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.
Recent decisions by central banks have significantly influenced global markets. In December 2023, the Bank of Japan (BoJ) and the Bank of Canada maintained key interest rates, while the European Central Bank (ECB) sustained multi-year high rates to combat inflation. Analysts expect these measures to continue. Key economic indicators, including manufacturing and services sector data, GDP, and inflation figures, will provide insights into the near-term market outlook.
Bank of Japan Rate Statement (23 January 2024)
In the final meeting of the year, the Bank of Japan (BoJ) unanimously decided to maintain its key short-term interest rate at -0.1% and 10-year bond yields at around 0%. Analysts are anticipating that the central bank will continue with the current interest rate levels in its upcoming meeting on January 23, 2024.
Bank of Canada Rate Statement (24 January 2024)
In December 2023, the Bank of Canada kept the overnight rate at 5%, marking the third consecutive meeting with unchanged rates. Analysts project a continuation of the current levels.
European Central Bank Rate Statement (25 January 2024)
In the European Union, the European Central Bank (ECB) sustained interest rates at multi-year highs for the second consecutive meeting in December 2023. This included signaling an early conclusion to its remaining bond purchase scheme as part of efforts to combat high inflation. Analysts are expecting a continuation of these interest rate levels at the ECB’s upcoming meeting on January 25, 2024.
Flash Manufacturing PMI (24 January 2024)
Turning to economic indicators, Germany’s manufacturing Purchasing Managers’ Index (PMI) increased from 42.6 to 43.3 between November and December 2023. In contrast, the UK and the US saw decreases in manufacturing PMIs, from 47.2 to 46.2 and 49.40 to 47.90, respectively. Forecasts for January 24, 2024, indicate anticipated manufacturing PMIs of 43.7 for Germany, 46.7 for the UK, and 47.6 for the US.
Flash Services PMI (24 January 2024)
Shifting to the services sector, Germany experienced a decline in its PMI from 49.6 to 49.3 between November and December 2023. In the same period, the UK’s services PMI increased from 50.9 to 53.4, and the US witnessed a rise in its services PMI from 50.8 to 51.4. Forecasts for January 24, 2024, suggest expected services PMIs of 49.1 for Germany, 53.0 for the UK, and 51.0 for the US.
US Advance GDP (25 January 2024)
In the United States, the American economy expanded at an annualised rate of 4.9% in the third quarter of 2023, slightly below the 5.2% second estimate but matching the initially reported 4.9% in the advance estimate. Looking ahead to the advance GDP release for the fourth quarter on January 25, 2024, analysts expect a slower growth rate of 2%.
US Core PCE Price Index (26 January 2024)
Finally, in the realm of inflation, Core PCE prices in the U.S., excluding food and energy, recorded a 0.1% increase from the previous month in November 2023. With data for December 2023 set to be released on January 26, 2024, analysts are forecasting a growth of 0.2%.
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.
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.
As part of our commitment to provide the most reliable service to our clients, there will be server maintenance this weekend.
Maintenance Hours :
20th of January 2024 (Saturday) 02:00-00:00 (GMT+2)
Please note that the following aspects might be affected during the maintenance:
1. The price quote and trading management will be temporarily disabled on MT5 during the maintenance. You will not be able to open new positions, close open positions, or make any adjustments to the trades.
2. There might be a gap between the original price and the price after maintenance. The gaps between Pending Orders, Stop Loss and Take Profit will be filled at the market price once the maintenance is completed. If you don’t want to hold any open positions during the maintenance, it is suggested to close the position in advance.
3. Please refer to MT5 for the latest update on the completion and market opening time. Our services will be back online once the maintenance is completed.
Thank you for your patience and understanding about this important initiative.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com
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.
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.
The U.S. dollar regained strength against major counterparts on Tuesday.
Supported by higher U.S. Treasury yields, market expectations for a March interest rate cut fell below 59%, down from 77% just one day prior.
Fed Governor’s Comments:
Fed Governor Christopher Waller’s statement suggested a cautious approach, indicating that the Federal Open Market Committee (FOMC) doesn’t need to ease its stance as rapidly as in the past.
This stance contributed to the strengthening of the U.S. dollar.
Currency Performance:
Euro, British pound, and Australian dollar experienced sharp declines against the U.S. dollar.
Notable thresholds were breached during this pullback.
Fed March Meeting Probabilities:
The probability chart from CME Group highlights the diminishing likelihood of a rate cut in March.
EUR/USD Technical Analysis:
EUR/USD exhibited a decline, breaking the lower boundary of a short-term rising channel at 1.0930.
The pair moved towards the 200-day simple moving average, a crucial support at just above 1.0840.
Maintenance of this support is imperative; failure may lead to a retracement towards 1.0770.
If downward pressure eases and prices rebound, technical resistance is anticipated at 1.0930, followed by 1.1020.
Further strength could shift focus to 1.1075/1.1095 and subsequently 1.1140.
