 2023, Novo Nordisk has a market cap of $420.87 Billion. This makes Novo Nordisk the world’s 18th most valuable company. 

3. ASML, Netherlands 

Market cap: $263.40 Billion 

ASML Holding N.V. (ASML stands for Advanced Semiconductor Materials Lithography) is a Dutch multinational corporation founded in 1984. 

ASML specialises in the development and manufacturing of photolithography machines which are used to produce computer chips. The company is the sole supplier in the world of extreme ultraviolet lithography (EUV) photolithography machines that are required to manufacture the most advanced chips 

As of August 2023, ASML has a market cap of $263.40 Billion. This makes ASML the world’s 31th most valuable company. 

4. L’Oréal, France 

Market cap: $236.22 Billion 

L’Oréal S.A. is a French personal care company headquartered in Clichy, Hauts-de-Seine, with a registered office in Paris. 

It is the world’s largest cosmetics company and has developed activities in the field, concentrating on hair colour, skin care, sun protection, make-up, perfume, and hair care. 

As of August 2023, L’Oréal has a market cap of $236.22 Billion. This makes L’Oréal the world’s 40th most valuable company. 

5. Hermès, France 

Market cap: $217.36 Billion 

Hermès International S.A. is a French luxury design house established in 1837. 

It specialises in leather goods, lifestyle accessories, home furnishings, perfumery, jewellery, watches and ready-to-wear. Since the 1950s, its logo has been a depiction of a ducal horse-drawn carriage. 

As of August 2023, Hermès has a market cap of $217.36 Billion. This makes Hermès the world’s 44th most valuable company. 

6. Accenture, Ireland 

Market cap: $204.06 Billion 

Accenture plc is an Irish-American professional services company based in Dublin, specialising in information technology (IT) services and consulting. 

Accenture’s current clients include 91 of the Fortune Global 100 and more than three-quarters of the Fortune Global 500. As of 2022, Accenture is considered the largest consulting firm in the world by number of employees. 

As of August 2023, Accenture has a market cap of $204.06 Billion. This makes Accenture the world’s 52nd most valuable company. 

7. SAP, Germany 

Market cap: $164.50 Billion 

SAP SE is a German multinational software company based in Walldorf, Baden-Württemberg. 

It develops enterprise software to manage business operations and customer relations. The company is the world’s leading enterprise resource planning (ERP) software vendor. 

As of August 2023, SAP has a market cap of $164.50 Billion. This makes SAP the world’s 63rd most valuable company. 

8. Dior, France 

Market cap: $154.09 Billion 

Christian Dior SE is a French multinational luxury fashion house controlled and chaired by French businessman Bernard Arnault, who also heads LVMH. 

The company was founded in 1946 by French fashion designer Christian Dior. This brand sells only shoes and clothing that can only be bought in Dior stores. 

As of August 2023, Dior has a market cap of $154.09 Billion. This makes Dior the world’s 69th most valuable company. 

9. TotalEnergies, France 

Market cap: $152.10 Billion

TotalEnergies SE is a French multinational integrated energy and petroleum company founded in 1924 and is one of the seven supermajor oil companies. 

Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and international crude oil and product trading. TotalEnergies is also a large-scale chemicals manufacturer. 

As of August 2023, TotalEnergies has a market cap of $152.10 Billion. This makes TotalEnergies the world’s 71st most valuable company. 

10. Prosus, Netherlands 

Market cap: $138.92 Billion 

Prosus N.V., or Prosus, is a global investment group that invests and operates across sectors and markets with long-term growth potential. It is among the largest technology investors in the world. 

Prosus has invested across multiple verticals, including social/gaming, classifieds, payments and fintech, edtech, food delivery, and ecommerce. Products and services of its businesses and investments are used by more than 1.5 billion people in 89 markets. 

As of August 2023, Prosus has a market cap of $138.92 Billion. This makes Prosus the world’s 85th most valuable company. 

In conclusion, Europe is home to some of the world’s biggest and most successful companies in various fields like luxury goods, healthcare, technology, and energy. This mix of industries shows how strong Europe’s economy is and also offers chances to invest. 

