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].

Dear Client,

To provide you with more diverse trading options, VT Markets will launch a new product on 15th July 2024.

The above data is for reference only, please refer to the MT4 and MT5 platforms for the updated data.

Friendly reminders:

1. Please refer to the MT4 and MT5 platforms for the specific swap rate.

If you’d like more information, please don’t hesitate to contact  [email protected].

CURRENCIES

 Market summary:

• The Australian Dollar was slightly lower on Monday but remains near its 2024 peak due to solid and enduring monetary policy support.
• Unlike most major central banks cutting rates, the Reserve Bank of Australia is likely to maintain or even increase rates due to high inflation.
• May’s inflation numbers showed a surprising rise in consumer prices, reaching a six-month high above 4%.
• Even if rates stay unchanged through year-end, Australian yields and the Dollar remain attractive.

 Economic data:

• Monday: Sparse but notable data with a decline in home loans and investment lending for homes in May.
• Tuesday: Westpac’s monthly consumer confidence snapshot; June’s data showed slight improvement in consumer sentiment.

 Upcoming Events:

• Focus shifts to the US for Federal Reserve Chair Jerome Powell’s Congressional testimony.

 Technical analysis:

• The Aussie has surpassed its previous range top in the last three sessions but remains unstable.
• Bulls pushed through key resistance at the first Fibonacci retracement of AUD/USD’s rise (December 28, 2023, peak to October 25, low).
• Near-term support is at 0.67419; if this fails, a drop below 0.67133 into the previous range is likely.
• Further retracement support at 0.65704 appears solid.
• Long-term uptrends since mid-April remain intact, with little expectation of significant declines while fundamentals are supportive.

STOCK MARKET

Influence of top stocks:

• A small group of high-performing stocks, including “Magnificent Seven” tech names like Alphabet (GOOG, GOOGL), Apple (AAPL), and Tesla (TSLA), heavily influence market activity.
• The top 10 stocks contributed 75% of the index’s year-to-date returns.
• Nvidia (NVDA) alone accounted for nearly one-third of the S&P 500’s gains by late June.

Focus on quality at a reasonable price:

• Kantrowitz recommends prioritizing companies that outperform peers in earnings growth but are not the most expensive.
• He advises sacrificing some growth for quality to find reasonably priced names.
• There are 50 S&P 500 names that have beaten the index this year, not solely reliant on AI or tech.

Diverse performance:

• Large-cap and small-cap stocks are viewed differently due to their varying performances.
• Despite the S&P 500 reaching all-time highs in Q2, the average stock’s value declined.
• Year to date, the S&P 500 is up nearly 17%.

Industry shift:

• Multiple strategists raised their S&P 500 targets earlier this year due to a strong rally.
• It’s becoming challenging to keep up with the market trends, prompting more firms to reconsider their focus on the index.

Click here to open account and start trading.

Dear Client,

To provide a favorable trading environment to our clients, VT Markets will modify the trading setting of all share CFDs on July 15, 2024:

1. All US Shares products leverage will be adjusted to 20:1.

2. MT5 All Shares products: New positions opened within 30 minutes before market closing and after market opening will start with leverage of 5:1. After the mentioned period, the leverage will be resumed to original leverage and will not be adjusted back to 5:1.

MT4 will not be affected.

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 CFD 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,

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].

CURRENCIES

Euro (EUR/USD) analysis:

• French bond yields starting to move higher.
• Euro edges lower as markets wait for specifics.

French election results and market impact:

• The recent French election resulted in a shock, leaving financial markets vulnerable.
• Contrary to expectations of a strong showing by the far-right National Rally (RN) party, the left-wing New Popular Front coalition made significant gains, securing the most seats in the National Assembly.
• President Emmanuel Macron’s centrist alliance, Ensemble, underperformed but still placed second, ahead of the RN.

Political instability and market reactions:

• Resulted in a hung parliament with no outright majority.
• Likely governance challenges as Macron’s party will need to form alliances or negotiate to pass legislation.
• Jean-Luc Melenchon, leader of the New Popular Front, demands the resignation of the French prime minister and for NFP to govern.

Market movements:

• French asset markets unchanged to marginally lower in early trade.
• CAC 40 attempting to push higher but gains may be limited pending further news on government composition.
• French borrowing costs elevated, potentially rising further due to proposed spending by Melenchon, including lowering the pension age to 62 and increasing the minimum wage.