STOCK MARKET ANALYSIS:
Market Overview:
US stocks encountered challenges on Tuesday as investors remained attentive to the trajectory of interest rates.
The lackluster start to the earnings season, particularly with big bank results, influenced market sentiment.
Performance Indicators:
Dow Jones Industrial Average (^DJI) concluded the session down 230 points, influenced notably by Boeing’s (BA) negative performance (-7.89%).
S&P 500 (^GSPC) experienced a 0.4% decline.
Nasdaq (^IXIC) closed slightly lower despite intermittent shifts into positive territory, driven by movements in chipmakers Nvidia (NVDA) and Advanced Micro Devices (AMD).
Key Stock Movements:
Goldman Sachs (GS) stock edged slightly higher following a reported fourth-quarter earnings increase of 51% year over year.
Morgan Stanley (MS) shares dipped up to 4% during the session but posted fourth-quarter revenue that exceeded Wall Street expectations.
Upcoming Retail Sales Report:
Investors await Wednesday’s retail sales report, anticipating its impact on the Federal Reserve’s data-driven policy decisions.
Last week’s unexpected cooling in US wholesale inflation increased hopes for a potential interest rate cut in March.
Fed Governor’s Perspective:
Fed Governor Chris Waller expressed belief in the Fed’s ability to lower interest rates in the coming year, contingent on inflation remaining in check.
He emphasized that the timing and extent of rate cuts will hinge on incoming economic data.
Corporate Developments:
A federal judge intervened in the merger deal between Spirit Airlines (SAVE) and JetBlue (JBLU) due to antitrust concerns.
Spirit Airlines faced a significant 47% drop in its stock value following the news of the blocked merger.
Overall Sentiment:
The market remains cautious and attentive to various factors, including corporate earnings, interest rate expectations, and economic data, influencing trading decisions and overall sentiment.
In the shadows of the 17th-century Amsterdam, a groundbreaking financial experiment unfolded, forever altering the course of economic history. The year 1602 saw the birth of the Amsterdam Stock Exchange, a brainchild of the Dutch East India Company, marking the world’s inaugural official stock exchange.
The Amsterdam Stock Exchange source: The Low Countries
Under the canopy of a buttonwood tree on Wall Street, 24 stockbrokers laid the groundwork for organised securities trading, introducing the novel concept of issuing shares to the public.
Fast forward to today, where the once humble origins have burgeoned into a global financial behemoth. With a staggering size surpassing $100 trillion, the modern stock market stands as a testament to the enduring legacy of those early investors and the evolution of financial markets through centuries.
Whether you’re a novice or a seasoned investor, understanding the basics is key to navigating the complexities of the stock market. In this comprehensive guide, we’ll delve into the essentials of stocks and Share CFDs, with a special focus on popular trading strategies.
source: ABC News
Stocks: Unlocking Ownership and Dividend Potential
At its core, a stock symbolises ownership in a company, with popular names like Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Google’s Alphabet (GOOGL) exemplifying this ownership’s profound impact. Investors holding these stocks actively participate in globally influential companies.
Beyond theoretical ownership, shareholders hold significant rights. This includes voting on corporate decisions and attending pivotal annual shareholder meetings, allowing active engagement in corporate governance.
Stock ownership’s allure extends to the potential for dividends, a feature prominent in dividend-paying stocks like Johnson & Johnson (JNJ), Coca-Cola (KO), Procter & Gamble (PG), and McDonald’s (MCD). These stocks appeal to investors seeking a steady income stream, enhancing the overall return on investment.
In essence, owning stocks aligns investors with a company’s success and prosperity. It’s not just financial; it’s a connection to brands and businesses shaping our daily lives. Investors in these well-known companies become integral contributors to ongoing success and innovation in the business world.
Stock Exchanges: The Pulsating Heart of Global Trading
Major stock exchanges worldwide serve as the epicentres where the world’s most influential stocks are bought and sold, shaping the landscape of global finance. Two giants stand out in this domain – the New York Stock Exchange (NYSE) and NASDAQ.
The Largest Stock Exchanges in the World 2023 source: Visual Capitalist
The New York Stock Exchange (NYSE), located on Wall Street in New York City, is the largest and most prestigious stock exchange globally. It boasts a rich history dating back to 1792, providing a platform for some of the most prominent and established companies.
NASDAQ, on the other hand, is renowned for its technology-focused listings and electronic trading platform. Born in 1971, it has become synonymous with innovation and hosts many of the world’s leading technology companies.
In Europe, the London Stock Exchange (LSE) stands as a financial powerhouse, hosting a diverse array of companies. Meanwhile, the Euronext group, spanning Amsterdam, Brussels, Dublin, Lisbon, Milan, and Paris, plays a pivotal role in European trading.
Turning our attention to Asia, the Tokyo Stock Exchange (TSE) in Japan and the Hong Kong Stock Exchange (HKEX) command significant influence. These exchanges contribute to the vibrancy and dynamism of the Asian financial markets.
