Stocks rise ahead of a busy week
BoJo unlikely to lose no-confidence vote
China’s easing of lockdowns help sentiment
Central Bank tightening could come back to haunt investors
Focus turns to RBA and ECB
- RBA: The Reserve Bank of Australia lifted interest rates by 25 basis points at its last meeting, which was 10 more than expected. It is set to hike again. The main uncertainty is whether it will be a 25bp hike to 0.60% as it did in May or a 40bp increase to 0.75%, back to where the cash rate was pre pandemic and to realign with the 25bp increments it has historically moved the cash rate by.
- ECB: While no rate hikes are expected at the June 9 meeting, Christine Lagarde and her ECB colleagues will use this to prepare the markets for what is to come later in the summer. In July, the ECB is seen lifting the deposit rate from the current -0.5% by a quarter-point. But one thing that is almost certain is that the ECB will announce an end to bond purchases this week. It will therefore formally join global peers tightening monetary policy in the face of hot inflation.
FTSE testing resistance
How to trade with City Index
Open an account, or log in if you’re already a customer
From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.
City Index is a trading name of StoneX Financial Pty Ltd.
The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.
While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.
StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.
It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.
StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.
© City Index 2024