Archive for Stock Market News

Biotech with Phase 3 Rheumatoid Arthritis and Psoriasis Trials Raises Capital, Now ‘Funded Through Catalysts’

By The Life Science Report

Source: Streetwise Reports   07/08/2020

An update on Can-Fite BioPharma’s multiple drug treatment trials is provided in a Dawson James report.

In a July 6 research note, Dawson James analyst Jason Kolbert provided an update on Can-Fite BioPharma Ltd. (CANF:NYSE.MKT).

The Israel-based firm recently raised $3.4 million in capital, which Kolbert wrote is sufficient to get it through its upcoming catalysts. He expects additional raises in the future, however and added that “investors need to balance the raises against scientific progress.”

He reported on what is new with Can-Fite’s primary drug candidates, Namodenoson and Piclidenoson.

“Both hold great promise as alternative therapies with what appears to be a more favorable side effects profile,” commented Kolbert.

Additional Phase 2 data are available for Namodenoson in liver cancer, and they “shine,” Kolbert noted. Results showed that overall liver fat volume decreased with a high significance in patients who received Namodenoson versus those who received a placebo.

Also statistically significant was the percentage of fat volume decrease. Among the cohort that was treated with Namodenoson 12.5 milligrams (12.5 mg), the decline was 3.68%, and among the group that got 25 mg of Namodenoson, it was 4.33%. These compare to the 2.61% decrease among the placebo patients.

Next for Namodenoson is a Phase 3 pivotal trial, the design for which the U.S. Food and Drug Administration approved. Currently, the European Medicines Agency is reviewing the study protocol and registration plan.

Regarding Piclidenoson, enrollment now is about half complete for both of the Phase 3 pivotal trials, the ACROBAT study in moderate to severe rheumatoid arthritis and the COMFORT study in psoriasis.

Kolbert concluded, “Piclidenoson results in not one but two studies (ACROBAT and COMFORT) are coming, and there is even data in COVID. As a result, we would hold on, and let’s get to the data.”

Dawson James has a Buy rating and a $7 per share target price on Can-Fite BioPharma, which is now trading at about $1.83 per share.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures for Dawson James Securities, Can-Fite BioPharma Ltd., July 6, 2020

The Firm does not make a market in the securities of the subject Company (s). The Firm has NOT engaged in investment banking
relationships with CANF in the prior twelve months, as a manager or co-manager of a public offering and has NOT received compensation resulting from those relationships. The Firm may seek compensation for investment banking services in the future from the subject Company (s). The Firm has received other compensation from the subject Company (s) in the last 12 months for services unrelated to managing or co-managing of a public offering.

Neither the research analyst(s) whose name appears on this report nor any member of his (their) household is an officer, director or advisory board member of these companies. The Firm and/or its directors and employees may own securities of the company(s) in this report and may increase or decrease holdings in the future. As of June 30, 2020, the Firm as a whole did not beneficially own 1% or more of any class of common equity securities of the subject company(s) of this report. The Firm, its officers, directors, analysts or employees may affect transactions in and have long or short positions in the securities (or options or warrants related to those securities) of the company(s) subject to this report. The Firm may affect transactions as principal or agent in those securities.

Analysts receive no direct compensation in connection with the Firm’s investment banking business. All Firm employees, including the analyst(s) responsible for preparing this report, may be eligible to receive non-product or service specific monetary bonus compensation that is based upon various factors, including total revenues of the Firm and its affiliates as well as a portion of the proceeds from a broad pool of investment vehicles consisting of components of the compensation generated by investment banking activities, including but not limited to shares of stock and/or warrants, which may or may not include the securities referenced in this report.

Analyst Certification: The analyst(s) whose name appears on this research report certifies that 1) all of the views expressed in this report accurately reflect his (their) personal views about any and all of the subject securities or issuers discussed; and 2) no part of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst in this research report; and 3) all Dawson James employees, including the analyst(s) responsible for preparing this research report, may be eligible to receive non-product or service specific monetary bonus compensation that is based upon various factors, including total revenues of Dawson James and its affiliates as well as a portion of the proceeds from a broad pool of investment vehicles consisting of components of the compensation generated by investment banking activities, including but not limited to shares of stock and/or warrants, which may or may not include the securities referenced in this report.

