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Dear Client,
To provide you with more diverse trading options, VT Markets will launch 6 new ETF products on 20th Feb 2024.
You can now trade the world’s popular products on Meta Trader 4 and 5 with the following specifications:
The above data is for reference only, please refer to the MT4 and MT5 platforms for the updated data.
If you’d like more information, please don’t hesitate to contact [email protected].
Dear Client,
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact [email protected].
The S&P 500 notched its 11th record high of the year, leading a positive trend across major U.S. stock indexes, despite mixed economic indicators and a volatile week. Closing at 5,029.73, the index was up by 0.58%, with the Nasdaq and Dow Jones also finishing in the green, buoyed by standout performances from companies like Tesla, Meta Platforms, and Wells Fargo. This rebound comes amidst a backdrop of fluctuating retail sales data, uneven earnings reports, and shifting currency markets, highlighting the stock market’s resilience even as it navigates through economic uncertainties and global financial dynamics. The week’s events underscore the complex interplay between consumer strength, corporate health, and international economic policies, painting a multifaceted picture of the current financial landscape.
The S&P 500 achieved a new record high, with all three major stock indexes, including the Nasdaq Composite and the Dow Jones Industrial Average, finishing in positive territory on Thursday. This recovery marks the S&P 500’s 11th record high of the year, as it managed to rebound from significant losses earlier in the week. The S&P 500 rose by 0.58% to close at 5,029.73, the Nasdaq Composite increased by 0.30% to 15,906.17, and the Dow Jones surged 0.91%, adding 348.85 points to close at 38,773.12. Notable performers included Tesla and Meta Platforms, with shares up 6% and 2% respectively, and Wells Fargo, which saw a 7% increase after a penalty from the Office of the Comptroller of the Currency was lifted.
Despite the positive close, the week presented mixed signals about the U.S. economy’s health and corporate America’s outlook. Retail sales in January fell by 0.8%, exceeding economists’ expectations of a 0.3% decline, fueling concerns about consumer strength amidst persistent inflation and high-interest rates. The earnings season has been inconsistent, with Tripadvisor’s shares jumping 9% after surpassing estimates. In comparison, Cisco faced a 2% decline after announcing layoffs and a dim sales forecast, and Deere’s stock fell 5% following a reduction in its full-year profit guidance. These developments came in a week marked by volatility, with the Dow experiencing its biggest one-day loss since March 2023 earlier in the week, yet it, along with the S&P 500, is set to end the week with slight gains, whereas the Nasdaq is projected to record a loss.
Data by Bloomberg
On Thursday, the overall market showed a positive trend with all sectors combined gaining +0.58%. The energy sector led the gains with a significant increase of +2.48%, closely followed by the real estate and materials sectors, which rose by +2.36% and +1.88%, respectively. Other sectors such as financials, utilities, consumer discretionary, and health care also saw increases, with financials up by +1.66% and health care by +0.70%. Industrials and consumer staples recorded modest gains. However, the communication services sector barely moved with a +0.08% increase, while the information technology sector was the only one to decline, dropping by -0.44%.
In the currency markets, the U.S. dollar experienced a significant downturn following unexpectedly weak January retail sales, dropping 0.8% against a forecasted 0.1% decrease. This initial reaction was somewhat mitigated as the data’s validity was questioned due to potential seasonal adjustments and adverse weather conditions. Despite this, the dollar managed to recover slightly from its lowest points. Contributing to the economic landscape were other indicators like initial jobless claims and various regional Fed data, suggesting a stronger-than-anticipated economic performance and higher inflation signals. This mixed economic feedback, along with a recovery in two-year Treasury yields from initial drops, painted a complex picture of the U.S. financial health, influencing currency valuations.
