Important Information

You are visiting the international Vantage Markets website, distinct from the website operated by Vantage Global Prime LLP
( www.vantagemarkets.co.uk ) which is regulated by the Financial Conduct Authority ("FCA").

This website is managed by Vantage Markets' international entities, and it's important to emphasise that they are not subject to regulation by the FCA in the UK. Therefore, you must understand that you will not have the FCA’s protection when investing through this website – for example:

  • You will not be guaranteed Negative Balance Protection
  • You will not be protected by FCA’s leverage restrictions
  • You will not have the right to settle disputes via the Financial Ombudsman Service (FOS)
  • You will not be protected by Financial Services Compensation Scheme (FSCS)
  • Any monies deposited will not be afforded the protection required under the FCA Client Assets Sourcebook. The level of protection for your funds will be determined by the regulations of the relevant local regulator.

If you would like to proceed and visit this website, you acknowledge and confirm the following:

  • 1.The website is owned by Vantage Markets' international entities and not by Vantage Global Prime LLP, which is regulated by the FCA.
  • 2.Vantage Global Limited, or any of the Vantage Markets international entities, are neither based in the UK nor licensed by the FCA.
  • 3.You are accessing the website at your own initiative and have not been solicited by Vantage Global Limited in any way.
  • 4.Investing through this website does not grant you the protections provided by the FCA.
  • 5.Should you choose to invest through this website or with any of the international Vantage Markets entities, you will be subject to the rules and regulations of the relevant international regulatory authorities, not the FCA.

Vantage wants to make it clear that we are duly licensed and authorised to offer the services and financial derivative products listed on our website. Individuals accessing this website and registering a trading account do so entirely of their own volition and without prior solicitation.

By confirming your decision to proceed with entering the website, you hereby affirm that this decision was solely initiated by you, and no solicitation has been made by any Vantage entity.

I confirm my intention to proceed and enter this website Please direct me to the website operated by Vantage Global Prime LLP, regulated by the FCA in the United Kingdom

By providing your email and proceeding to create an account on this website, you acknowledge that you will be opening an account with Vantage Global Limited, regulated by the Vanuatu Financial Services Commission (VFSC), and not the UK Financial Conduct Authority (FCA).

    Please tick all to proceed

  • Please tick the checkbox to proceed
  • Please tick the checkbox to proceed
Proceed Please direct me to website operated by Vantage Global Prime LLP, regulated by the FCA in the United Kingdom.

×

Are you long or short on indices?

Trade Indices Now >
Long Or Short On Indices?
View More
SEARCH
  • All
    Trading
    Platforms
    Academy
    Analysis
    Promotions
    About
  • Search
Keywords
  • Forex Trading
  • Vantage Rewards
  • Spreads
  • facebook
  • instagram
  • twitter
  • linkedin
  • youtube
  • tiktok
  • spotify

S&P 500 flirts with 5,000 as Nvidia slides

Vantage Updated Updated Wed, 2024 April 17 08:59

Headlines

* Dollar edges down below 106 from five and a half month highs

* S&P 500 slides for fourth straight loss, Nasdaq and semiconductors drop

* UK CPI at lowest level in two and a half years, services inflation still sticky

* Gold moves off its record close above $2,400 even as yields falls

FX: USD fell for the first time in five sessions after making fresh cycle highs on Tuesday at 106.51. Markets were still digesting Fed Chair Powell’s comments that elevated inflation had not given the Fed greater confidence. That meant rates could remain where they are for as long as needed, as it will take longer to get to target. This all confirmed market doubts about how much the Fed will be able to cut rates his year. And underpins solid support for the dollar unless data turns sharply.

EUR stopped the six-day losing streak. But policy divergence is now the key theme. This was highlighted by Powell’s speech and ECB President Lagarde’s comments that the bank is ready to cuts rates if inflation keeps easing. Support sits just below 1.06. Prices need to hold above 1.07 to slow the downtrend. The final March CPI reading was left unchanged at 2.4%.  

GBP gave up half the gains from most of the day after mildly hotter than expected CPI data. Services inflation came at 6% while core remains above 4%. But sterling was sold later in the day after BoE Governor Bailey said he expects a strong drop in inflation next month. Certainly, helpful base effects should drag the data lower in the months ahead. Support in cable is at 1.2364.

USD/JPY traded in a narrow range not quite beating the high from Tuesday at 154.78. The 10-year Treasury yield fell back after printing multi-month highs on Tuesday at 4.69%.

AUD steadied near the recent low trading just above 0.64. Focus is on today’s jobs data. USD/CAD had a similar trading day holding just below recent highs. Markets are reluctant to fully price a 25bp rate cut in June. BoC Governor Macklem recently noted that BoC/Fed monetary policy can diverge, but there were limits to how far that can go.

Stocks: US equities fell again as tech led the losses. The broad-based benchmark S&P 500 finished 0.58% lower at 5022 for a fourth consecutive down day. The tech-heavy Nasdaq 100 lost 1.24% to close at 17,493. The Dow Jones outperformed down 0.12% to settle at 37,753. It’s the longest losing streak for the S&P 500 since the first week of the year. Chip stocks fell with the semiconductor index down 3.2%. The SOX is now down over 6% on the month after advancing nearly 50% over the past 12 months.

Asian Stocks: APAC futures are mixed. Markets traded mixed after the heavy recent selling. The Nikkei 225 was choppy after mixed trade figures. The ASX 200 was muted after Rio Tinto’s quarterly production update showed a fall in iron output and shipments form a year ago.

Gold printed another modest red candle, even though yields fell. It’s a healthy “pause for breath” though Friday’s spike record high at $2431 does look tough to beat in the near term.

Day Ahead – Australia Jobs

Headline employment is expected to print at around +15k for March while the unemployment rate is seen ticking up two-tenths to 3.9% from the prior 3.7%. That would be more broadly in line with the well-established, gradual uptrend over last year.

The February report showed a surprising surge in job gains of 116.5k, so a correction is expected, with seasonal dynamics expected to fade.  The RBA, like every central bank, are monitoring incoming data intently. But the latest inflation data has been encouraging even though the labour market remains tight.

Chart of the Day – AUD/USD struggling in risk sensitive environment

The risk mood and higher US rates are overshadowing aussie fundamentals at present. That could put the Aussie more at risk of a further decline in the short term than a material rebound. Domestically, inflation could print higher than expected for a couple of months and should make the RBA look relatively hawkish. China’s growth story has marginally also improved of late. That should be a positive theme for the highly exposed AUD.

The major posted a five-month low at 0.6389 on Tuesday. The next bear target is at 0.6338. The previous year-to-date low from mid-February is at 0.6442 which may act as initial resistance. Above here is a major Fib retracement level around 0.65.