Overnight Market Review (2022.5.16) The relief brought by signs of inflation peaking last Friday offset market concerns that the Fed’s tightening policy could tip the economy into recession. The dollar slipped, U.S. stocks rebounded and oil prices jumped. This week focuses on U.S. retail sales, GDP in the euro area and Japan, among others.
Global gold market: Gold prices fell last week, falling for a fourth straight week, as a strong dollar and more aggressive U.S. interest rate action loomed, denting appetite for gold. Gold futures were down 0.9% at $1,808.20 an ounce.
U.S. stock index futures fluctuated slightly before the market on Monday, as the market awaits retail sales data and earnings reports from retail giants this week to understand how U.S. consumers are spending, especially if inflation remains high.
Meanwhile, the outlook for the Federal Reserve’s monetary policy and its possible blow to the economy also dampened markets. Data released before the market showed that the U.S. New York Fed manufacturing index unexpectedly recorded a negative value of -11.6 in May, the lowest since May 2020 and far below the market expectation of 17. However, lacklustre economic data could dampen the chances of aggressive rate hikes by the Fed.
Trading strategy deployment: it is recommended to do more at low levels
All transactions involve risks, the above analysis is for reference only. When placing an order, be sure to set the lot size and remember to set the stop loss.