Internationally, the currency markets saw movements influenced by the U.S. data and other global economic indicators. The USD/JPY pair declined by 0.4%, yet it remained above its recent lows, indicating resilience amidst broader trends and speculation about Japan’s monetary policy challenges. Meanwhile, the EUR/USD pair rose by 0.3%, buoyed by European Central Bank (ECB) policymakers’ resistance to rate cuts and market anticipations around monetary policy adjustments. The British pound also saw a modest increase, benefiting from the U.S. retail sales report’s fallout and optimistic comments from Bank of England officials. These currency movements underscore the interconnectedness of global economic indicators and central bank policies, with investors closely monitoring various data points and policy statements for future direction.
EUR/USD nears key level amid speculation of Fed rate cut
A moderate decline in the US dollar, coupled with a decrease in US bond yields, has pushed the EUR/USD pair closer to the significant 1.0800 level. This movement is underpinned by market speculation of a potential Federal Reserve interest rate cut later this year, with a 40% chance in May and nearly 50% in June according to the CME Group’s FedWatch Tool. The speculation gains ground following higher-than-expected US inflation data, despite strong fundamentals and a tight labor market. On the European side, ECB President Christine Lagarde points to strong wage pressures and a commitment to achieving a 2% inflation target, amidst the European Commission’s downward revision of eurozone GDP growth for 2024 and expectations of decelerating inflation.
On Thursday, the EUR/USD moved higher and was able to reach near the upper band of the Bollinger Bands. Currently, the price is moving between the upper and middle band, suggesting a potential slightly upward movement to reach above the upper band. Notably, the Relative Strength Index (RSI) maintains its position at 55, signaling a neutral outlook for this currency pair.
Resistance: 1.0796, 1.0850
Support: 1.0713, 1.0662
XAU/USD struggle to hold the $2,000 mark amid mixed US economic indicators
Gold prices saw an increase on Thursday, reaching a peak of $2,008.30, driven by a weakening US Dollar and mixed economic data from the United States. Despite an initial surge, XAU/USD lost momentum throughout the trading session, struggling to maintain its position above the $2,000 threshold. The decline in retail sales by 0.8% for January, significantly below the expected 0.1%, and a slight improvement in initial jobless claims did not suffice to sustain early gains. However, improvements in manufacturing indices from New York and Philadelphia offered some positive economic signals. These developments led to fluctuating government bond yields and a partial recovery in the US Dollar, affecting gold prices amidst a complex economic backdrop.
On Thursday, XAU/USD moved higher and was able to reach above the middle band of the Bollinger Bands. Currently, the price is moving slightly above the middle band, suggesting a potential upward movement to reach the upper band. The Relative Strength Index (RSI) stands at 47, signaling a neutral outlook for this pair.
Resistance: $2,013, $2,023
Support: $1,998, $1,988
| Currency | Data | Time (GMT + 8) | Forecast |
|---|---|---|---|
| GBP | Retail Sales m/m | 15:00 | 1.5% |
| USD | Core PPI m/m | 21:30 | 0.1% |
| USD | PPI m/m | 21:30 | 0.1% |
| USD | Prelim UoM Consumer Sentiment | 23:00 | 80.0 |
Dear Client,
To provide a favorable trading environment to our clients, VT Markets will modify the trading setting of all Shares on February 19, 2024:
1. All Shares products leverage will be adjusted to 33:1.
2. 20 Pre-market US Shares on MT5: Leverage will be 5:1 during 14:00-16:30 and 22:45-23:00; and remain 33:1 during the rest of the trading time.
3. MT5 20 pre-market US Shares: TSLA, NVIDIA, NFLX, META, GOOG, AMAZON, AAPL, ALIBABA, MSFT, SHOP, BOEING, IBM, BAIDU, JPM, EXXON, INTEL, TSM, MCD, ORCL, DISNEY.
The above data is for reference only, please refer to the MT4 and MT5 software for specific data.
Friendly reminders:
1. All specifications for Shares stay the same except leverage during the mentioned period.
2. The margin requirement of the trade may be affected by this adjustment. Please make sure the funds in your account are sufficient to hold the position before this adjustment.
If you’d like more information, please don’t hesitate to contact [email protected].
