Debt Limit Negotiations and Non-Farm Payrolls Data Take Center Stage in US Markets

Based on the following article, I offer some suggestions that I hope even a novice can understand:

– If you want to invest in the U.S. stock market, consider buying individual stocks that are outperforming, such as Ford, Tesla, Gap, or Marvell, or buying S&P 500 index funds to share in the dividends of the U.S. economic recovery.

– If you want to invest in the European stock market, consider buying the German DAX 30 Index Fund or the French CAC 40 Index Fund, as the European economy is gradually recovering and the Euro is expected to rebound against the U.S. dollar.

– If you want to invest in Asian stocks, consider buying the Japanese Nikkei 225 Index Fund or the Korean KOSPI Index Fund, as both markets are supported by exports and the technology sector, and there is room for the yen and won to rise against the U.S. dollar.

– If you want to invest in the commodity markets, consider buying crude oil futures or options, as OPEC+ will likely maintain the production cut agreement and global demand are recovering. You might also consider selling natural gas futures or options, as the commodity is oversupplied and prices have fallen below important support levels.

– If you want to invest in the gold market, you might consider selling gold futures or options because the U.S. debt ceiling negotiations are expected to reach an agreement and the Federal Reserve may raise interest rates in June, all of which are negative factors for gold.

– If you want to invest in the foreign exchange market, consider buying GBPUSD or EURUSD as the UK and Europe are ahead of the US in vaccination progress and both currencies have fallen to their lows. You may also consider selling USDJPY or USDKRW as these two Asian currencies are trending stronger.

– If you are looking to invest in the cryptocurrency market, consider buying Bitcoin as the cryptocurrency remains the most influential and liquid digital currency and the price has retreated almost 50% from its all-time highs.

The above advice is for reference only, please make sound trading decisions based on your risk appetite and capital situation.

The original article is as follows:

On Monday, U.S. markets will be closed for the holiday.

The U.S. debt ceiling negotiations remain the biggest focus of the market, with talks between President Joe Biden and House Speaker Kevin McCarthy making significant progress this week to help ease investor tensions over a debt default, but doubts remain as to when the two sides will reach an agreement. Reuters quoted a U.S. official as saying that the deal being negotiated by Biden and McCarthy contains a two-year increase in the debt ceiling while limiting spending on most programs, but another administration official also warned that the two sides have not yet resolved the main issues.

In addition, this week the market will also pay close attention to the U.S. Friday will be released non-farm payroll data, the data is considered an important reference for U.S. employment, while the strength of employment is an important reference when the Fed June interest rate discussions. The market currently expects the Fed to raise interest rates in June 0.25% chance of rising to 64%, and employment data will affect the possibility.

European and U.S. stock markets

U.S. stocks moved higher on Friday, and by the close of trading, the Dow Jones Industrial Average rose 328.69 points, or 1%, to close at 33,093.34 points; the U.S. Standard & Poor’s 500 Index rose 54.17 points, or 1.3%, to close at 4,205.45 points; the Nasdaq Composite Index rose 277.59 points, or 2.19%, to close at 12,975.69 points. On a weekly basis, the Nasdaq rose 2.5%, up for the fifth consecutive week, while the S&P closed 0.3% in the red, while the Dow lagged on a weekly basis, down 1%.

On the individual stock front, shares of Ford Motor Company (NYSE:F) and Tesla (NASDAQ:TSLA) rose 6.24% and 4.72%, respectively, after the companies announced electric vehicle charging partnerships. Ford announced that Ford electric vehicle owners will have access to more than 12,000 Tesla Superchargers in North America starting in early 2024.

GAP (NYSE: GPS) surged 12.40 percent to $8.34 per share after another net loss in the first quarter and a decline in sales of its four brands, but the retailer insisted the situation has improved and margins have improved significantly.

Of note, shares of IC design primary Marvell Technology Group Ltd (NASDAQ:MRVL) soared 32 percent to $65.51 per share Friday, after Marvell announced Thursday that revenue from AI-related products will at least double this year. The company beat Wall Street’s average estimates for both revenue and adjusted earnings per share in the last quarter that ended April 29. JPMorgan Chase raised its price target to $70.

In Europe, the pan-European Stoxx 600 index closed up 1.15% at 461 points; the German DAX 30 index closed at 15,983 points, up 1.2% or 190 points; the French CAC 40 index closed at 7,319 points, up 1.24% or 89 points; the FTSE 100 index closed at 7,627 points, climbing 0.74% or 56 points.

Asian stock markets

As for A-shares, the Shanghai Stock Exchange Index rose 0.35% to close at 3212.50 points, after falling to 3179.82 points in the morning market; the Shenzhen Stock Exchange Index rose 0.12% to close at 10909.65 points; the Growth Enterprise Market Index fell 0.66% to close at 2229.27 points.

The Hong Kong stock market was closed on Friday for the holiday.

For other Asian stocks, Nikkei 225 rose 0.37% to close at 30,916.31 points; South Korea’s KOSPI rose 0.16% to close at 2,558.81 points; Australia’s S&P/ASX200 rose 0.23% to close at 7,154.80 points; Vietnam’s VN30 index fell 0.13% to 1,060.81 points.

Commodity Markets

In crude oil, investors are weighing whether OPEC+ will cut production further when it meets in early June, and crude oil futures prices closed higher on Friday (26th), pushing last week’s weekly online gains. Among them, WTI crude futures were up 84 cents, or 1.2%, at $72.67 per barrel, after recent month WTI futures prices closed 1.4% higher last week. London Brent crude oil futures for the July contract rose 69 cents, or 0.9%, to $76.95 per barrel, closing 1.8% higher last week. Meanwhile, the most active August contract was up 1.1 percent at $76.98 on Friday.

OPEC+ is scheduled to hold a ministerial meeting in Vienna this Sunday, June 4. Reuters reports that Russian Deputy Prime Minister Alexander Novak told the media on Thursday that he does not expect any additional measures to be announced at the OPEC+ meeting on June 4.

In addition, natural gas futures prices fell 5.5 percent to close at $2.18 per million Btu, after falling 15.6 percent last week and having lost about half their price so far this year.

In the gold market, New York futures rose 60 cents or less than 0.1% to $1,944.30 an ounce, after a cumulative decline of 1.9% for the week. This was the third consecutive weekly black close for gold prices, as investors sold off gold following the release of PCE data. Meanwhile, the market is also assessing the progress of the debt ceiling negotiations.

Foreign exchange markets

In the currency markets, the dollar index edged down 0.05% to 104.20 on Friday, up nearly 1% on a weekly basis.

Note that the British pound rose more than 0.2% against the dollar to $1.2349, ending four consecutive sessions of decline, depreciating nearly 0.8% last week; the euro was flat against the dollar on Friday at $1.0727 after three straight days of decline, depreciating 0.7% on a weekly basis.

The dollar rose 0.4% against the yen to $140.60, continuing to hit a six-month high, up nearly 2% for the week.

Finally, bitcoin was up 4.59 percent at $28,334.0 at press time. Last week, the cryptocurrency’s price fell a cumulative 0.89%.


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