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, Feb 16, 2024
In the previous week, all eyes were on the US Consumer Price Index (CPI) data for January, revealing inflation levels higher than anticipated. The year-over-year (YoY) core CPI remained unchanged at 3.9%, consistent with the previous month, while the YoY CPI headline surpassed expectations of 2.9% and came at 3.1%. These numbers suggested that the Federal Reserve might extend the period of high interest rates, reducing the likelihood of initiating an interest rate reduction cycle in May and making a June start more probable. This viewpoint was reinforced by Federal Reserve Member Mr. Bostick, who stressed the lack of urgency in implementing interest rate cuts. As a result, US stock indices and gold prices experienced declines, while the US dollar strengthened in response to the possibility of delayed interest rate reductions.
Looking forward to the current week, the agenda will be lighter, with Monday being a bank holiday in the US and Canada. Nevertheless, market focus will be on speeches from Federal Reserve Committee members and the release of the Federal Open Market Committee (FOMC) meeting minutes for January. Investors will carefully examine the meeting minutes for any indications of the potential timing for interest rate reductions. Additionally, attention will be on preliminary data for February’s purchasing managers’ indices (PMIs) in the Manufacturing and Service sectors for the United States, the Eurozone, and the UK. Should the services sector sustain high levels this will be considered a sign of strong demand, potentially leading to a delayed decline in inflation levels to the targeted 2%. This circumstance would necessitate maintaining current interest rates for an extended period, potentially impacting stock index prices negatively.
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.
