|Asset||Current Value||Weekly Change|
|WTI Crude Oil||49.61||-8.12%|
5 Things to Watch Next Week
- How will the market react to the French election?
As the last polls before the first round of the presidential election show a move towards the moderate Macron and Marine Le Pen, stocks are expected to benefit in the beginning of the week, as the run-off between those two candidates is considered a “safe” pairing. That said, the uncertainty regarding the referendum is still high and a surprise surge by Melenchon could still stir sings up.
- Which altcoins will make their moves?
Several high-flying cryptocurrencies have been trading in relatively narrow ranges recently, and traders are eagerly waiting for the next major swings in Ethereum, Ripple, and Monero. This week’s star, Ethereum Classic, could also remain active as it’s holding on to its recent gains above the $3 level. Litecoin is already on the rise again, and volatility could jump in the other markets as well next week.
- Will the NASDAQ lead stock markets higher again?
The relative strength of US technology stocks could face a real test next week, as several of the behemoths of the segment will release their quarterly numbers. Microsoft, Google (Alphabet), Amazon, and Intel are all scheduled to report during the week representing more than $1.5 trillion in markets capitalization.
- Will economic numbers continue to disappoint?
US, British, and European economic releases have been consistently missing analysts estimates in recent week, with as the so-called economic surprise index hit a new 6-year low. While global markets showed strength, despite the weak numbers, a further deterioration could undermine the foundations of the global “growth-story”. Investors will pay special attention to the US GDP reading on Friday, the Durable Goods Report on Thursday, the CB Consumer Confidence Index on Tuesday, and first the German IFO Business Climate Index tomorrow.
- Will the North Korean situation escalate further?
There were some interesting developments this week that could be hints on a background deal between the China and the US to “fix” the North Korea problem. While a direct conflict might be way too costly for the superpowers, and the status quo is not that bad for China, it’s hard to say what the real intentions of Donald Trump are. We will pay special attention to the country in the coming weeks.
In Focus: Cryptocurrencies
Litecoin breaking out, 4-Hour Chart
Litecoin broke out of its recent consolidation pattern and surged to the $16 level, gaining more than 25% over the course of the weekend, and taking over Dash on the capitalization list. Some projections suggest that LTC could test the $20 level in the coming days. Other Cryptocurrencies are quiet this weekend, as Bitcoin and Ethereum Classic are holding on to their recent gains, while the other altcoins are little changed compared to their weekly averages.
The restructuring of the cryptocurrency market continued this week, as Ethereum Classic and Litecoin moved significantly higher regarding their market capitalization. Bitcoin experienced more active trading as it got closer to its all-time highs, and we expect fireworks to follow if BTC gets close to the $1300 zone. Ethereum’s position is safe for now as the second largest altcoin, but the third place of the podium seems to be up for grabs, with Litecoin being the most likely candidate.
|Currency||Weekly Volume||Monthly Volume||Market Cap|
Key Economic Releases of the Week
|Monday||GERMANY||IFO Business Climate||–||112.3|
|Monday||CANADA||Wholesale Sales (monthly)||–||3.30%|
|Monday||US||FOMC’s Kashkari speaks||–||–|
|Tuesday||UK||Public Sector Borrowing||2.6 billion||1.1 billion|
|Tuesday||US||CB Consumer Confidence||123.7||125.6|
|Tuesday||US||New Home Sales||590,000||592,000|
|Wednesday||CANADA||Core Retail Sales||-0.30%||1.70%|
|Wednesday||US||Crude Oil Inventories||–||-1 million|
|Thursday||JAPAN||Monetary Policy Satement||–||–|
|Thursday||EUROZONE||Base Interest Rate||0||0|
|Thursday||EUROZONE||Monetary Policy Satement||–||–|
|Thursday||US||Core Durable Goods||0.40%||0.50%|
|Thursday||US||Initial Jobless Claims (weekly)||241,000||244,000|
|Thursday||US||UOM Consumer Sentiment||97.1||96.9|
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.