Impact Of Fed Rate Hike: June vs. September

Posted on by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex


The Fed dropped a bomb this past Wednesday when it released the latest FOMC minutes—a rate hike in June is possible. Weak US growth in the first quarter of the year and a slowdown now, coupled with nonfarm growth below 200K jobs might have suggested a more tamed statement. Markets responded to the surprise with a selloff in Treasuries and equities and a surge in the Dollar. And yet, despite the explicit mention of June, a rate hike in September seems more likely.

Just like the December 2015 rate hike, the Fed softens the blow by throwing out the possibility of a rate hike before the conditions are actually ripe for one. By the time the Fed actually lifts rates, the money market and the bond markets have adjusted and the shock is minimal. Continue reading "Impact Of Fed Rate Hike: June vs. September" →

Pro-Inflation? Anti-USD?

Posted on by The INO.com Team

By: Gary Tanashian of Biiwii.com

This is the opening segment from the May 15 edition of Notes From the Rabbit Hole, NFTRH 395.  I am releasing it for public viewing because it seems, the title’s question has come roaring to the forefront this week.  So the information (including the charts) is slightly dated, but becoming intensely relevant as of now.

We anticipated an ‘inflation trade’ or Anti-USD asset market bounce and this has been going on since mid-February. That was when silver wrestled leadership from the first mover, gold (which bottomed in December and turned up in January), and a whole host of other global asset markets began to rise persistently.

gold.spx.crb.silver.eem

So why again did the US stock market react negatively to good economic data on Friday? Continue reading "Pro-Inflation? Anti-USD?" →

Is The Stock Market Bull About To Become Hamburger?

Posted on by The INO.com Team

The Fed talked a tough game yesterday about possible interest rate increases. Interest rate sensitive sectors got stampeded today threatening a possible end to the 7-year charge. We look at some key market setups and option trades for the next move...

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Todd Gordon

Stocks Bounce Ahead Of Fed Minutes

Posted on by The INO.com Team

The stock market has headed higher after a sluggish start this morning. All three major averages have bounced back into green territory late this morning, with financial shares leading the way as investors are awaiting the release of the Fed minutes this afternoon and looking for any clues of a June interest rate hike.

MarketClub's Mid-day Market Report

Gold (FOREX:XAUUSDO) has pulled back and is trading lower coming under pressure from a U.S. Dollar (NYBOT:DX.M16.E) rally that has pushed it to a new 2 week high.

Key levels to watch this week: Continue reading "Stocks Bounce Ahead Of Fed Minutes" →

Two Companies Poised To Catch Up To Gold Peer Group

Posted on by admin

After a mad dash to the upside for gold and a similar dash to the downside for the U.S. dollar, investors are getting their bearings once again. April's disappointing jobs report refocused everyone on the potential economic slowdown and a still-dovish Fed. Brien Lundin of Gold Newsletter paints the big picture of how speculation over the Fed's actions to raise interest rates is affecting gold and gold equities, and he discusses two companies that have not appreciated as much as their peers but are likely to soon catch up.

Pershing Gold's Resource Base

Gold and gold stocks have maintained their gains since early May. And it's largely due to a significant downside miss in the nonfarm payrolls report for April: Against consensus expectations of 205,000 jobs created in the month, April's number came in at just 160,000 jobs. It wasn't quite as bad as the headline number may indicate: Average hourly earnings rose by 8 cents (0.3%), while the average work week added 0.1 hour.

"Gold and gold stocks have maintained their gains since early May."

Still, in an interview recently on CNBC, Atlanta Federal Reserve President Dennis Lockhart volunteered a 200,000-job benchmark as a level that would be conducive to further Fed rate hikes. The miss on jobs, combined with dismal, 0.5% GDP growth for the first quarter, should put a stake in the heart of hopes for a rate hike at the Fed's mid-June meeting. Continue reading "Two Companies Poised To Catch Up To Gold Peer Group" →