U.S. Equity Markets finished the day mostly higher, led by the 1.24% rise in the NASDAQ 100, while the Dow ended Friday with a small 0.13% loss. According to the U.S. Federal Reserve, total U.S. home equity grew by nearly 20% in the First Quarter to a record high of $27.8 trillion. Meanwhile, the amount of available equity also rose to $11 trillion, with mortgage-data firm Black Knight saying 75% of available equity belongs to borrowers with mortgage rates below 4%. This suggests that the U.S. may see a rash of households increasing their credit risk in the wake of the Federal Open Market Committee’s largest rate hike since 1994. If this were to continue, it would not only make borrowing against equity increasingly expensive but also result in a major uptick in consumers tapping cheap credit – potentially resulting in overextensions like those seen in 2007. That does not mean the country will suffer a 2008-style housing-market crash, but these factors could contribute to an economic reset. Within the S&P 500, six of the 11 sectors finished higher. European Markets closed higher. European Central Bank (“ECB”) President Christine Lagarde said it is constructing a new monetary policy tool that will trigger bond purchases if the yields of weaker economies shoot up. Italian Prime Minister Mario Draghi said increased rate hikes by the ECB are inevitable given persistently high inflation. German Finance Minister Christian Lindner said the European Union has made progress on crisis rules for banks, providing stability for the region’s financial system. In Asia, The Bank of Japan said it would leave current easy-money policies unchanged while saying it would keep an eye on foreign exchange markets and the economic impact of a weak yen. Chinese state-run media outlet Economic Daily said the country’s economy and inflation are in a “different place” than other major economies, so it does not need to tighten monetary policy. U.S. Officials were said to be working on a phone conversation this summer between President Joe Biden and China’s President Xi Jinping to defuse tensions. South Korean President Yoon Suk Yeol said the economy faced a “very grave” situation as inflation rises in tandem with slowing global economic growth. Elsewhere, Oil fell 7% on increased recession risks while Gold fell 0.61% on further Dollar strength.

To mark my 2550th issue of TraderNoble Daiy Commentary I am offering a special 2-Year Rate of Euro 2750 for my Platinum Service which includes 1 to 4 updated emails throughout the trading day to demonstrate this value, a monthly subscription over the same period would cost 4440 euro in total This offer represents a 38% discount and is open to both new and existing members. If anyone is interested in this offer can you please email me on bryan@tradernoble.com for details

For anyone following my Platinum Service it made 170 points last Friday and is now ahead by 3056 points for June after making 3651 points in May, having made 762 points in April, following a gain of 5883 points in March. The Platinum Service made an impressive 5324 points in February, after ending January with a gain of 3878 points, more than making up for December’s 932 points loss. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1600 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 

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