This week was dominated by two events, the terrorist attacks in Belgium and the increasing talk of a possible interest rate rise by the Federal Reserve Bank in the United States. Together they put a halt on an ongoing 5 week rally for investors in the global markets, that had erased most of the losses from earlier this year.
The Central Bank of the United States some claim may raise interest rates as early as next month. Other analysts disagree, but the uncertainty is still permitting the American dollar to move up in valuation against most major world currencies this week.
The aforementioned circumstances have all led to a retrenchment in price of oil and other commodities including precious metals. Crude prices worldwide are now heading back and below $40 USD (United States Dollar) once again.
Gold is now dropping towards the $1,200 benchmark at just over $1217.00 USD and silver has headed back down, but remains above $15 at $15.30 USD. Platinum and palladium are at $951.00 USD and $578.00 USD respectively.
Before these latest happenings, there was a strong indication that a modest recovery in Europe was underway. This was despite the slower demand in the economy at large. A rate of 0.3% rate of growth is now expected for the first quarter of 2016.
The refugee crisis in Europe reached a new level of urgency, with the terrorist attacks on the transportation hub of Brussels. Since the previous attacks on Paris originated in the Belgian capital as well, it is putting a chill on tourism to the country.
A contentious and wishful migrant deal was agreed upon between Turkey and the European Union (EU). Under the pact, migrants that arrive in Greece will be sent back, once the registration process is complete and their asylum claim has been processed.
In exchange Turkey will receive the equivalent of an additional $6.8 billion USD to help defray the costs of the estimated 2.7 million Syrians, that now reside in Turkey. The EU also will take in 72 thousand refugees directly from Turkey, from those that have the most legitimate asylum claims for permanent residence in Europe.
In Greece, talks ended without an agreement on the terms attached to the ongoing bailout. It is putting additional pressure to a domestic economy, already buckling under capital controls and the arrival of 1 million migrants in the past year.
Extra funds for Greece are locked as negotiations drag on between government officials and creditors over differences with domestic tax reforms, pension cuts and fiscal targets.
Also in Europe, Hungary has now become the first emerging market to introduce negative interest rates. The overnight deposit rate has dropped 15 basis points to -0.05%. The key base rate was also lowered by 15 b.p. to 1.2%.
The move was made by officials in response to lower prospects for both growth and inflation, in the stagnating Hungarian economy.
In the United Kingdom support for leaving the EU is growing and is threatening to create a rupture in the ruling Conservative Party. In a sign of coming trouble Brexit supporter Iain Duncan Smith from the cabinet of Prime Minister Cameron has recently resigned.
The present rise in oil bankruptcies although creating a disruption in the United States economy, is unlikely alone to tip the country into recession this year.
Frustration is rising in Iran. Although international sanctions ended more than two months ago, few trade deals worth up to a total of $50 billion USD, have been fully implemented. Reason for this delay, is that few major world banks are willing to process Iranian transactions.
There is still rules in place that prohibit the use of American dollars and accessing the United States financial system.
In Australia, Liberal Prime Minister Turnbull has threatened to dissolve parliament and call for early elections, if his reforms are not approved. Although only six months on the job, he is growing increasingly frustrated with senators from minor parties, who continue to block key legislation proposed by the new government.
The central bank of China is expressing concern about the Chinese corporate debt level. Lending as a share of GDP (Gross Domestic Product) has grown far too high. The hope is that capital markets will expand as the bank pulls back on excessive amounts of lending. More private investments will be needed to fill in the funding gap.
Chinese foreign exchange reserves are falling rapidly and internal debt is increasing dramatically.
Tensions continue to rise on the Korean peninsula. North Korea fired multiple short range missiles this week in protest to the ongoing South Korean-United States military drills.
In Brazil, Dilma Rousseff is assuring her supporters that she has no intention of resigning. The beleaguered President further claims, that the impeachment proceedings against her amounts to a coup attempt.
Her appointment of her predecessor as a chief adviser to protect him from prosecution, has raised the rancor against her by the political opposition.
Brazilian stocks tumbled even further, on news that the construction giant Odebrecht had agreed to cooperate, in what is now the largest corruption probe in the history of the country. The firm has agreed to this in exchange for leniency, in the event of future prosecutions.
Stock Fills For The Previous Weeks
Mar 18, 2016 ———0 Target Fills & 2 Early Target Fills
Mar 11, 2016 ——– 2 Target Fills & 3 Early Target Fills
Mar 04, 2016 ———1 Target Fill & 2 Early Target Fills
Feb 26, 2016———- 2 Target Fills
Feb 19, 2016———- 0 Target Fills & 2 Early Target Fills
Feb 12, 2016 ———05 Target Fills
Feb 05, 2016 ———05 Target Fills & 4 Early Target Fills
Jan 29, 2016 ———01 Target Fills & 2 Early Target Fills
Jan 22, 2016——— 08 Target Fills
Jan 15, 2016 ———09 Target Fills
Jan 07, 2016 ——– 10 Target Fills
Dec 31, 2015 ——–1 Target Fill
Dec 24, 2015 ——–0 Target Fills
Dec 18, 2015 ——–4 Target Fills
Dec 11, 2015 ——–2 Target Fills
Dec 04, 2015 ——–4 Target Fills
Nov 27, 2015 ——- 1 Target Fill
Nov 20, 2015 ——- 6 Target Fills
Nov 13, 2015 ——–6 Target Fills
Nov 06, 2015———5 Target Fills
Oct 30, 2015——— 2 Target Fills
Oct 23, 2015 ——– 2 Target Fills
Oct 16, 2015 ——– 2 Target Fills
Oct 09, 2015 ——- 1 Target Fill
Oct 02, 2015 ——–5 Target Fills
Sept 25, 2015 ——-1 Target Fill
Sept 18, 2015 —— 2 Target Fills
Sept 11, 2015 —— 1 Target Fill
Sept 04, 2015—— 2 Target Fills
August 28, 2015 6 Target Fills
August 21, 2015 – 2 Target Fills
August 14, 2015 –-1 Target Fill
August 07,2015 —2 Target Fills
July 31, 2015 ——1 Target Fill
July 24, 2015 ——1 Target Fill
July 17, 2015——-3 Target Fills
July 10, 2015—— 1 Target Fill
July 03, 2015—— 0 Target Fills
June 26, 2015—– 3 Target Fills
June 19, 2015 —- 2 Target Fills
June 12, 2015—–2 Target Fills
June 05, 2015—–4 Target Fills
May 29, 2015 —- 5 Target Fills
May 22, 2015—– 2 Target Fills
May 15, 2015 —–2 Target Fills
May 08, 2015 —–1 Target Fill
May 01, 2015 —- 3 Target Fills
April 24, 2015—- 2 Target Fills
April 17, 2015 —-5 Target Fills
April 10, 2015 —-3 Target Fills
@ 2014 The Day Trading Academy. All rights reserved. This work is based on SEC filings, interviews, corporate press releases, and extensive research done across investment articles, current events, and investment expertise. It may contain errors, and you shouldn’t make any financial decision based solely on what you read here. It’s your money and your responsibility. As with any investment, there is no guarantee against potential loss. Members should be aware that investment markets have inherent risks and there can be no guarantee of future profits. Likewise, past performance does not assure future results. This publication’s sole intended purpose is to provide investment-related information as well as education and opinions to subscribers and the recommendations and analysis presented to members is for the exclusive use of members.