The wheels are moving in markets as the focus turns to China as the risk of a massive Covid -based lockdown in Beijing is lowering stocks and the flow of funds is moving to other markets.
China indices
Indices
Stock market indices represent an index that measures a particular stock market or a segment of the stock market. These instruments are important investors because they help compare current price levels to previous prices to calculate market performance. The main two parameters for indices are that they are both investor and transparent. For example, investors can invest in a stock market index by buying an index fund, structured as a mutual fund or an exchange-traded fund, and tracking an index. The difference between the performance of an index fund and that of the index, if any, is called the tracking error. Most major countries boast multiple indices. Commonly traded indices include the S&P 500, NASDAQ-100, Dow Jones Industrial Average (DIJA), EURO STOXX 50, Hang Seng Index, and more. Stock market indices can be described or segmented by the range of the index range of stocks. The overall scope of an index forms an underlying group of stocks, usually grouped by the underlying investor demand. How to Trade Indices Retail brokers offer exposure indices through the use of contract-for-difference (CFD) or exchange-traded funds (ETFs). Each are popular ways to trade specific markets and are almost always offered by most brokers. Investors can choose between many types of indices that traditionally fall into several categories. These include country coverage, regional coverage, global coverage, exchange -based coverage, and sector -based coverage. All of the latter indices were weighed in many different ways. The most common mechanisms include market-capitalization weighting, free-float adjusted market capitalization weighting, volatility weighting, price weighting, and so on.
Stock market indices represent an index that measures a particular stock market or a segment of the stock market. These instruments are important investors because they help compare current price levels to previous prices to calculate market performance. The main two parameters for indices are that they are both investor and transparent. For example, investors can invest in a stock market index by buying an index fund, structured as a mutual fund or an exchange-traded fund, and tracking an index. The difference between the performance of an index fund and that of the index, if any, is called the tracking error. Most major countries boast multiple indices. Commonly traded indices include the S&P 500, NASDAQ-100, Dow Jones Industrial Average (DIJA), EURO STOXX 50, Hang Seng Index, and more. Stock market indices can be described or segmented by the range of the index range of stocks. The overall scope of an index forms an underlying group of stocks, usually grouped by the underlying investor demand. How to Trade Indices Retail brokers offer exposure indices through the use of contract-for-difference (CFD) or exchange-traded funds (ETFs). Each are popular ways to trade specific markets and are almost always offered by most brokers. Investors can choose between many types of indices that traditionally fall into several categories. These include country coverage, regional coverage, global coverage, exchange -based coverage, and sector -based coverage. All of the latter indices were weighed in many different ways. The most common mechanisms include market-capitalization weighting, free-float adjusted market capitalization weighting, volatility weighting, price weighting, and so on.
Read this Term fell sharply with the Shanghai SSE composite index falling -5.13%. The Hong Kongs Shanghai index fell -3.73%. Japan’s Nikkei fell -1.9% and Australia’s ASX/S&P 200 index fell -1.57%. Shares in Europe are lower and U.S. indices – after they fell more than 2.5% on major indices in fear of Fed tightening – are facing further losses in pre -market trading. This week is the most important release week of the current quarter with Microsoft, Alphabet, Meta, Apple, Amazon set to release results. That is just the beginning with Boeing, Paypal, servicenow, McDonalds, Merck, Intel, Twitter, Caterpillar, ExxonMobile also scheduled. Elon Musk and Twitter are talking and those parts are higher in pre-market trading.
The expected further slowdown in China has lower crude prices by more than 4%. Yields were lower than U.S. yields which dropped -10 basis points on the 5 -year record.