( Companies Mentioned: CANF:NYSE.MKT,
)

Markets in retreat after mixed trading on Wall Street overnight

By IFCMarkets

Top daily news

Equity markets are in red currently after a mixed session Thursday. US markets ended mostly lower yesterday after Labor Department data showed that 1.3 million Americans filed for first-time unemployment benefits last week.

Forex news

Currency Pair Change
EUR USD -0.5%
GBP USD +1.2%
USD JPY -0.36%
The Dollar strengthening is intact today ahead of inflation report scheduled for 16:30 CET today. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, added 0.3% Thursday as US Labor Department data showed 1.3 million Americans filed for first-time unemployment benefits when 1.4 new applications were expected. Both GBP/USD and EUR/USD reversed their climbing yesterday despite Germany’s statistics office report euro-zone’s largest economy’s trade surplus rose more than expected in May. AUD/USD joined USD/JPY’s continued sliding yesterday with both pairs lower currently.

Stock Market news

Indices Change
Dow Jones Index -0.77%
GB 100 Index -0.92%
Nikkei Index -1.21%
Hang Seng Index -1.99%
Futures on three main US stock indexes are edging lower currently after ending mixed Thursday after 7-2 Supreme Court decision ruling that a New York prosecutor could have access to President Donald Trump’s tax returns. The three main US stock indexes recorded returns ranging from -1.4% to 0.5% as data showed 32.9 million Americans were receiving unemployment benefits in the third week of June. European stock indexes are pulling back today after ending higher Thursday. Asian indexes are all lower today led by Heng Seng as China’s regulators cracked down on margin financing and state funds said they would reduce equity holdings.

Commodity Market news

Commodities Change
Brent Crude Oil -1.1%
WTI Crude -1.18%
Brent is edging lower today. Oil prices fell yesterday after Energy Information Administration reported that US crude inventories rose by 5.7 million barrels for the week ended July 3. The US oil benchmark West Texas Intermediate (WTI) futures ended lower yesterday: August WTI fell 3.1% and is lower currently. August Brent crude closed 2.2% higher at $42.35 a barrel on Thursday.

Gold Market News

Metals Change
Gold -0.06%
Gold prices are extending losses today . August gold ended 0.9% lower at $1803.80 an ounce on Thursday.

Market Analysis provided by IFCMarkets

Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

Preclinical COVID-19 Vaccine Data ‘Encouraging’

By The Life Science Report

Source: Streetwise Reports   07/08/2020

Updates on Sorrento Therapeutics’ two coronavirus-related products are provided in an H.C. Wainwright & Co. report.

In a July 6 research note, H.C. Wainwright & Co. analyst Ram Selvaraju reported the status of Sorrento Therapeutics Inc.’s (SRNE:NASDAQ) vaccine and antibody test for COVID-19.

“We continue to believe that Sorrento may be positioning itself as a leader in addressing the pandemic, with multiple potential therapeutic approaches in its pipeline,” he commented.

As for its coronavirus vaccine T-VIVA-19, the California-based therapeutics developer published initial preclinical study results that Selvaraju described as “encouraging.” In the trial, mice were injected intramuscularly or intravenously once with Sorrento Therapeutics’ vaccine and three weeks later, received a follow-up booster shot.

The initial immunization created antibodies against the SARS-CoV-2 protein in all mice within the first week of administration, and the booster enhanced those antibodies. The antibodies that developed wholly prevented virus infection, as determined via cell cultures, in 80% of the subjects.

Regarding Sorrento Therapeutics’ COVID-19 antibody test COVI-TRACK, Selvaraju reported that it is currently being evaluated for emergency use authorization, which it is expected to be granted in the coming weeks. Subsequently, the biopharma will make it available for distribution to clinical testing sites around the world, leveraging its existing relationships, such as with Cardinal Health, in doing so. At the start, Sorrento expects to manufacture up to 5 million test kits per month.

Selvaraju presented five reasons why COVI-TRACK is a competitive testing solution. It produces results quickly, in about eight minutes, and detects immunoglobulin G and immunoglobulin M antibodies. The test’s specificity, the ability to not generate false positives, and its sensitivity, the ability to not generate false negatives, exceed the 95% and 90% standards, respectively, when many of the existing tests “are woefully inaccurate,” the analyst noted. Lastly, Sorrento has savvy and experience with antibodies, Selvaraju wrote.

