A really hot week of Central Bank interest rate decisions is coming to an end. The Fed, European Central Bank (ECB) and Bank of England (BoE) reported a 0.5% rate hike, which prompted mixed reactions from markets.
Let's take a look at the main financial points of the week:
🚨Elon Musk sold another $3.6 billion worth of Tesla ($TSLA) stocks
🚨Crude Oil ($OIL.WTI) is set for weekly gain
🚨GBP/USD licks BOE-inflicted wounds
Read on for more details! 👇
Markets Remain Volatile After 3 Major Rate Hikes This Week
We are now reaching the end of the busiest week of the year, and 90% of economic releases have already been released. Due to the number of news releases, the markets have experienced high volatility and plenty of price correction.
Currency pairs have specifically witnessed corrections and false breakouts due to the UK, US and Eurozone monetary policy changes. However, the stock market has also generally formed a clear trend.
Elon Musk sold another $3.6 billion worth of Tesla ($TSLA) stocks
Tesla CEO Elon Musk sold about 22 million more shares in his electric vehicle business, which were worth around $3.6 billion.
It isn't clear if the sales are related to the Twitter acquisition, but it is annoying investors who are upset by the perception that he is diverting the majority of his focus and resources to Twitter rather than Tesla.
Such actions could frustrate Elon's followers and Tesla shareholders.
Oil headed for the biggest weekly gain since early October on signs of tightening supply and the prospect for improved Chinese demand, despite downward pressure from interest-rate hikes.
There are signs that Russian flows to Asia are dipping because of the price cap. Also, China’s rapid dismantling of its Covid Zero policy has prompted optimism over the long-term outlook for demand, although the near-term outlook is uncertain as virus cases surge.
“Supply tightness took precedence over demand concerns,” said Ravindra Rao, head of commodities research at Kotak Securities Ltd. in Mumbai.
Despite the latest corrective pullback, $GBP/USD remains on the bear’s radar near 1.2200. One of the reasons for this market reaction was the BoE's decision to raise the key rate by 50 basis points following the Fed.
Other than the BoE-led slump, the US Dollar’s recovery, mainly due to the rush for risk safety, also underpinned the $GBP/USD pair’s fall the previous day. The market’s risk aversion could be linked to the major central banks’ readiness for keeping the higher rates for longer, as well as the fresh Sino-American tussles.
So, this concludes our weekly recap. Have a great weekend and see you next week! 🥳
IMPORTANT NOTICE: Any news, opinions, research, analyses, prices, or other information contained on this feed are provided as general market commentary and do not constitute investment advice or solicitation for a transaction in any financial instrument or unsolicited financial promotions. All material published on the website is intended for informational purposes only. The market commentary has not been prepared by legal requirements designed to promote the independence of investment research. Therefore, it is not subject to any prohibition on dealing ahead of dissemination. We do not make any warranties about this market commentary’s completeness, reliability, and accuracy. Past performance is not an indication of possible future performance. Any action you take upon the information on this feed is strictly at your own risk, and we will not be liable for any losses and damages in connection with this feed.
NAGA is a trademark of The NAGA Group AG, a German based FinTech company publicly listed on the Frankfurt Stock Exchange | WKN: A161NR | ISIN: DE000A161NR7.
The website is operated by NAGA Capital Ltd which is authorised and regulated by the Financial Services Authority Seychelles (FSA) under licence No. SD026. The registered address of Suite 3, Jivan’s Complex, Global Village, Mont Fleuri, Mahe, Seychelles. Tel: +248 4373121
Partner Companies: NAGA Markets Europe Ltd, authorised and regulated by the Cyprus Securities and Exchange Commission ("CySEC") under license No. 204/13 with registered address at Agias Zonis 11, Limassol, 3027, Cyprus and NAGA Global (CY) Ltd, with registered address at Nikokreontos 2, NICE DREAM, 6th floor, Flat/Office 601, 1066, Nicosia, Cyprus.
RISK WARNING: Derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how derivatives work and whether you can afford to take the high risk of losing your money. This is not investment advice. Trading with NAGA Trader by following and/or copying or replicating the trades of other traders involves high levels of risks, even when following and/or copying or replicating the Lead Traders. Such risks include the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Before making an investment decision, you should rely on your own assessment of the person making the trading decisions and the terms of all the legal documentation.
Restricted countries: NAGA Capital Ltd does not provide services for the residents of certain countries, such as Afghanistan, Albania, American Samoa, Anguilla, Australia, Austria, Barbados, Belarus, Belgium, Bermuda, British Indian Ocean Territory, Bulgaria, Burkina Faso, Canada, Cayman Islands, Central African Republic, Christmas Island, Cocos (Keeling) Islands, The Democratic Republic of the Congo, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Falkland Islands (Malvinas), Finland, France, Germany, Gibraltar, Greece, Guam, Haiti, Heard Island and McDonald Islands, Hungary, Iceland, Islamic Republic of Iran, Ireland, Isle of Man, Israel, Italy, Jamaica, Japan, Jersey, Democratic People's Republic of Korea, Latvia, Libyan Arab Jamahiriya, Liechtenstein, Lithuania, Luxembourg, Mali, Malta, Montserrat, Mozambique, Myanmar, Netherlands, New Zealand, Norfolk Island, Norway, Palestinian Territory, Occupied, Pitcairn, Poland, Portugal, Romania, Russian Federation, Saint Helena, Ascension and Tristan Da Cunha, San Marino, Senegal, Serbia, Slovakia, Slovenia, Somalia, South Georgia and the South Sandwich Islands, South Sudan, Spain, Sri Lanka, Sweden, Switzerland, Syrian Arab Republic, Trinidad and Tobago, Tunisia, Turks and Caicos Islands, Uganda, Ukraine, United Kingdom and any other countries where the citizens have British proof of identity (i.e. British Virgin Island, Gibraltar, Isle of Man etc.), United States, U.S. Minor Islands, Vanuatu, Virgin Islands, British, Virgin Islands, U.S., Yemen, and Zimbabwe.