Euro post-election:

• The Euro remains relatively calm post-election, holding last week’s gains.
• Benefitting from US dollar weakness, with potential to drift towards 1.0900 against the US dollar in a calm period ahead.

Trader sentiment and EUR/USD:

• Retail trader data shows 36.57% of traders are net-long, with a short to long ratio of 1.73 to 1.
• The number of traders net-long is significantly lower compared to yesterday and last week.
• Traders net-short positions have increased, indicating a contrarian bullish trading bias for EUR/USD prices.

STOCK MARKET

Key events and reports:

• Tuesday and Wednesday: Semiannual testimony from Federal Reserve Chair Jerome Powell before the Senate Banking Committee and the House Financial Services Committee.
• Thursday: Release of June’s Consumer Price Index (CPI).
• Friday: Second quarter earnings season begins with reports from JPMorgan (JPM), Wells Fargo (WFC), and Citi (C). Additional reports from PepsiCo (PEP) and Delta Air Lines (DAL) earlier in the week.

Market performance last week:

• S&P 500 (^GSPC): +2%, finished at record highs.
• Nasdaq Composite (^IXIC): +3%, finished at record highs.
• Dow Jones Industrial Average (^DJI): +0.5%, noted as a laggard.

 June jobs report:

• The US economy added more jobs than expected, but details show signs of a slowing labor market.
• Unemployment rate rose to 4.1%, highest since November 2021.
• April and May job gains were revised lower by 111,000.
• Economists predict this will lead the Federal Reserve to cut interest rates in September.

Economist insights:

• Nancy Vanden Houten (Oxford Economics): June jobs report shows labor market cooling, supports forecast for Fed rate cuts in September.
• Neil Dutta (Renaissance Macro): Report firmed up expectations for a September rate cut, suggesting Powell will set up for this in July.

Investor sentiment:

• As of Friday, 75% of investors expect a rate cut by the Fed’s September meeting, up from 64% the previous week (CME’s FedWatch Tool).

Inflation and CPI report:

• Inflation readings in May showed the slowest price increases of 2024.
• June CPI report expected to show a 3.1% annual rise, down from May’s 3.3%.
• Core CPI (excluding food and energy) expected to rise 3.4% year-over-year, unchanged from May.

Earnings season:

• Financials (XLF) will be a focus, with 40% of S&P 500 companies reporting.
• Sector expected to see 4.3% year-over-year earnings growth, placing seventh among S&P 500 sectors.
• Regional banks projected to report a 26% decline in earnings growth.

Outlook for Q2 earnings:

• S&P 500 earnings forecasted to grow 8.8% year-over-year, highest since Q1 2022.
• Caution among strategists about upside potential despite record market levels.
• Companies beating expectations saw minimal stock price impact last quarter.

Click here to open account and start trading.

Dear Client,

Shares product AVGO is about to conduct a share split after the market closes on July 12, 2024. Starting from the market opening on July 15, 2024, AVGO expects to provide investor trading in divided contracts.

After the share split, please be aware of the following:

1. The trading volume of AVGO open positions will become 10 times the original number of lots.

2. The “opening price” and “take profit/stop loss set price” of AVGO positions will become 1/10 of the original price.

3. The price of AVGO at the marketing opening of July 15 is expected to be about 1/10 of the closing price.

4. After the market closes on July 12, all AVGO pending orders in live accounts will be cancelled.

5. After the market closes on July 12, all AVGO orders in demo accounts will be cancelled, including open positions and pending orders.

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].

Dear Client,

Shares product AMWL is about to conduct a share merge after the market closes on July 10, 2024. Starting from the market opening on July 11, 2024, AMWL expects to provide investor trading in divided contracts.

After the share merger, please be aware of the following:

1. The trading volume of AMWL open positions will become 1/20 of the original lot size. The trading volume of orders with less than 2 lots will be automatically closed at the EOD price on July 10; the trading volume with more than 2 lots can continue to be held.

2. The “opening price” and “take-profit/stop-loss setting price” of AMWL’s positions will become 20 times the original price.

3. AMWL’s price at the market opening on July 11 is expected to be approximately 20 times the closing price.

4. After the market closes on July 10, all AMWL pending orders in real accounts will be cancelled.

5. After the market closes on July 10, all AMWL orders in the demo account will be cancelled, including open positions and pending orders.

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].