The need for COVI-TRACK “is likely to be healthy” and “persist for the foreseeable future,” indicated Selvaraju. As such, in the U.S. alone, the vaccine could generate $50 million-plus a year for Sorrento Therapeutics.

Selvaraju pointed out that in other recent news, the company completely prepaid both of its outstanding term loans, one for $100 million and another for $20 million. Now debt free, the biopharma should be better positioned going forward for “operational flexibility and potential strategic combinations.”

H.C. Wainwright has a $24 per share 12-month price target on Buy-rated Sorrento Therapeutics; today, the stock is valued at about $7.31 per share.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from H.C. Wainwright & Co., Sorrento Therapeutics Inc., Company Update, July 6, 2020

Investment Banking Services include, but are not limited to, acting as a manager/co-manager in the underwriting or placement of securities, acting as financial advisor, and/or providing corporate finance or capital markets-related services to a company or one of its affiliates or subsidiaries within the past 12 months.

I, Raghuram Selvaraju, Ph.D., certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.

None of the research analysts or the research analyst’s household has a financial interest in the securities of Sorrento
Therapeutics, Inc. (including, without limitation, any option, right, warrant, future, long or short position).

As of May 31, 2020 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Sorrento
Therapeutics, Inc.

Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know at the time of publication of this research report.

The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.

The firm or its affiliates received compensation from Sorrento
Therapeutics, Inc. for non-investment banking services in the
previous 12 months.

The firm or its affiliates did receive compensation from Sorrento
Therapeutics, Inc. for investment banking services within twelve
months before, and will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.

 

H.C. Wainwright & Co., LLC managed or co-managed a public offering of securities for Sorrento Therapeutics, Inc. during the past 12 months.

The Firm does not make a market in Sorrento Therapeutics, Inc. as of the date of this research report.

( Companies Mentioned: SRNE:NASDAQ,
)

Retail Traders & Investors Squeezed to Buy High-Risk Assets Again

By TheTechnicalTraders 

– Yes, we certainly live in interesting times.  This, the last segment of our multi-part article on the current Q2 and Q3 2020 US and global economic expectations, as well as current data points, referencing very real ongoing concerns, we urge you to continue using common sense to help protect your assets and families from what we believe will be a very volatile end to 2020.  If you missed the first two segments of this research article, please take a moment to review them before continuing.

On May 24th, 2020, we published this research article related to our super-cycle research. It is critical that you understand what is really happening in the world as we move through these major 21 to 85+ year super-cycles and apply that knowledge to the data we have presented in the first two segments of this research post.  Within that article, we quoted Ray Dalio from a recent article published related to his cycle research.

“In brief, after the creation of a new set of rules establishes the new world order, there is typically a peaceful and prosperous period. As people get used to this they increasingly bet on the prosperity continuing, and they increasingly borrow money to do that, which eventually leads to a bubble.
As prosperity increases the wealth gap grows. Eventually, the debt bubble bursts, which leads to the printing of money and credit and increased internal conflict, which leads to some sort of wealth redistribution revolution that can be peaceful or violent. Typically at that time late in the cycle, the leading empire that won the last economic and geopolitical war is less powerful relative to rival powers that prospered during the prosperous period, and with the bad economic conditions and the disagreements between powers, there is typically some kind of war. Out of this debt, economic, domestic, and world-order breakdowns that take the forms of revolutions and wars come new winners and losers. Then the winners get together to create the new domestic and world orders.”

That rather chilling statement suggests one thing that we all need to be aware of at this time: what the current and future economic cycles will likely present and how the world will navigate through this process of a cycle transition.

Before you continue, be sure to opt-in to our free market trend signals 
before closing this page, so you don’t miss our next special report!

In our opinion, the massive cycle event that is taking place may not disrupt world order as Mr. Dalio suggests.  There is a very strong likelihood that credit/debt processes may become the “collateral damage” of this cycle transition, but not much else changes.  The world order and powerful nations across the globe are keenly aware that starting WWIII because of a credit/debt crisis is not in anyone’s interest.  The world has enough capability to address these concerns without blowing the planet to pieces in the process.

Our super-cycle research suggests we have entered a period that is very similar to 1919~1920 – a “roaring good time” most likely has already extended beyond reasonable levels.  Our research suggests a massive peak in cycle events near 2023~24 after an already substantial support cycle from 2007~08 to 2023~24.  This span of time, roughly 17 years, is very likely to be a blend of the Unraveling & Crisis phases of the super-cycle. We believe the broader Crisis phase will continue to transition throughout a span of time lasting well into 2031~2034.  This suggests we may have another 11 to 15+ years of a massive unwinding cycle throughout the globe.