These exchanges are more than mere facilitators; they are the driving forces shaping stock prices globally. The dynamic interplay of supply and demand on these platforms directly influences the valuation of stocks.
Understanding the mechanics of stock exchanges, particularly the NYSE and NASDAQ, is essential for investors seeking to decipher the intricate forces that shape market trends and individual stock prices. As investors, being attuned to the activities on these exchanges equips us to navigate the complexities of the global financial arena.
Stocks and other financial instruments: Navigating the financial landscape
In the expansive realm of financial instruments, it’s vital to differentiate between various assets. Beyond stocks, investors encounter bonds and Exchange-Traded Funds (ETFs), each with its unique characteristics.
Bonds, in contrast to stocks, represent debt rather than ownership. When an investor buys a bond, they are essentially lending money to a company or government entity. In return, the bondholder receives periodic interest payments and the eventual return of the principal amount.
Exchange-Traded Funds (ETFs), on the other hand, are investment funds that trade on stock exchanges. ETFs offer a diversified investment approach by bundling together a collection of stocks, bonds, or other assets. They provide investors with a way to gain exposure to a broad market or sector without directly owning individual securities.
Understanding these financial instruments allows investors to tailor their portfolios to match their risk tolerance, investment goals, and preferences.
Stocks vs Share CFDs: Navigating investment avenues
Share CFDs, or Contracts for Difference, are financial derivatives that allow traders to speculate on the price movements of underlying stocks without actually owning the shares.
Unlike traditional stock trading, where investors physically buy and own shares in a company, CFDs are contracts between traders and brokers.
The derivative nature of CFDs lies in their ability to derive their value from the underlying asset, in this case, stocks. This derivative structure opens up a world of advantages for traders, enabling them to profit from both rising and falling markets.
Advantage 1: Leverage
One of the key advantages of share CFDs is the ability to trade with leverage. Leverage allows traders to control a larger position size with a smaller amount of capital. While this magnifies potential profits, it’s crucial to note that it also amplifies potential losses. This feature makes CFDs an attractive choice for traders seeking to maximise their market exposure without the need for a substantial upfront investment.
Advantage 2: Short Selling
Share CFDs provide a unique opportunity for traders to profit from falling prices through short selling. In traditional stock trading, short selling is often complex and may involve borrowing shares, but with CFDs, this process is streamlined. Traders can take advantage of market downturns by selling CFDs on stocks they anticipate will decline in value, potentially yielding profits even in bearish market conditions.
Advantage 3: Diversification
Diversification is a cornerstone of sound investment strategy, and share CFDs offer a compelling way to achieve it. With CFDs, traders can access multiple assets with a smaller capital requirement compared to traditional stock trading. This not only enhances risk management but also provides the flexibility to explore diverse markets and sectors.
If you’re an active, short-term trader seeking flexibility and leverage, share CFDs are ideal. Designed for day and swing traders comfortable with increased risk, CFDs allow you to profit in both rising and falling markets. With 24/5 trading, global market exposure, and lower transaction costs, they suit those wanting diverse opportunities.
Share CFDs Trading Tips: A Strategic Approach
Engaging in share CFDs trading demands a strategic mindset. To streamline your approach, focus on these five essential tips:
1. Thorough Research: Prioritise in-depth research on underlying assets, staying informed about market trends, company performance, and global economic factors.
2. Effective Risk Management: Set clear stop-loss and take-profit levels to manage risks diligently. Discipline in risk management is crucial in the unpredictable world of CFD trading.
3. Understand Leverage: Use leverage judiciously, considering its impact on both profits and potential losses. Avoid excessive leverage to mitigate significant financial risks.
4. Stay Informed: Regularly check economic calendars and major market events. Earnings reports, economic indicators, and geopolitical developments can significantly influence asset prices.
5. Continuous Learning: Embrace ongoing education to stay current on market trends, trading strategies, and industry developments. A commitment to learning enhances trading proficiency and adaptability over time.
Incorporating these key tips into your trading strategy will provide a solid foundation for navigating the dynamic landscape of Share CFDs with confidence.
Trading Share CFDs with VT Markets
Discover a wealth of share CFDs trading opportunities with VT Markets, offering access to over 800 leading companies from the US, UK, EU, and Hong Kong.
Leverage up to 20:1 to maximise your trading potential, taking both long and short positions for as low as $0 per trade. This flexibility empowers you to profit from fluctuations in share prices, whether they rise or fall.
Ready to embark on live trading? Open a live trading account with VT Markets for real-time market access. If you’re still refining your strategies, take advantage of the risk-free demo account. Test your approaches and get acquainted with the platform before committing real capital.
VT Markets provides a user-friendly experience for traders of all levels, ensuring you have the tools needed to navigate the dynamic world of share CFDs with confidence.
In conclusion, success in trading stocks and share CFDs demands a strategic approach, disciplined risk management, and continuous learning. Whether you prefer traditional stocks or the flexibility of CFDs, confidence stems from knowledge and a well-crafted strategy. Happy trading!
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.
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