The lower real rate is supporting the NAS100
As the real yield has diminished, the NAS100 has found support.
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As the real yield has diminished, the NAS100 has found support.
Today’s preliminary data showed that Eurozone and Germany manufacturing activity contracted in July, but the German index is constructive
US30 turns risk-off following the report that President Biden has tested positive for Covid.
The US30's strength may prove to be a bounce in a downtrend.
Considering the weekly timeframe, FXCM's Nasdaq CFD, NAS100, shows a decline (top chart) as the real interest rate appreciates (middle chart). As risk increases, capital will rotate out of the risk asset into a safer income-yielding investment. Moreover, the NAS100's required rate of return has increased, and its present value has adjusted downwards.
As Q2 earnings season officially starts, we consider two SPX500 daily charts.
The index slides this week, as markets gear up for another Inflation update on Wednesday and the new earnings season which gets underway
Q2 earnings kick off this week. This season will make PE analysis very interesting, given its decline towards its historical mean.
The German index starts the week with caution, as investors remain jittery due to fears of an economic downturn, with the maintenance shutdown of Nord Stream weighing on sentiment
The US30 looks to be charting a bullish flag pattern in the short term.
The Nasdaq is a growth index. This classification is notable because rising interest rates hit the growth side of the market hardest. So whether or not we have seen most of the move in yields is an important question? For example, a base will suggest possible value. However, this is not yet the case; technically speaking, the Nasdaq is in a very precarious position.
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