SUPER-CYCLE RESEARCHER DATA FROM OUR RESEARCH TEAM

Our research team believes the COVID-19 virus event sent these super-cycles into Warp-Speed recently.  The US stock market was poised to rally early in 2020 and may have experienced a multi-year rally had it not been for the COVID-19 disruption that took place in Mid-February.  The destruction of the economy related to the COVID-19 shutdown is still playing out.  Recent news suggests 41% of businesses that closed on Yelp have shut down permanently.  Now, consider that this means for consumers and local governments related to earning and revenue capabilities?  Workers have been fired and have completely lost earnings capabilities.  Business owners now face credit/debt issues and possible bankruptcies.  Local governments have lost revenue from taxes, payroll, sales, and fees and permits.  This destructive cycle continues until the economy has shed the “excess” within all segments of core economic function.

MORE DATA & MORE PREDICTIONS

Within the first two segments of this article, we’ve highlighted numerous data points and charts to more clearly illustrate the current global market environment.  We have to consider the reality of what is happening on the ground throughout the world and, in particular, what is happening in the US and most major economies right now.  If 30 to 40%, or more, of local businesses, are closing permanently, this suggests that 30 to 50% of tax revenues for local governments will also vanish.  It also suggests that these displaced workers and business owners will need to find new sources of income/revenue over the next 12+ months.

As much as we would like to think a “V-shaped” recovery is highly likely, it’s not going to happen is 30 to 50% of the US economy is suffering at levels being reported currently.  Yes, you could have investors pile into the US stock market because they believe the US economy is the most likely to develop a strong recovery in the future, but that will likely happen after the excess has been processed out of the economy through a business/credit contraction phase.  The current stock market valuation levels seem to ignore the fact that consumer and business activity has likely collapsed by a minimum of 25 to 45% (or more) over the past 90+ days – and may not recover to levels anywhere near the early 2020 economic activity levels.

Still, if you listen to the news and watch the data related to the real estate market, you would think there has been no disruption in the US economy.  Supposedly, homes are still selling quickly and the market is very robust.  The Case-Shiller 20 city home price index is well above 220, the highest levels ever reached for this index.  This suggests home prices have risen to levels that are likely 15% to 30% higher than the peak levels in 2006-2007 – yet we’ve just experienced a massive economic disruption across the globe where 25% to 45% (or more) of our economic earning and income capability has vanished.  Read between the lines if you must – something doesn’t seem to be reporting valid data at the moment.

The Consumer Price Index has recently started falling.  The only times in history where the CPI level has initiated substantial downward trends are throughout major recessionary or contraction economic phases.  It is very likely that the decrease in the CPI level is reflecting a supply glut pricing effect as a result of the COVID-19 shutdown process.  When consumer activity drops dramatically while supply channels continue as normal, a supply glut happens.  When this happens, price levels must adjust and address the over-supply of goods and raw materials stacking up in warehouses, containers, and ships.

If the consumers earning and spending capabilities are disrupted long enough, the manufacturing and supply side of the equation can’t react fast enough to the immediate decline in demand.  Therefore, the supply glut continues for a period of time as manufacturers attempt to scale-down the production levels to address for proper demand levels.  Obviously, lower demand equates to lower sales volumes and lower-income levels for manufacturers and sales outlets.  This translates into layoffs at the factories, sales outlets, and all levels in between.  The cycle continues like this until an equilibrium is reached between supply and demand.

This translates into lower-earning expectations for much of the US and foreign markets compared to previous expectations.  While the S&P 500 stock price levels have recovered to nearly the early 2020 price levels, it seems rather obvious to us that Q2 earnings data will likely shock the markets with dramatically lower results and forward expectations – in some cases these numbers may be disastrous.

When Nike released their Q4 (May 2020) earnings and showed a nearly $800 loss because of the early COVID-19 shutdown, this should have presented a very real understanding of how all levels of retail, manufacturing, and consumer services would also likely show a dramatic economic contraction taking place.  Currently, we are watching for news of new US businesses entering the bankruptcy process.  This recent article suggests business bankruptcies are skyrocketing higher – yet are still below the 2008~09 levels.  Please keep in mind that we are only 90+ days into this COVID-19 virus event – so this data is still very early reporting.

