Weekly Market Update 06 - 05 - 2022

Welcome to your Weekly Market Update

With a Bank Holiday to start things off, we only had 4 days of our Live Trading Room this week. Which saw us have 3 profitable days and 1 break even, allowing us to bank 1.5% for the start of May. That takes us to a total of 5% profit since we launched the Live Trading Room.

If you want to be able to trade and understand the markets better and to learn how an experienced trader approaches the markets, find out more about the Live Trading Room, what it is and how you too can take advantage of the oil market, click below.

Click here to find out more about the Live Trading Room.

Chart of Oil Prices

As you can see oil prices have once again pushed higher, as talks of further sanctions from the EU on Russian oil and gas raised fresh concerns about supply issues.

Elon Musk once again kept the markets entertained this week, as he spoke about potential plans of taking Twitter public once again in a proposed IPO, a few years down the line.

However, the rest of the market sentiment isn’t so joyful.

This week we have seen the Federal Reserve increase interest rates by a further 0.50%, the biggest hike in 22 years! That being said, they did reassure the public that it is unlikely for a 0.75% increase to be considered moving forward. This caused the stock market to spike higher, but just for the that night.

As we turned to Thursday, we saw sellers once again come back into play pushing back towards yearly lows on the major 3 indices (The Dow, The S&P 500 and the Nasdaq).

Chart of the Nasdaq 100 Index

This was fuelled by bleak news from Europe.

A number of ECB members are pushing for interest rate hikes within the eurozone, to combat the threat of increasing inflation rates, but this also points towards a recession looming as a result of the Russian – Ukraine conflict.

Here in the U.K. the Bank of England Governor was a lot more direct with the situation facing the U.K. stating that we could see inflation hit 10% this year, combating this by raising interest rates up to 1.00% as he also warned of a potential recession here as the economy is slowing down. As a result the GBP plummeted lower.

Chart of GBP/USD in 2022.

Until the next week’s Market Updates…Have a great trading week!

If you have any questions, click the button below to schedule in a call with ourselves or alternatively you can email us at [email protected]