The Trade: deeper decline ahead for global indices amid cryptocurrency turbulence
IG's Tony Sycamore provides insight on the current volatile conditions affecting major indices like the NASDAQ and S&P, alongside the Australian equities and the implications for upcoming economic data releases.
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This video was created on 5 August for IG audiences by ausbiz.
IG's Tony Sycamore delves into the current unstable market conditions, focusing on significant downturns in indices such as the NASDAQ and S&P. Pointing out breaks in uptrend support that might signal further declines amid global tensions and recession worries. A potential drop in the NASDAQ 100 towards its 200-day moving average, noting the absence of market capitulation signs.
Australian equities are also wrestling with uncertainty. Fluctuating support levels for the S&P and upcoming economic data, like the ISM services PMI, are likely to affect both US and Australian markets and their currencies, especially with differing central bank policies contributing to the volatility.
In regards to the oil markets, where pricing strategies now have to consider not only demand concerns but also geopolitical tensions. A cautious buying strategy is suggested as that current levels might offer support despite the broader risk-off environment impacting global markets.
Cryptocurrencies, notably Bitcoin, were discussed as highly sensitive to risk aversion and economic indicators. The rapid price changes in digital currencies underscore the broader market instability and the high-risk nature of these investments during tumultuous times.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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