Still, the numbers are very telling…

“US filings totaled 3,427 on June 24, according to data from Epiq seen by the Times. The reading also closes in on the financial-crisis reading of 3,491 companies entering bankruptcy in the first half of 2008. “

If you are reading the same data I read from that statement, the difference between the 2008 levels and current levels is only 64 additional bankruptcies in the US – less than a 2% difference in total bankruptcies.

The reality of the current market conditions is that we are only 90+ days into this processing of all this new data and attempting to understand what is likely to become a new operating norm for global economies.  In 2008-09, the unwinding process took place over a full 12 to 16-month process.  The recovery process too much longer – more than 5+ years.  Currently, the unwinding process of the COVID-19 collapse took less than 30 days and the recovery process took a little over 90 days.

If our research team is correct, the speed at which the current recovery took place is nothing more than a reactionary recovery to a problem that was sudden and full of uncertainty.  The Q2 data will likely solidify the uncertainty and unknowns into very real economic values (losses) and may shock the US stock market into a downward price reversion phase.

We believe one of the best hedging tools any skilled technical trader can use right now is Gold and Silver (Precious Metals).  We continue to urge our friends and followers to maintain a portion of our portfolio in precious metals as a hedge against risk and unknowns throughout most of 2020 and beyond.  If the Q2 data does what we believe it will do, shock the markets, then a moderately violent and volatile downside price move is pending.  Simply put, you can’t destroy 25 to 45% of an active economy and displace millions of workers while sustaining high price valuations – unless you have a bubble-like euphoric investor mentality.  That, ladies and gentlemen, is exactly what we believe is happening right now.

The super-cycle event that took place between 1920 and 1929 was nothing more than a euphoric bubble-like event where investors and traders had “no fear”.  Everyone was leveraging everything they could to try to jump into the markets because they believed nothing could stop the rally.  Keeping this in mind, you may want to read this recent research post about parabolic bubbles we published on June 23, 2020.

When bubbles burst, most commonly done when investors suddenly come to their senses in terms of real valuation expectations, the downside price moves can be extremely distressing.  We urge you to properly understand that may happen with Q2 earnings data and new announcements.  We also urge you to understand the COVID-19 virus event may have moved the super-cycles into some type of “warp-speed”.  If our research is correct, we could be speeding towards a massive unwinding/crisis cycle phase very similar to 1929~1945.

Please read all the previous segments of this article and please properly position your portfolio to protect your assets.  There will be lots of other trades in the future for all of us.  These bigger price moves are not suddenly going to end because of Q2 or Q3 data.  Be patient and stay protected.  Q2 data is almost here and we are about to see some realization of the COVID-19 economic destruction process.

Get our Active ETF Swing Trade Signals or if you have any type of retirement account and are looking for signals when to own equities, bonds, or cash, be sure to become a member of my Passive Long-Term ETF Investing Signals which we are about to issue a new signal for subscribers.

Chris Vermeulen
Chief Market Strategies
Founder of Technical Traders Ltd.

NOTICE: Our free research does not constitute a trade recommendation or solicitation for our readers to take any action regarding this research.  It is provided for educational purposes only.  Our research team produces these research articles to share information with our followers/readers in an effort to try to keep you well informed.

 

Global rally lifts all markets

By IFCMarkets

Top daily news

Equity markets are trading in risk on mode currently ahead of US data expected to show over million Americans lost jobs last week while the declining trend for new unemployment benefits applications persisted. Stock markets traded higher on Wednesday despite Federal Reserve officials recent doubts about the durability of the rebound.

Forex news

Currency Pair Change
EUR USD +0.06%
GBP USD +1.57%
USD JPY -0.07%
The Dollar weakening is intact today ahead of US Labor Department report expected to show 1.375 million Americans likely sought unemployment benefits over the last week. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, lost 0.5% Wednesday as Federal Reserve reported consumer credit dropped 5.3% on an annual basis in May, after plunging 20% in April. EUR/USD joined GBP/USD’s continued climbing yesterday with both pairs higher currently. USD/JPY reversed its rising yesterday while AUD/USD reversed its sliding with the dynamics intact for both pairs currently.

