06/27 Market report

【Dow Jones】

Wall Street is buzzing about the possibility of a U.S. recession. Even though the markets were fuelled by risk aversion and U.S. Treasury yields hitting a sharp decline, the market sentiment for the Dow improved on Friday.

Judging by the data, the long-term inflation projection of the University of Michigan in the United States is expected to fall from the 14-year high reported at the initial value which may reduce the urgency of a more substantial interest rate hike.

James Bullard, president of St. Louis Union Bank who is a hawkish general in the JBI, also boosted investor confidence on Friday. Brad said the U.S. economy has shown great resilience and it is premature to debate the possibility of a recession.

The Dow Jones index rose sharply on Friday, directly breaking through the lower consolidation pattern. Although there is a big rise, the long-term price trend has not broken the previous wave high. From the death cross of Alligator, we can still see a long-term short square pattern. The short-term KD shows high-end bluntness which indicates that there is buying strength on the short-term line. The short-term buying momentum currently dominates the current price.

【EUR】

European Commission President Ursula von der Leyen said the EU would push member states to spend 300 billion euros over the next five years to aid infrastructure projects in developing countries .

The price of the euro has recently begun to flatten and the long-term Alligator has begun to converge from a death cross. Although the long-term bearish force has begun to decline, the KD has turned into a golden cross. The euro is currently consolidating in the short-term band.

【Gold】

U.S. President Joe Biden and the rest of the G7 leaders will reach an agreement to announce a ban on new gold imports from Russia. This will be the latest sanctions after Russia's invasion of Ukraine.

The leaders will announce the joint commitment at a summit in Germany, which runs from Sunday to Tuesday. The U.S. Treasury Department will issue an import ban on Tuesday.

The price of gold continues to oscillate between $1800 per ounce and $1850 per ounce as the G7 began to ban the purchase of Russian gold. KD shows a reduction in the purchase price of gold, but due to the increase in international turmoil, the follow-up impact is likely to cause gold to increase again. Gold prices are currently in consolidation and waiting for a catalyst for a breakthrough.

【Crude Oil】

India's state-owned Indian Oil Corp is in talks with Russian energy giant Rosneft Oil for more oil contracts.

Not only India, other countries including China and Turkey, have also increased their purchases of Russian oil. The Western countries have been trying to restrict Russian oil and gas exports but some countries including India have become major buyers of Russian oil.

Crude oil price rebounded after a pull back. The long-term Alligator entered a death cross, while the short-term KD also in a high-end blunt. The selling pressure had been heavy and if the price of crude oil rebound is weak, it is easy for the trend to enter a sideways cycle.

OnePro Special Analyst

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