Charting the markets: 5/1/24
Indices remain under pressure ahead of non-farm payrolls this afternoon, while a stronger US dollar has pushed down EUR/USD and GBP/USD while lifting USD/JPY to a three-week high.
Gold continues to weaken, while oil prices remain supported by tensions in the Red Sea.
(AI Video Summary)
US payrolls report
In todays "Charting the markets", Chris Beauchamp gives an update on the current state of the market and talks about an important upcoming report called the US payrolls report. He starts off by saying that the stock market has been a bit weaker lately after having made big gains in November and December. The reasons for this include changes in what people expect the Federal Reserve to do and some problems happening in the Red Sea. Because of these things, the US dollar has gotten stronger and people have been taking their profits from stocks.
Beauchamp also mentions that inflation has gone up in Europe, which has led people to think that the European Central Bank might cut interest rates. He says that right now everyone is really focused on the US payrolls report because there was a strong employment report from Australia. People are thinking that the report will show a rise in the unemployment rate to 2.8% and an increase in the number of jobs by about 171,000.
Indices analysis
He then moves on to talk about the FTSE 100, which is an index for the stock market in the UK. He says that it has gone down a bit from its highest point, but it's still doing better than it was six months ago. He thinks that it might go down a little bit more before going back up again. If it breaks above 7,750, that would show that it's likely to keep going up.
Next, Beauchamp talks about the NASDAQ 100, which is an index for technology companies. He says that it's been going down after a big increase in November. He thinks that people might continue to take their profits before the index goes up again.
USD, EUR and GBP analysis
He then talks about the foreign exchange market, which is where currencies are traded. He says that the US dollar has been getting stronger, which has made the euro and the British pound weaker. He expects the euro to keep going up unless it falls below 108.50. For the pound, he thinks it might get weaker in the short term, but if it goes back above 127, it could get stronger again.
Gold and Brent crude oil rundown
Lastly, he talks about the commodity markets, specifically gold and oil. He says that the price of gold has gone down lately because the US dollar has gotten stronger. If it goes below 1984, that would be bad for gold, but if it goes above 2060, that would be good. As for Brent crude oil, he says that recent attacks in the Red Sea have made oil prices go up. If they break above certain levels, he thinks they could go up even more.
Beauchamp finishes by saying that the US Payrolls report, which will be released later, could change things in the market. He advises viewers to be careful about how it might affect the US stock market when it opens.
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