Stock Market news

Indices Change
Dow Jones Index +0.24%
GB 100 Index -0.29%
Nikkei Index +0.4%
Futures on three main US stock indexes are mixed currently after a bullish session on Wednesday. Stock indexes in US ended higher: the three main US stock indexes recorded gains ranging from 0.6% to 1.4% led by technology shares. European stock indexes are mixed currently after a pullback Wednesday led by banks and energy shares. Asian indexes are higher today led by Shanghai Composite as the decline of China’s factory gate prices slowed in June.

Commodity Market news

Commodities Change
Brent Crude Oil +0.31%
WTI Crude -0.4%
Brent is edging lower today. Prices advanced Wednesday despite the US Energy Information Administration report that US crude oil inventories rose 5.7 million barrels last week, after a fall of 7.2 million barrels the week before. The US oil benchmark West Texas Intermediate (WTI) futures gained: August WTI added 0.7% but is down currently. August Brent crude closed 0.5% higher at $43.29 a barrel on Wednesday.

Gold Market News

Metals Change
Gold +0.27%
Gold prices are extending gains today. August gold rose 0.6% to $1820.60 an ounce on Wednesday.

Market Analysis provided by IFCMarkets

Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

Record US Covid-19 cases can’t halt the equity rally

By Hussein Sayed, Chief Market Strategist (Gulf & MENA), ForexTime

Equity markets have pushed higher in Asia following an impressive last hour rally on Wall Street yesterday. The record daily increase in US COVID-19 infections and the sharp rise in deaths has proved no barrier to the bulls. Rises in Apple and Amazon stocks sent the Nasdaq Composite to a new record high of 10,492, while the S&P 500 and Dow Jones Industrial Average advanced 0.78% and 0.68% respectively.

The current environment has led to the closure of the $2.8 billion Lansdowne Partners’ flagship equity long/short hedge fund. The lack of short winning strategies may even force more hedge funds to follow Lansdowne’s footsteps. The stimulus-driven market has made life for long/short strategies extremely difficult as relying on traditional valuation metrics to find short opportunities have failed throughout the latest bull market, and even throughout much of the previous 12 years since the Great Financial Crisis.

Fundamentals and valuations appear to be of limited influence on investor’s decision making. The fear of missing out, or “FOMO”, monetary and fiscal policy actions, low yields, lower interest rates for longer, are some of the factors that have led to this structural change in markets. If the Fed can keep zombie companies alive by keeping the lending taps open, why wouldn’t investors profit from these actions? However, the Fed cannot keep running these measures forever, and for many corporates relying on debt to stay afloat, sooner or later they will fail if they can’t return to profitability.

As always there is the good and the bad news. Depending on where investors put more weight is what drives asset prices and that is what leads to extreme highs and lows. Looking at where US stocks stand at the moment, it seems lots of the good news is already priced in. So even if bulls decide to keep pushing higher, the upside is likely to be limited from current levels unless we learn that an effective vaccine will hit the markets before year end and will be available for most of the population. If investors truly believed that the economy was returning to pre-pandemic levels soon, Gold wouldn’t be standing today at 9-year high, so it’s evident that investors who are participating in this risk-on rally are also hedging their positions by adding safe havens for their safety net.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


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All eyes on US jobless claims

By Han Tan, Market Analyst, ForexTime

The US jobless claims data release is set to hog the limelight later today, as investors assess whether the recovery in the jobs market has sufficient momentum to trigger further gains in risk assets.

Markets are currently forecasting a print of 1.375 million for the initial jobless claims, while the continuing claims are expected to come in at 18.75 million. Although the initial jobless claims is now far below the 6.8 million peak registered in March, it remains stubbornly high compared to the pre-pandemic average of around 200,000. As for continuing claims, the idea of having over 18 million Americans who are still claiming unemployment benefits, weeks after the US economy began reopening, is denting expectations of a V-shaped recovery.

In short, these high-frequency data points are set to show that the drop in US unemployment is plateauing.

A positive surprise in either data sets could give US stocks another reason to break to the upside of its sideways trend. With a golden cross already forming on the daily chart for S&P 500 minis, it is poised to clear the early-June high of 3234.4; it’s just awaiting its next catalyst.

 

The Dow Jones index is also in clear need of renewed impetus, as it struggles to break above its 200-day simple moving average. Risk assets are marking time as they await greater clarity in the US economic outlook, as optimism fuelled by unprecedented stimulus measures is dampened by the prospects of a slower pace in the US economic recovery, considering the soaring number of daily cases in the US.

