Overnight Market Review (2022.6.17) On Thursday, the Bank of England and the Swiss National Bank announced interest rate hikes, fears of a recession dampened risk appetite, European and American stock markets fell sharply, and the dollar fell and gold rose. Focus on the Bank of Japan interest rate decision and Fed Chairman Powell speech.
Global Gold Markets: Gold rose on Thursday as the U.S. dollar retreated sharply on the Federal Reserve’s aggressive policy outlook, driving safe-haven flows back to gold. Gold futures rose 1.7% to $1,849.90.
U.S. stock futures rallied slightly ahead of Friday’s session as markets awaited Powell’s speech later in the session. At a news conference last Wednesday, he had reassured the market that he would not raise interest rates by 75 basis points on a regular basis. However, this still does not change the fact that policy tightening and the economy may decline because of tightening.
On the other hand, it may not be all smooth sailing for the market, despite a pre-market rally in stock futures. The date on which stock index futures, stock index options, individual stock futures and individual stock options expire at the same time. In this case, market volatility will rise. However, reports suggested that the expiry of $3.5 trillion in options could lead to short covering, which could temporarily ease pressure on the stock market.
Trading strategy deployment: it is recommended to go short at high 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.