Dear Client,
As part of our commitment to provide the most reliable service to our clients, there will be server maintenance this weekend.
Maintenance Hours :
17th of February 2024 (Saturday) 00:00-05:00 (GMT+2)
Please note that the following aspects might be affected during the maintenance:
1. The price quote and trading management will be temporarily disabled during the maintenance. You will not be able to open new positions, close open positions, or make any adjustments to the trades.
2. There might be a gap between the original price and the price after maintenance. The gaps between Pending Orders, Stop Loss and Take Profit will be filled at the market price once the maintenance is completed. If you don’t want to hold any open positions during the maintenance, it is suggested to close the position in advance.
3. Please refer to MT4/MT5 for the latest update on the completion and market opening time. Our services will be back online once the maintenance is completed.
4. Please note that during the maintenance period, the Client Portal and VT App may be unable to operate or unable to log in.
Thank you for your patience and understanding about this important initiative.
If you’d like more information, please don’t hesitate to contact [email protected]
Dear Client,
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact [email protected].
On Wednesday, the stock market witnessed a significant rebound, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average posting notable gains, driven in part by Lyft’s shares soaring 35% after reporting impressive fourth-quarter earnings. This rally followed a sharp downturn on Tuesday, spurred by concerns over inflation and the Federal Reserve’s interest rate policies. The market’s recovery was also reflected in the currency markets, where the dollar index dipped slightly, and currency pairs like EUR/USD saw modest gains. These movements came in the wake of comments from Federal Reserve officials and the latest CPI data, which led to a recalibration of expectations regarding the timing of potential rate cuts, now more likely in the second half of 2024, and influenced currency market dynamics significantly.
On Wednesday, the stock market saw a positive shift as major indexes rebounded from the significant losses experienced in the prior session. The S&P 500 increased by 0.96% to close at 5,000.62, the Nasdaq Composite rose by 1.3% to end at 15,859.15, and the Dow Jones Industrial Average grew by 0.4%, adding 151.52 points to finish at 38,424.27. This recovery was notably led by shares of Lyft, which surged by 35% following the ride-hailing company’s announcement of better-than-expected earnings for the fourth quarter. However, not all shares experienced gains, as Airbnb’s stock fell by 1.7% despite the company surpassing revenue expectations in its latest quarter.
The upward movement in the stock market came after a tumultuous Tuesday, where indexes such as the Dow, S&P 500, and Nasdaq Composite all slumped by more than 1%, marking the Dow’s worst day since March 2023. This sell-off was triggered by a hotter-than-anticipated inflation report, causing concern among traders that the Federal Reserve might delay cutting interest rates, a move previously anticipated by some to occur as early as March. The January CPI report has adjusted expectations, suggesting that any potential rate cuts by the Fed are more likely to happen in the second half of 2024, reflecting investors’ recalibrated outlooks on monetary policy amidst ongoing inflation concerns.
Data by Bloomberg
On Wednesday, the stock market experienced broad gains across most sectors, with the overall sectors index rising by 0.96%. Industrials led the charge with a significant increase of 1.67%, followed closely by Communication Services and Information Technology, which saw gains of 1.42% and 1.10%, respectively. Other sectors showing notable performance included Consumer Discretionary, Financials, and Health Care, with increases of 1.02%, 0.96%, and 0.81%, respectively. Real Estate, Materials, and Utilities also experienced positive movement, albeit at a slower pace. In contrast, the Energy and Consumer Staples sectors faced slight declines, dropping by 0.17% and 0.19%, respectively, indicating a mixed but predominantly positive day in the market.
The currency market experienced notable movements as the dollar index saw a decrease of 0.25%, influenced by a mix of factors including the consolidation of gains post-Tuesday’s Consumer Price Index (CPI) announcement and remarks from Chicago Fed President Austan Goolsbee, who suggested that the market’s reaction to the inflation data might have been excessive. Goolsbee’s comments, emphasizing that the recent CPI report does not alter the ongoing downtrend in inflation, were particularly impactful despite the core CPI’s 3-month annualized rate climbing to its highest since June. This dovish perspective from Goolsbee, alongside a drop in Treasury yields, led to a shift in market expectations, increasing the probability of a Federal Reserve rate cut in May and adjusting the outlook for 2024 cuts.