These weekly jobless figures will frame expectations for the July US non-farm payrolls, which is due to be released on the first Friday of August. With two months of positive shockers already under its belt, the upward momentum may all but evaporate over the coming months, if the US does not get a stranglehold on the coronavirus’s spread. Should the still-fragile recovery in the world’s largest economy be shattered, that may prompt the unwinding of the stunning gains seen in US stocks since March.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


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ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Post-Soviet financial markets – what instruments are traded the most?

By ForexNewsNow

Financial markets in the post-Soviet space improved drastically. With the development of technology and the Internet, a lot of people started trading various instruments from stocks to crypto. Actually the former is considered to be the most popular instrument in most of those countries, but gold and crypto are also rampant. In this article, we will talk about them.

Crypto

Estonia, as well as Russia, are at the forefront of crypto innovations in the post-Soviet space. Also, Belarus became the first country in the space to launch a cryptocurrency exchange.

The exchange accepts Bitcoin and Ethereum, as well as fiat money and a lot of people started trading.

Tokenized assets for raw materials, stocks, indices linked to the base market value of traditional financial assets are also traded on the exchange. It is possible to make money using Visa and Mastercard bank cards issued by any banks, including foreign ones.

Crypto is a very popular instrument in Russia and Estonia as well. As trading is evolving gradually, people use Bitcoin and Ethereum for the most part to earn some money. Other countries are still emerging, however, crypto has not gained a foothold there yet.

Stocks

Stocks have become a very popular option among post-Soviet citizens. The trend is very visible in Russia and Ukraine, but interestingly Georgia has turned a country in recent years, where investors and people turn to stock trading. When an ordinary citizen wants to get information on how to buy stocks in Georgia the material is available on various websites on national banks. Because of this, many found the material useful, thus it became a driver to start trading stocks, which in general was not characteristic until 2010.

The choice in favor of trading stocks on the stock exchange in post-Soviet countries is due to several reasons. In part, they are psychological, as they provide the investor with tangible guarantees of return on investment. But there are objective factors. For example, all securities have liquidity due to material wealth: real estate of the enterprise, its raw materials and inventories.

The following is also attractive: The stock price does not depend directly on the value of currencies, raw materials (trading due to the lack of correlation is less dependent on interventions on currency pairs). Also, a crisis in a country or in a global market may not affect individual companies. Furthermore, investments in the assets of large companies are easier to predict than changes in the cryptocurrency market, precious metals.

Gold

And we have come to the final instrument, which is gold. Residents from post-Soviet countries pay particular attention to gold trading in financial markets. However, it could be regarded as the most complicated form of trading.

Gold trading on Forex and in the post-Soviet space is highly complex because accurate information on this market is practically not publicly available – no one can say how much gold is on the gold market, where it is located, how much is offered for sale, etc. In trading this instrument, traders rely on a number of indirect factors that accurately affect the market for this asset.

First, gold is considered a safe asset and this determines the demand for it. In times of crisis or in times of uncertainty in markets, demand for gold is growing – it is considered a safe haven for cash, which will at least preserve, and at a maximum, increase capital after the situation stabilizes.

Citizens from the post-Soviet know a very simple concept. The traditional rule that is followed in the gold trade is that, in unfavourable periods for the economy, the demand for gold grows, and in an atmosphere of dynamic growth, interest in gold decreases, since there are more opportunities to invest profitably.

Another rule of thumb is that gold can protect against inflation, which is why precious metals are also in high demand in the period of high values. This rule implies the importance of monitoring the policies of central banks – the super-soft monetary policy raises inflationary expectations in the market, which means it can serve as an indicator for timely investments in gold.

Finally, the dynamics of the US dollar is in itself considered an indicator of demand for gold – the dollar exchange rate and the price of this metal, as a rule, are inversely related, largely due to the fact that the lion’s share of world gold trading occurs for dollars on US exchanges and their allies.

By ForexNewsNow

 

Stock Market: “Relevant Waves Vs. Irrelevant News”

By Elliott Wave International

Let’s (again) delve into the connection between the stock market and news

The stock market is a fractal — i.e., a self-repeating form at all degrees of trend. Meaning, without the time or price labels, you can’t tell if you’re looking at a 2-minute chart or at a monthly one.

