Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
Weekly Market Preview
Friday, Dec 15, 2023
Last week concluded with a clearer perspective on the Federal Reserve’s upcoming policy, aligning somewhat with the market’s anticipation of potential US interest rate cuts. However, there was a discrepancy in the magnitude, with the market pricing in a reduction of more than 100 basis points, while it didn’t manifest in the Fed’s dot plot, which suggested a decrease of just over 75 bps. For further details on the Federal Reserve meeting, you can refer to this link.
The European Central Bank’s meeting mirrored its American counterpart, maintaining unchanged interest rates and signalling the end of the interest rate hike cycle. There were hints at a potential shift in the current monetary policy for the upcoming year, as the phrase “expecting high levels of inflation for longer” was removed from the ECB statement however, the central bank concluded that high rates could remain as necessary, suggesting a longer timeline than expected for initiating interest rate reductions.
In comparison, the Bank of England adopted a more hawkish stance, emphasizing the necessity for interest rates to stay elevated for an extended period. Despite this, markets still anticipate the possibility of commencing reductions in British interest rates next summer.
Looking ahead, this week brings a cluster of crucial data, notably European and British inflation levels, along with the Bank of Japan’s interest rate decision. Although no changes are expected in the current Japanese interest rate policy, investors will scrutinize any indications of a potential shift in the prolonged accommodative monetary policy. This anticipation aligns with the markets’ outlook, suggesting the Japanese central bank might consider raising interest rates in the first half of the coming year.
In terms of inflation levels, predictions indicate a decline in core Consumer Price Index (CPI) YoY from 4.2% in October to 3.6% in November for the Eurozone. Correspondingly, the UK’s core CPI YoY is anticipated to decrease from 5.7% in October to 5.5% in November. Consequently, any lower-than-expected data might encourage markets to factor in more significant cuts in the UK and Europe.
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
