Weekly Market Update 15 - 04 - 2022

Welcome to your Weekly Market Update

We have seen another great week for in our Live Trading Room, we were able to bank another 1% for the week and so far we are up by 2.5% in just under two weeks. This is with us taking a lower risk of 0.5% on trades, which has us and our students with early access very happy.

We have seen oil prices continue their extreme price fluctuations as we saw prices head beyond $100 once again. We will be following up with more information about the Live Trading Room in the coming days.

  This week gone we were set for huge economic data, which resulted in most market participants keeping a keen eye, but not necessarily taking any action. We saw inflationary reports out from the U.S., U.K., EU zone as well as host of other nations. Unfortunately, all reports were still climbing higher resulting in central banks taking a harder line on their monetary policy.

Talks across the globe of reducing bond purchasing and increasing interest rates all point towards further testing times ahead.
This resulted in being cautious in our approach this week with new opportunities.

Twitter remained in the spot light this week as we saw a number of events unfold, firstly Elon Musk no longer wishing to be on the Board of Directors and then later in the week we saw an offer listed with the SEC to purchase 100% of Twitter’s shares. The latter doesn’t seem likely to go ahead, with major stake holders believing there is a much higher intrinsic value to the share price of Twitter than the $54.20 offer by Elon Musk.

We are still holding on to Twitter with our longer term positions.

Looking closer to the home for many of us… here in the Eurozone we are set for testing times ahead as there is a perfect storm brewing with many factors for everyone to consider. From the investors and traders trying to make more or protect their capital, to governments and central banks trying to combat spiralling costs, to the average individual feeling their purchasing power diminish alongside prices increasing everywhere!

What are the major factors of concern?

The war seems to be escalating and there seems to be less of a chance of a swift and peaceful end, as we see Russia issue new threats to other Nations looking to join NATO – Finland and Sweden.

We saw new heavier sanctions being placed on Russia, which could result in Europe's gas supply being disrupted.

Inflation is higher globally than it has been for decades.

Central Banks across the globe are trying to combat inflation with extreme monetary policy, that has seen investors analyse much slower future economic growth.

The dreaded term of inverted Bond Yields and other metrics all pointing towards declining economic growth and the potential for a recession.
 
Although many of these aspects are issues going on across the globe, the energy crisis for Europe may accelerate things.
 
To end on a slightly happier note, we hope you all have a fantastic Easter Bank Holiday weekend!
 
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]