What’s more, stock market trends unfold in repetitive and recognizable price patterns.

What’s more, these patterns — Elliott wave pattens — emerge regardless of the news.

Yes, there may be very brief reactions to news, but then the main trend continues. That’s because the larger stock market trends aren’t driven by the news, they are driven by market participants’ bias, bullish or bearish. What we call, market psychology.

That’s why you often see headlines with the word “despite” in them — like, “Stocks rally despite U.S. unemployment at the highest level since the Great Depression,” or “Stocks fall despite stronger-than-expected consumer confidence report.” That word, “despite,” tells you everything you need to know.

Review Part I and Figures 1 through 5 in Chapter 12 of Robert Prechter’s 2017 book, The Socionomic Theory of Finance, and you’ll see evidence that the market is not priced according to external conditions.

And, here’s what the book says about those brief reactions:

Evidence for even temporary emotional reactions in markets is surprisingly suspect. All market observers have seen futures prices gyrate more intensely for a few seconds or minutes before and/or after an announcement perceived as major news. However, ensuing market movement may be totally opposite to the tenor of such news, even when it is a total surprise.

This quote came to mind when, on June 29, this sobering news appeared on a major financial website (CNBC):

Nearly half the U.S. population is without a job, showing how far the labor recovery has to go

The employment-population ratio — the number of employed people as a percentage of the U.S. adult population — plunged to 52.8% in May, meaning 47.2% of Americans are jobless.

Interestingly, on that very day, the DJIA closed up 580 points.

Plus, as you know, the stock market has bounced back substantially since the March lows, despite a historic slew of negative news.

Indeed, the June Elliott Wave Theorist, a monthly publication which has offered subscribers analysis of financial markets and cultural trends since 1979, showed this chart and said:

The first reports of economic contraction came out in March and continued through May. … Stock prices not only rose for seven weeks but also jumped higher on nearly every report of a rise in unemployment claims. A particularly big up day occurred when statistics suggested an increase in employment, but analysts quickly recognized that the numbers were untrustworthy due to restrictions in data collection deriving from the pandemic. No matter; stocks went up the next day, too.

In fact, you can also see that the stock market rose more than it fell when Covid-19 dominated the headlines! It also rose on the day of the first protests — and continued to climb for two weeks, despite the vandalism, looting and clashes between protestors and police not seen in decades.

The real driver of the stock market’s trend is investor psychology, which Elliott waves reflect.

As the book, Elliott Wave Principle: Key to Market Behavior, notes:

The Wave Principle is governed by man’s social nature, and since he has such a nature, its expression generates forms. As the forms are repetitive, they have predictive value.

Sometimes the market appears to reflect outside conditions and events, but at other times it is entirely detached from what most people assume are causal conditions. The reason is that the market has a law of its own.

Learn about this “law” of the market.

You can do so by reading the online version of Elliott Wave Principle: Key to Market Behavior, which is available to you free when you join Club EWI. Membership is also free.

Club EWI is the world’s largest Elliott wave educational community and members get free access to a wealth of resources on investing and trading.

Click on this link to get started: Elliott Wave Principle: Key to Market Behavior — read it for free.

This article was syndicated by Elliott Wave International and was originally published under the headline Stock Market: “Relevant Waves Vs. Irrelevant News”. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

 

FR40 Analysis: Better than expected French data bullish for FR40

By IFCMarkets

Better than expected French data bullish for FR40

French economic data in the last couple of weeks were positive on balance. According to Markit, France’s Manufacturing PMI increased to 52.3 in June of 2020 from 40.6 in May, better than market expectations of 52.1. And Services PMI increased to 50.7 in June from 31.1 in May, when a reading of 50.3 was expected. Readings above 50 indicate activities expansion, below indicate contraction. So the contraction in private business sector halted and an expansion was achieved. Better data are bullish for FR40. At the same time deficits of both trade balance and current account widened in May when a narrowing was expected. Deterioration of France’s economic performance is a downside risk for stock market index.

Indicator VALUE Signal
RSI Neutral
MACD Sell
Donchian Channel Neutral
MA(50) Buy
Fractals Neutral
Parabolic SAR Buy

 

Summary of technical analysis

Order Buy
Buy stop Above 5120.47
Stop loss Below 4793.80

Market Analysis provided by IFCMarkets