In currency pairs, the EUR/USD pair experienced a slight recovery, rising 0.2% after initially dropping below 1.0700, reacting to the surging U.S. Treasury yields and the recalibration of Federal Reserve rate cut expectations following the U.S. CPI data. This movement underscores the sensitivity of currency markets to interest rate expectations and inflation data, with the euro finding some support despite facing pressure from the anticipated earlier and more significant rate cuts by the European Central Bank compared to the Fed. Meanwhile, other major currencies like the British pound and the Japanese yen also showed varied reactions to the shifting economic indicators and central bank sentiments, highlighting the intricate dynamics influencing the currency markets amidst evolving economic landscapes.
EUR/USD Rebounds Amid USD Pullback and Fed Rate Cut Speculation
The EUR/USD pair witnessed a rebound as the US dollar experienced a modest retracement, driven by a pullback in US yields and profit-taking after recent gains. This movement was influenced by the anticipation of potential Federal Reserve monetary easing, possibly starting in June, in response to higher-than-expected US inflation figures. Market odds, according to the CME Group’s FedWatch Tool, suggest a growing probability of a Fed rate cut, with significant expectations for a reduction by the June meeting. Meanwhile, Federal Reserve and ECB officials highlighted the importance of cautious monetary policy adjustments amidst inflation concerns and geopolitical risks, indicating a complex environment for future rate decisions and their implications for currency movements.
On Wednesday, the EUR/USD moved higher and reached near the middle band of the Bollinger Bands. Currently, the price is moving just below the middle band, suggesting a potential slightly upward movement to reach above the middle band. Notably, the Relative Strength Index (RSI) maintains its position at 44, signaling a neutral outlook for this currency pair.
Resistance: 1.0744, 1.0796
Support: 1.0713, 1.0662
XAU/USD Recovery Amid Weakening USD and Optimistic Market Sentiments
Gold (XAU/USD) witnessed a dip to its lowest since last December at $1,984.03, only to rebound above the $1,900 threshold as the US Dollar weakened due to improved market sentiments and a rally on Wall Street. This shift came despite the global central banks’ firm stance against easing monetary policy, underscored by recent macroeconomic data indicating persistent inflation and tight labor markets, especially in the US. The unexpected rise in January’s inflation and strong Nonfarm Payrolls report has quashed immediate hopes for a Federal Reserve rate cut, as affirmed by Fed Chairman Jerome Powell, emphasizing a cautious yet optimistic outlook for the economy.
On Wednesday, XAU/USD moved flat and moved between the lower and middle bands of the Bollinger Bands. Currently, the price is moving above the lower band, suggesting a potential upward movement to reach the middle band. The Relative Strength Index (RSI) stands at 32, signaling a bearish outlook for this pair.
Resistance: $2,004, $2,023
Support: $1,988, $1,973
| Currency | Data | Time (GMT + 8) | Forecast |
|---|---|---|---|
| AUD | Employment Change | 08:30 | 0.5K (Actual) |
| AUD | Unemployment Rate | 08:30 | 4.1% (Actual) |
| GBP | GDP m/m | 15:00 | -0.2% |
| USD | Core Retail Sales m/m | 21:30 | 0.2% |
| USD | Empire State Manufacturing Index | 21:30 | -13.7 |
| USD | Retail Sales m/m | 21:30 | -0.2% |
| USD | Unemployment Claims | 21:30 | 219K |
Dear Client,
Affected by international holidays, the trading hours of some VT Markets products will be adjusted. Please check the following link for the remaining affected products:
Notification of Trading Adjustment in Holiday (Updated)
Note: The dash sign (-) indicates normal trading hours.
Friendly Reminder:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact [email protected].
Dear Client,
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact [email protected].
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