U.S. Equity Markets got slammed across the board yesterday, led by the 4% losses in both the NASDAQ and Russell Index, as a late sell-off saw the VIX rise 15%, closing at a price of 34.75. Federal Reserve Bank of Minneapolis President Neel Kashkari told CNBC that interest rates will be determined by how well supply chains improved moving forward. Kashkari also noted that interest rates will likely need to rise further – because if inflation remains at its current levels, it will hurt household spending and the domestic economy’s long-term potential. This suggests that while monetary policy was too tight before the pandemic, it’s now too loose to account for present conditions,  as the labour market remains constricted… and prices are continuing to trend higher. Still, Kashkari made it clear that he believes prices will eventually correct themselves as demand balances out. But if Chinese lockdowns continue – and the Russian-Ukraine conflict draws out – it could force the central bank to push interest rates to a level that would force economic contraction. Within the S&P 500, 10 of the 11 sectors finished lower. European Markets got hit hard yesterday. Russian President Vladimir Putin believes “doubling down” in Ukraine is the only way to claim victory, according to Central Intelligence Agency Director William Burns. Saudi Arabia lowered oil prices for buyers in Asia for the first time in four months due to demand concerns related to China’s COVID-19 lockdowns. European Central Bank Governing Council member Olli Rehn said it should raise interest rates starting in July to stop expectations for higher prices from becoming entrenched. Global growth concerns festered on fears that rising U.S. employment figures would push interest rates even higher. In Asia, The National Bureau of Statistics of China will release its April inflation figures later this week, with any signs of a deceleration boosting the outlook for government economic support. China’s April exports came in higher than expected, but growth slowed to its lowest level since June 2020 due to COVID-19 lockdowns and their impact on activity. Health officials in Shanghai bolstered quarantine measures to mitigate the spread of COVID-19, while authorities in Beijing ordered some residents to begin working from home. Bank of Japan Minutes from the central bank’s latest policy meeting showed members would not hesitate to boost monetary stimulus if economic growth slows. Elsewhere, Oil fell 6.46% on news that the U.S. released more oil than initially projected from its emergency reserves, while Gold declined 1.51% as the Dollar soared to a 20-year high.

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For anyone following my Platinum Service it was flat yesterday and is still ahead by 135 points for 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, having made 2466 points in November, 1028 points in October, 2866 points in September, 1543 points in August, and 996 points in July. The Platinum Service made 1366 points in June, 1439 points in May, 1244 points in April, after ending March with an impressive gain of 3769 points. 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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