U.S. Equity Markets finished yesterday basically flat after a volatile session that saw plenty of two-way price action, as the S&P gave up all of its gains with a late sell-off. Despite the volatility, the VIX closed lower by 4% at 28.95. U.S. Federal Reserve Governor Jerome Powell told members of the Senate Committee on Banking, Housing, and Urban Affairs that the central bank’s top priority is to slow the rapid growth of prices and maintain the economy. The Chair explained that because of this, its monetary policy must adapt to the rapid changes in activity and inflation, as many cost metrics have surprised to the upside – pushing the Fed to continue its rate hikes. If these actions work, he believes they could help orchestrate a “soft” economic landing and avoid a recession. But Powell also admitted the possibility of failure and that the U.S. economy could see a significant deceleration – likely driving the central bank to pursue another 0.75% rate hike in July to bring long-term interest rates to neutral territory. Within the S&P 500, seven of the 11 sectors finished lower. European Markets closed lower. U.K. Consumer Price Index (“CPI”) growth for May reached its highest level in 40 years, supporting additional interest-rate hikes from the Bank of England. The German government was said to prepare for the second stage of its emergency gas plan, which would include the use of coal-fired utilities to provide power. International Energy Agency Executive Director Fatih Birol said European governments should prepare for a complete lack of natural gas from Russia this winter. European Central Bank Governing Council member Olli Rehn said he expects it to raise rates by 0.25% in July and possibly by a larger amount in September. In Asia, China’s Finance Minister Liu Kun said the government will increase stimulus spending in addition to supporting the sale of local bonds for infrastructure projects. Chinese COVID-19 infections increased in the southern part of the country, threatening the technology hub of Shenzhen with extended lockdowns. Bank of Japan Minutes from the most recent policy meeting showed board members continued to see the need for ongoing easy-money policies to support economic growth. The Bank of Korea warned inflation could hit its highest level in 14 years, supporting the need for additional interest-rate hikes. Elsewhere, Oil fell 3.19% on reports that the Fed may raise interest rates by another significant margin, while Gold rose 0.3% on Dollar weakness.

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For anyone following my Platinum Service it made 295 points yesterday and is now ahead by 3471 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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