If you’re interested in benefiting from these successful companies, you can think about trading their shares. VT Markets gives you the opportunity to trade Share CFDs for more than 140 top European companies. Share CFDs let you trade on how share prices go up and down without owning the shares directly. This means you can make money whether the prices rise or fall. 

You can start trading by opening a live account with VT Markets today. You’ll be able to trade EU Share CFDs with up to 20:1 leverage and a small commission of 0.1% for each lot you trade. This is your chance to be part of the success stories of Europe’s most important businesses. 

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Energy commodities are like the unsung heroes behind our everyday routines, quietly driving the world forward. 

Imagine this: the energy in a single gallon of gasoline can power a bicycle for two weeks straight. Now, let’s think big—when you flip a light switch, charge your phone, or start your car, you’re tapping into the huge energy sources that keep our modern lives running. 

Now, here’s the eye-opening part: every day, a massive 100 million barrels of oil are used around the world. Wrap your head around that number—it fuels millions of homes, keeps countless vehicles on the move, and supports industries making everything from clothes to gadgets. This unending demand is what makes energy trading so captivating. 

In this guide, we’ll dive into the nitty-gritty of energy trading, making the confusing stuff simple and highlighting the tactics used by smart investors to navigate this ever-changing market. Whether you’re trying to improve your trading skills or expand your investments, this guide is here to give you the knowledge you need to make good choices. Join us as we explore the energy trading world, breaking down its complexity to uncover the amazing potential hidden in energy resources—one barrel at a time. 

Energy Commodities 

Think of commodities as the building blocks of the global economy—the things that make everything tick. We can split them into two main groups: hard commodities and soft commodities. And each of these groups has its own little subdivisions: 

• _{Energies: This is where we find stuff like crude oil, heating oil, gasoline, and natural gas.} 
• _{Precious Metals: This includes valuable things like gold, silver, and palladium, dug up from deep within the Earth.} 
• _{Agriculture: This is all about the crops we grow for food, like sugar and wheat, as well as stuff like timber for building.} 
• _{Livestock and Meat: This is about raising animals like cattle, sheep, and hogs. They can end up as food or be used for things like gelatine and leather.} 

Among these, energy is the real star. It’s super popular to trade because it’s what keeps our world spinning. Imagine if there was no energy—we’d be stuck without transportation, phones, computers, and all sorts of machines. That’s why energy trading is a big deal for investors like you. 

On the global stage, we have both renewable and non-renewable energy sources. These are things we can trade all over the world: 

• _{Renewable Energy: This is stuff like solar power, wind power, hydropower (that’s power from water), and geothermal power (from the Earth’s heat).} 
• _{Non-renewable Energy: This covers things like crude oil, petroleum products, natural gas, coal, and nuclear energy.} 

Understanding the Energy Trading Market 

The world of energy trading is a dynamic space where the exchange, buying, selling, and predictions about energy commodities unfold across the global financial stage. 

Through these interactions, benchmarks for the value of different commodities are set, influenced by a dance of factors that tug at the balance between supply and demand. Traders, guided by their predictions of energy price shifts, jump into or wrap up trading positions accordingly. 

When we dig into the factors driving the rollercoaster of energy prices, a few key points come to light: 

• _{Growth in emerging markets: While developed countries tend to have steady energy demands, emerging markets paint a different story. These up-and-coming regions are on a fast track of growth, and their energy needs are shooting up. This surge in demand is set to have a big say in how energy commodities are priced, especially for resources favoured by rapidly growing economies.} 
• _{Population growth: The path of global population growth has a hefty impact on energy prices. With Earth’s population expected to keep climbing, the race for available energy resources heats up. While this affects all countries, it’s a particularly big deal for giants like China and India. These places are dealing with booming populations and people flocking to cities, which cranks up their energy usage.} 
• _{Energy penetration: Despite energy having a wide reach, large chunks of the developing world still lack access to electricity. As these regions take steps forward economically and industrialise, energy access spreads like wildfire, and you guessed it—demand shoots up.} 
• _{Industrialisation and developing economies: The rise of new global players marks an era of supercharged industrialisation and the matching hunger for energy. The energy choices these rising powers make are pivotal, adding to the buzz around certain energy sources. For traders looking ahead, understanding the energy paths countries like China and India take to meet their energy needs is a must.} 
• _{Energy efficiency: On the horizon, energy trading faces the challenge of the developed world’s relentless quest for more energy-efficient ways. This involves swapping out old-school energy sources for clean, renewable options. The ripple effects include a possible slowdown in demand for non-renewable resources in developed countries, contrasted with a growing appetite for sources like solar and wind power.} 

