General Motors (GM) has announced a partnership with Tesla (TSLA) to utilise Tesla’s North American charging network and technologies for its electric vehicles (EVs). Starting next year, GM vehicles will be able to access Tesla’s 12,000 chargers using an adapter and GM’s EV charging app. Additionally, GM will adopt Tesla’s charging port, known as NACS, in its EVs from 2025. This collaboration with Tesla marks a significant win for the electric vehicle leader and is expected to put pressure on other automakers and the U.S. government to adopt Tesla’s charging technology. The move helped the NASDAQ 100 to close higher for the seventh consecutive week despite having a mild Friday afternoon reversal. In response to U.S. financial regulators expressing support for freezing Binance’s assets, the American affiliate of the world’s largest cryptocurrency exchange announced that it would halt U.S. Dollar deposits. Furthermore, users will soon be unable to withdraw dollars from the exchange. This development reflects the regulatory challenges faced by cryptocurrency exchanges and highlights the impact on their operations and services in specific jurisdictions. According to a survey of economists conducted by Bloomberg, most experts anticipate that the Federal Reserve will refrain from increasing interest rates at its upcoming meeting on Wednesday. This would mark the first pause in rate hikes in 15 months. Despite facing a robust U.S. economy and ongoing inflationary pressures, economists expect the Federal Open Market Committee to maintain higher rates through December. However, there is a greater uncertainty among officials regarding their decision in July, indicating that even with a pause in June, further rate hikes are still possible. U.S. President Joe Biden and U.K. Prime Minister Rishi Sunak reached an agreement to initiate negotiations on a trade pact that aims to benefit British automakers by allowing them to qualify for electric car subsidies and facilitating the joint development of advanced weaponry such as hypersonic missiles. Dubbed the “Atlantic Declaration” by Sunak, the package includes discussions on a trade agreement concerning critical materials like cobalt, graphite, and nickel, which are vital for battery production in electric vehicles. This collaboration between the U.S. and U.K. demonstrates a shared commitment to fostering innovation and addressing key challenges in the automotive and defence sectors. European Markets closed lower. During a regular briefing, spokesperson Julie Kozack from the International Monetary Fund (IMF) called on the U.S. Federal Reserve and other central banks worldwide to maintain their current monetary policy and remain watchful in addressing inflationary pressures. Kozack acknowledged that although inflation momentum has eased in the United States, it remains a significant concern. She suggested that if inflation persists for longer than anticipated, the Federal Reserve may need to extend the duration of higher interest rates. In Asia, China’s inflation remained near zero in May, raising concerns about deflationary pressures and prompting the central bank to address worries about the economic outlook. The latest inflation data adds to the growing evidence of further cooling in China’s economy. This comes after reports of contracting manufacturing activity, shrinking exports for the first time in three months, and a fading rebound in the housing market. Governor Yi Gang of the People’s Bank of China has stated that China’s central bank will maintain targeted monetary policy and ensure stable credit growth. Despite increasing calls for more stimulus, Yi emphasised that the policy stance will remain largely unchanged. Speaking to businesses and banks in Shanghai, he expressed confidence in achieving the official growth target of around 5% for this year. Yi also expects inflation to gradually rebound in the second half of the year. Elsewhere, Oil fell 1.57% while Gold closed unchanged after another quiet session.
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For anyone following my Platinum Service it made 216 points on Friday and is now ahead by 1365 points for June. May closed with a gain of 3205 points. April saw a gain of 3354 points while March closed with a gain of 6168 points. The Platinum Service made 3164 points in February, 4687 points in January 2054 points in December, 4789 points in November and a record 9619 points last October. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1900 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
Equities
The S&P 500 closed 0.11% higher at a price of 4299.
The Dow Jones Industrial Average closed 43 points higher for a 0.13% gain at a price of 33,876.
The NASDAQ 100 closed 0.30% higher at a price of 14,528.
The Stoxx Europe 600 Index closed 0.15% lower.
Last Friday, the MSCI Asia Pacific closed 0.7% higher.
Last Friday, the Nikkei closed 1.97% higher at a price of 32,265.
Currencies
The Bloomberg Dollar Spot Index closed 0.2% higher.
The Euro closed 0.2% lower at $1.0748.
The British Pound closed 0.1% higher at 1.2570.
The Japanese Yen fell 0.3% closing at $139.42.
Bonds
Germany’s 10-year yield closed 3 basis points lower at 2.38%.
Britain’s 10-year yield closed 1 basis points higher at 4.24%.
U.S.10 Year Treasury closed 1 basis points higher at 3.74%.
Commodities
West Texas Intermediate crude closed 1.57% lower at $70.12 a barrel.
Gold closed 0.1% lower at $1961.10 an ounce.
The only Economic data to be released on either side of the Atlantic is the U.S. Monthly Budget Statement at 7.00 pm.
Cash S&P 500
My S&P plan worked well as both the NDX and S&P rallied before having small reversals late afternoon Friday. This move higher saw my 4317-sell level triggered before selling off to my 4297 T/P level and I am now flat. Given how over extended both the NDX and S&P are at this time with all the good news now priced in I am comfortable in selling rallies. There is still a danger that a benign CPI number will see the S&P spike to 4400 before a more meaningful sell-off takes place. Today, I will again be a seller from 4318/4338 with the same 4351 tight ‘’Closing Stop’’. I will continue to be a small buyer on any dip lower to 4240/4255 with the same 4229 ‘’Closing Stop’’.
EUR/USD
No Change. The Euro traded in a narrow range on Friday, and I am still flat. I will continue to be a buyer on any dip lower to 1.0650/1.0720 with the same 1.0595 ‘’Closing Stop’’. I still do not want to be short the Euro at this time.
June Dollar Index
No Change. I am still a seller from 103.70/104.50 with a lower 105.05 ‘’Closing Stop’’.
Cash DAX
I am still flat the DAX. The market traded heavy on Friday. I will now lower my sell level to 16000/16100 with a lower 16205 ‘’Closing Stop’’. I still do not want to be long the DAX at this time.
Cash FTSE
The FTSE traded heavy on Friday despite the NASDAQ closing higher for the seventh straight week. This move lower saw my 7555-buy level triggered. As I wanted to be flat over the weekend, I exited this position at my revised 7571 T/P level. Today, the FTSE has support from 7460/7510 where I will be a stronger buyer with a lower 7395 ‘’Closing Stop’’.
Dow Rolling Contract
No Change. The Dow traded in a narrow range on Friday, and I am still flat. I will continue to be a strong buyer on any dip lower to 33400/33650 with the same 33095 wider ‘’Closing Stop’’. I still do not want to be short the Dow at this time.
Cash NASDAQ 100
Friday’s initial rally saw the NDX hit my second sell level at 14630 for a now 14555 average short position. The NDX closed at 14528 meaning we are slightly ahead on this trade. I will now raise my T/P level on this position to 14460 while leaving my 14705 ‘’Closing Stop’’ unchanged. I still do not want to be long the NDX at this time.
September BUND
Unfortunately, the Bund missed my initial 133.40 buy level by 15 points before rallying 50 points into the close. I am reluctant to chase the Bund higher from here. Therefore, I will continue to be a buyer from 132.70/133.40 with the same wider 131.95 ‘’Closing Stop’’.
Gold Rolling Contract
Gold traded in a narrow range around the 1960 pivot point, and I am still flat. I will continue to be a buyer on any dip lower to 1928/1943 with the same 1915 ‘’Closing Stop’’.
Silver Rolling Contract
No Change. I am still an aggressive buyer on any dip lower 22.80/23.60 with the same no stop.
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