Global Stock Markets “Bouncing” Off Of Hefty Losses

Global Stock Markets “Bouncing” Off Of Hefty Losses

Global Stock Markets “Bouncing” Off Of Hefty Losses


Wednesday, Global stock markets continued to recover after last week’s losses and the USD was down 0.5% Vs a basket of peer currencies.

Gold rose Wednesday on the USD’s retreat and investor appetite for safe assets remained strong because of longer-term financial uncertainty after Britain’s surprise vote to leave the European Union.

Spot Gold was up 1% at 1,324.90 oz, while US Gold settled up 0.7% at $1,326.90.

Spot Silver gained 3.9% to an 18-month high of 18.44 oz, a 1.5 yr high.

Platinum and Palladium each rallied more than 3%.

Financial markets will continue to monitor US economic data for clues on the timing of the next rise in US interest rates.

The uncertainty around Britain’s vote has taken center stage.

“Gold’s investment case has been strengthened by the UK’s vote to quit the EU as the fallout may spur the world’s central banks to step up easing, hurting currencies and favoring Bullion,” said Marc Faber, publisher of the Gloom, Boom & Doom Report.

The US Fed may even embark on a 4th round of quantitative easing, or QE-4, Mr. Faber said in a TV interview Wednesday, adding that he typically buys Bullion every month. While he also likes Gold shares, they need to correct first after recent gains, he said.

Gold has advanced 25% YTD, as the European Central Bank (ECB) and Bank of Japan (BOJ) embraced negative rates to kick start growth and the US Fed pauses after its 1st hike since Y 2006 last December. The US central bank undertook 3 rounds of quantitative easing starting in Y 2008 to overcome the impact of the global financial crisis.

Not every one is optimistic.

Veteran investor Jim Rogers said this week that he would rather seek safe haven in the USD than Gold, given that Bullion has rallied in Y 2016 before the UK referendum. Credit Suisse Group AG has said it is Neutral Gold over the next 3 to 6 months.

Wednesday, US major stock market indexes finished at: DJIA +284.96 at 17694.68, NAS Comp +87.38 at 4779.25, S&P 500 +34.68 at 2070.77

Volume: Trade was heavy with over 1-B/shares exchanged in the NYSE

  • NAS Comp -4.6% YTD
  • Russell 2000 -0.4% YTD
  • S&P 500 +1.3% YTD
  • DJIA +1.6% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Neutral (0.06) Neutral (-0.06) Neutral (-0.08) Bullish (0.33)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Neutral (-0.09) Neutral (0.03) Bearish (-0.31) Neutral (0.01)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Neutral (-0.14) Neutral (-0.09) Neutral (-0.15) Neutral (-0.19)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Neutral (-0.16) Neutral (-0.09) Neutral (-0.19) Neutral (-0.21)
HeffX-LTN Analysis for GLD: Overall Short Intermediate Long
Neutral (0.19) Neutral (0.17) Bullish (0.40) Neutral (0.01)
HeffX-LTN Analysis  for SLV: Overall Short Intermediate Long
Bullish (0.31) Bullish (0.44) Bullish (0.46) Neutral (0.03)

Stay tuned…




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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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