How Energy Trading Works 

Navigating the energy trading market offers a multitude of paths for investors to explore, each with its distinct advantages and intricacies. Let’s embark on a journey to uncover these diverse approaches: 

Physical Commodities Trading 

One route involves direct engagement with tangible energy commodities such as oil, natural gas, or heating oil. This entails buying and selling the actual materials. However, this path is often less chosen by individual traders due to the challenges associated with logistics and storage. 

Energy Stocks 

Another avenue is investing in the stocks of energy companies. For instance, purchasing shares in major oil corporations lets you indirectly partake in the shifts of the energy market itself. 

Derivatives Trading 

Derivatives like energy CFDs (contracts for difference) and spread betting provide a way to speculate on energy price movements without having to own the underlying assets. These tools offer flexibility and the potential for gains in both upward and downward markets. 

Energy ETFs 

Exchange-traded funds (ETFs) are like investment bundles that group together energy-related stocks. This strategy grants you diversification by allowing you to invest in a broader slice of the energy market without needing to handpick individual stocks. 

How to Trade Energies with VT Markets? 

Energy commodity markets are known for their high volatility, offering opportunities for short-term gains and often serving as a safe haven for investors in uncertain times. 

To begin trading energy stocks, commodities, or ETFs, consider practicing in a risk-free environment. VT Markets provides an obligation-free demo account, allowing you to simulate opening and closing positions. With 90 days to explore, you can learn about energy trading dynamics and understand how factors affect prices, including oil CFDs and energy company stocks. 

In addition to monitoring price charts and trends, a robust energy trading strategy includes staying informed about breaking energy commodity news. Keeping up with the latest developments impacting the energy sector and reading expert analyses is crucial. 

Remember, trading energy stocks may require in-depth analysis, as stock movements don’t always directly mirror commodity prices. VT Markets offers daily market analysis to help you gauge the impact of breaking news on your portfolio. 

Ready to trade energies in a user-friendly live trading environment? VT Markets can have you up and running, opening your first position in just minutes. Create your live trading account today and explore the potential opportunities the energy market holds to elevate your portfolio. 

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

This week, keep a close watch on Australia’s Consumer Price Index (CPI), the US Core Personal Consumption Expenditure (PCE) Price Index, and the US Jobs Report. These indicators could substantially impact market sentiment, amplifying the need for traders to exercise caution and stay well-informed to optimise their trading efforts throughout the week.

Here are some market highlights for the upcoming week:

US JOLTS Job Openings (29 August 2023) 

Figures from the US Job Openings and Labour Turnover Survey (JOLTS) indicate that the number of job openings in the US fell by 34,000 to 9.58 million in June 2023, the lowest level since April 2021.

The figures for July 2023 will be released on 29 August, with analysts expecting a slight drop to 9.57 million.

Australia’s CPI (30 August 2023)

Australia’s Consumer Price Index was up by 5.4% in June 2023, easing from the 5.5% rise observed in May 2023. 

Analysts predict a slower growth rate of 5.2% in the figures for July 2023, set to be released on 30 August.

US Core PCE Price Index (31 August 2023) 

Core PCE prices in the US, excluding food and energy, experienced a 0.2% increase in June 2023, easing from the 0.3% rise seen in May 2023.

The data for July 2023 is set to be released on 31 August, with analysts expecting a 0.2% growth.

US Jobs Report (1 September 2023)

The US economy created 187,000 jobs in July 2023, while the unemployment rate decreased to 3.5%. 

The figures for August 2023 will be released on 1 September, with analysts forecasting the addition of 180,000 more jobs. The unemployment rate is expected to maintain its level at 3.5%.

ISM Manufacturing PMI (1 September 2023 )

The ISM Manufacturing Purchasing Managers’ Index (PMI) for the US rose to 46.4 in July 2023 from 46 in June 2023. 

Analysts predict a reading of 46.6 in the index for August 2023, scheduled for release on 1 September.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.