The flow of funds in forex has JPY
JPY
The Japanese yen (JPY) is the official currency of Japan and at the time of writing is the third most traded currency in the world behind only the US dollar and euro. The JPY is widely used as a reserve currency and relied upon by forex traders as a safe haven currency. Originally implemented in 1871, the JPY has a long history and has survived many world wars and other events. This was followed by the creation of the Bank of Japan (BoJ) in 1882 and the full JPY administration by the Japanese government in 1971 only. Japan has a history of maintaining a monetary intervention policy, which continues to this day. The BoJ also follows a policy of zero to near-zero interest rates and the Japanese government has previously had a strict policy against inflationWhat Factors Affects the JPY? Any further changes in the central bank’s monetary policy are closely monitored by forex traders. Additionally, the Overnight Call Rate is the primary short-term inter-bank rate. The BoJ uses the call rate to signal changes in monetary policy, which in turn will affect the JPY. The BoJ also buys both 10- and 20-year Japanese government bonds (JGB) monthly to inject liquidity into the monetary system. The resulting yield on the 10-year JGB benchmark helps serve as a key indicator of long-term interest rates. Economic data on the JPY is also very important. The most important of these releases in Japan are the gross domestic product (GDP), the Tankan survey (quarterly business sentiment and expectations survey), international trade, unemployment readings, industrial production, and money supply (M2+CDs).
The Japanese yen (JPY) is the official currency of Japan and at the time of writing is the third most traded currency in the world behind only the US dollar and euro. The JPY is widely used as a reserve currency and relied upon by forex traders as a safe haven currency. Originally implemented in 1871, the JPY has a long history and has survived many world wars and other events. This was followed by the creation of the Bank of Japan (BoJ) in 1882 and the full JPY administration by the Japanese government in 1971 only. Japan has a history of maintaining a monetary intervention policy, which continues to this day. The BoJ also follows a policy of zero to near-zero interest rates and the Japanese government has previously had a strict policy against inflationWhat Factors Affects the JPY? Any further changes in the central bank’s monetary policy are closely monitored by forex traders. Additionally, the Overnight Call Rate is the primary short-term inter-bank rate. The BoJ uses the call rate to signal changes in monetary policy, which in turn will affect the JPY. The BoJ also buys both 10- and 20-year Japanese government bonds (JGB) monthly to inject liquidity into the monetary system. The resulting yield on the 10-year JGB benchmark helps serve as a key indicator of long-term interest rates. Economic data on the JPY is also very important. The most important of these releases in Japan are the gross domestic product (GDP), the Tankan survey (quarterly business sentiment and expectations survey), international trade, unemployment readings, industrial production, and money supply (M2+CDs).
Read this Term as the strongest, followed by other safe haven currencies, CHF and USD, which are also rising. The AUD is the weakest as it faces declining demand from China (see the strongest to weakest currencies above).
U.S. Sec of State Blinken visited Ukraine over the weekend, where the U.S. said it intended to weaken Russia enough so that they could not invade again (or any time soon).
Macron defeated LePen a relatively easy way but the vote was closer compared to the last run -off 5 years ago (59% vs 41% vs 66% vs 34%).
In other markets:
- Spot gold was down $ -34 or -1.75% to $ 1896.10
- Spot silver dropped $ 0.67 or -2.8% to $ 23.42
- crude is trading at $ 97.42 down $ 4.65 or 4.56%
- Bitcoin dropped $ 526 from Sunday to $ 38,957.87
In the premarket for U.S. stocks, major indices were lower after Friday’s fall. The Dow’s fall on Friday was the worst since October 2020. The Nasdaq index is now down more than 20% from an all -time high again (it fell as much as -22.5% on March 14) .
- Dow industrial average -185 points after Friday -981.36 point plunge
- S&P index -29 points after Friday’s -121.88 point decline
- NASDAQ index -93 points after Friday -335.36 points decrease
European indices are also lower
- German DAX, -1.04%
- France’s CAC -1.6%
- UK FTSE -1.68%
- Ibex of Spain -0.3%
- Italy’s FTSE MIB -1.2%
The US debt market, yields are lower but their yield levels are low because investors are worried about slower growth:
- two years 2.613%, -6.0 basis points
- five years 2.854% -8.1 basis points
- 10 years 2.829%, -7.4 basis points
- 30 years 2.90% -5.0 basis points
in the European debt market, the benchmark 10 -year yield is also lower on flying safety flows and slower growth expectations:
