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Bitcoin Value Forecast 2022Why 2021 Was a Decent Year for Bitcoin More than 2021, Bitcoin partook in a lofty ascent in its fairly estimated worth. Toward the beginning of the year, a solitary coin was esteemed at $32,000, and by April that number had multiplied. Brokers were hopeful that more extensive acknowledgment of bitcoin by dealers and large banks would uphold the cost. In any case, the guarantee beat the truth — it was basically impossible to utilize bitcoin for quite a bit of anything with the exception of speculative, dangerous exchanging. A decrease in the securities exchange in late 2021, and a fall in profoundly esteemed development stocks, conveyed cryptographic forms of money down too. Bitcoin completed 2021 at about $47,300. As digital currency is still generally seen as a dangerous, speculative resource, this "risk-off" exchange brought bitcoin down to beneath $27,000 by early May. This addresses a deficiency of over a portion of the worth Bitcoin came to at its November 2021 pinnacle of $69,000, focusing on no indications of supported recuperation. Worries over the high power utilization related to bitcoin mining and the forbidding of digital currency exchanges by China likewise burdened bitcoin's worth. What Is the Fate of Bitcoin? Whales Make a plunge The future cost of bitcoin relies upon whether advanced monetary forms can act as valuable monetary resources. There was little help for this idea among monetary newsmakers in the early years, however, some once-suspicious significant financial backers have come around. Smorgasbord and Others Now Adherents Warren Buffett, whose Berkshire Hathaway organization has compensated financial backers with colossal returns over many years, when depicted digital money as "rodent poison squared," and he swore he could never contact it. Be that as it may, by buying NuBank, a computerized "neobank" engaged with the crypto space, Smorgasbord has given bitcoin a handed-down demonstration of positive support. Lloyd Blankfein, a previous executive of Goldman Sachs, has declared that he's "developing" on bitcoin and other digital forms of money. Jack Dorsey, an organizer behind Twitter, surrendered his occupation as President of that organization to run Block, an installment handling pioneer that is presently growing new computerized money applications. Reception by these and other corporate pioneers could uphold an inversion in bitcoin's fast drop and bring higher worth toward the finish of 2022.
BITSTAMP:BTCUSDLong
by IPatrice
Gold Remains a Compelling Investment on Price WeaknessGold is hard cash, and the precious yellow metal has a long history dating back thousands of years. Dollars, euros, yen, pounds, yuan, rubles, and all currencies floating around in the global financial system are babies compared to gold, the hard asset that holds value and symbolizes wealth. Gold holds the $1800 level after making a new high The bullish long-term trend remains firmly intact Russia backs the ruble with gold- Will China follow? Buying dips has been golden over the past two decades So many choices for gold investing and trading Countries, central banks, monetary authorities, and supranational institutions hold gold as a critical part of their foreign exchange reserves. They have added to reserves over the past decades, validating gold’s role in the global financial system. Aside from its monetary role, gold is a commodity and an ornamental metal that symbolizes love, wealth, and security. Gold has a myriad of industrial applications. Gold’s brand is unparalleled as it remains the ultimate form and symbol of money. Gold’s bull market began at the turn of this century, and it continues in May 2022. Gold’s appreciation is a commentary on fiat currency depreciation. Over the past two decades, the precious metal has respected technical levels and remains a compelling asset for investors and traders. Gold holds the $1800 level after making a new high On March 8, 2022, June COMEX gold futures rose to a new record peak of $2,082 per ounce. The price rallied on the back of Russia’s invasion of Ukraine but ran out of upside steam after making a marginal new high above the August 2020 peak. The chart of June gold futures shows the correction that took the futures to a low of $1,785 per ounce on May 16. Since then, the price bounced and was just above the $1850 level on May 27. While gold fell below the $1800 level, it only spent two days under the price that was the pivot point throughout most of 2021. The bullish long-term trend remains firmly intact Gold’s bullish trend began over twenty-two years ago, in 1999. The chart shows that the decline to $252.50 per ounce in August 1999 stands as gold’s bottom. Gold fell below the $300 level as the United Kingdom auctioned one-half of its gold reserves from 1999 to 2001. In early 2008, the precious metal rose above the 1980 record $875 high and probed above the $1,000 level for the first time. Gold has not ventured below $1,000 per ounce since October 2009. After reaching a record high of $1,911.60 in 2011, gold corrected and consolidated at above $1,000 through July 2020, when it made a higher high in August. The latest peak came in March 2022 as the long-term bull market trend remains firmly intact. Russia backs the ruble with gold- Will China follow? Central banks and governments hold gold as an integral part of foreign exchange holdings, validating gold’s role in the worldwide financial system. Over the past years, governments have been net buyers of gold, adding to reserves, with China and Russia the most high-profile buyers. Since the Chinese and Russians are significant gold producers and reserves are state secrets, it is challenging to quantify the increases in their reserves. According to the World Gold Council, in 2020, annual gold production was 3,478.1 tons. China produces 368.3 tons, and Russian output was 331.1 tons. Together, they produced over 20% of the world’s output, and the lion’s share likely went into reserves. China and Russia had also purchased gold on the international bullion market to add to their holdings. The geopolitical bifurcation that began on February 4, 2022, with a handshake between Chinese President Xi and Russian President Putin for “no-limits” cooperation, was a prelude to Russia’s invasion of Ukraine. It could also accelerate Chinese plans for reunification with Taiwan. The alliance pits China and Russia against the US and Europe, with other countries lining up on each side of the widening gulf between the nuclear powers. The US remains the world’s leading economy, but China is nipping on the US’s heels for the leadership role. The US dollar is the global reserve currency, but its role is slipping, and the geopolitical bifurcation threatens the dollar’s position. Sanctions led the Russians to declare that 5,000 roubles are exchangeable for one gram of gold, putting the Russian currency back on a gold standard. The chart of the currency relationship between the US dollar and the Russian rouble shows the plunge that took the rouble to $0.00757 in March after the invasion. The move to back the rouble with gold lifted the rouble to over the $0.0148 level on May 27. Meanwhile, the rouble moved to its highest level since 2018 against the US currency in May before correcting. If China follows the Russians and backs the yuan with gold, it will dramatically increase the precious metals’ role in the global financial system. Gold’s price would likely rise with the increasingly prominent role. Buying dips has been golden over the past two decades The long-term gold chart shows that buying gold on any price weakness has been the optimal approach to gold investing over the past two decades. Buying on rallies increased the odds of waiting out corrections and consolidation periods. The chart over the past three years shows that buying gold during periods of price weakness increases the odds of profitable trading and investing. So many choices for gold investing and trading The most direct route for owning gold is purchasing gold bars and coins. Gold is one of the few assets that provide a sense of security and wealth and is beautiful in its pure form. Gold futures are the next step on the golden pyramid as they provide a delivery mechanism. Unleveraged gold ETF products like GLD, IAU, and BAR hold the metal, creating a high correlation with the physical gold price. Gold mining shares provide leverage as the companies invest substantial capital in extracting gold from the earth’s crust. They extract lower grade ores as the prices rise, leading to greater profits in bull markets. Gold mining shares tend to outperform the metal’s price during rallies and underperform during corrections, providing leverage. However, gold mining shares do not suffer from the time decay that other leveraged tools often experience. Individual gold mining shares have idiosyncratic management risks and specific mining projects in producing countries worldwide. The GDX senior gold mining ETF and the GDXJ junior mining ETF products hold portfolios of senior and junior gold mining companies that diversify the idiosyncratic risks. The NUGT and JNUG products turbocharge the upside and downside returns of the GDX and GDXJ products, but they are only appropriate for short-term risk positions as NUGT and JNUG experience time decay. There are many other gold-related investment options, but the pure-play is the metal. Gold is a mainstay investment and trading asset that should be part of all portfolios. At the $1851.30 level on May 27, gold has corrected from the early March low but is on the way back up after probing below $1800 per ounce. Buying gold on dips continues to be the optimal trading and investing approach for the precious metal with a long history. Gold provides security and holds its value over time, and Russia’s return to a gold standard could boost its role in the global financial system over the coming years. -- Trading advice given in this communication, if any, is based on information taken from trades and statistical services and other sources that we believe are reliable. The author does not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects the author’s good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice the author provides will result in profitable trades. There is risk of loss in all futures and options trading. Any investment involves substantial risks, including, but not limited to, pricing volatility, inadequate liquidity, and the potential complete loss of principal. This article does not in any way constitute an offer or solicitation of an offer to buy or sell any investment, security, or commodity discussed herein, or any security in any jurisdiction in which such an offer would be unlawful under the securities laws of such jurisdiction.
COMEX:GC1!Long
by Andy_Hecht
1
Alibaba (BABA, BUY) Solid F4Q; Now is the Inflection Point We are upgrading our rating from HOLD to BUY and maintain our PT of $130 as F4Q results beat estimates and we see F1Q (June quarter) as the long-awaited inflection point for the company. CMR was flat y/y in F4Q (vs. -1% in Dec. quarter), despite a low-single-digit decline in GMV due to disruptions in supply chain and logistics in March. Cloud revenue grew 12% y/y, decelerating 8pts from F3Q due to macro weakness and COVID. Global AACs reached 1.31B, adding 30M sequentially, with 1B from China. Mgmt. indicates that June quarter will be more challenging as a result of COVID resurgence and lockdowns. In April, total revenue declined low-single-digit;China retail marketplace GMV declined low-teens due to supply chain and logistics disruptions, with May improving but still not fully recovered. Given the macro uncertainty, BABA is not providing revenue guidance for FY23. Repurchased 17.8M ADSs for $2.0B during the quarter. Despite the more challenging June quarter, we are upgrading BABA to BUY as we believe both revenue and profitability will bottom out and hit a long-awaited inflection point in the quarter. With government's stimulus policies kicking in and an easier comp, BABA's revenue growth and margin should start to improve in the 2H. In addition, BABA is trading at 11x CY23E earnings, significantly lower than the fiveyear-average of 22x. Although the stock's growth thesis has been muted since 2021, we see positive earnings revisions and valuation improvement in the coming quarters. NYSE:BABA
NYSE:BABA
by TigerBrokers
Chinese yuan rebounds on Shanghai reopening hopesThe Chinese yuan rose to one-week highs on Monday, fueled by expectations that Shanghai, the country’s financial hub, will soon emerge from a two-month lockdown that has crippled economic activities in the city and weighed on the country’s overall economic recovery. The CNY traded at 0.1504 against the greenback on Monday, recovering further from an over one-week low of 0.1481 on Wednesday when the yuan weakened against a basket of 24 currencies tracked by the China Foreign Exchange Trade System (CFETS). Still, the yuan has fallen below the 0.1570-mark against the USD since April as concerns over China’s economic recovery grew following Shanghai’s prolonged lockdown that has affected consumption, industrial production, lending, foreign trade, and other aspects of the economy. The RSI indicator is at least suggesting that this recovery in the yuan may not last. Slowing economy China’s zero COVID-19 policy has definitely taken a toll on the domestic economy. In April, China’s retail sales fell at the sharpest pace in over two years as the lockdowns in Shanghai hammered consumption and the supply of retail goods. There have been reports of food shortage in Shanghai, with state-run Xinhua News reporting that multiple botanists called on residents to stop digging and consuming wild vegetables. Industrial output, meanwhile, unexpectedly fell in April versus a year earlier, reversing the modest gain in March. The drop in China’s factory output last month was the steepest since the height of the COVID-19 pandemic in February 2020. It came as lockdowns forced the closure of vital factories including those operated by local and domestic carmakers. Shanghai is one of China’s major auto production hubs and the lockdowns weighed on carmakers’ revenues in April. All-out effort to stimulate economy As investment banks and economists downgraded their outlook on the Chinese economy this year due to the lockdown’s impact, Beijing has vowed to all-out efforts to stabilize industrial and supply chains and boost infrastructure construction. On Friday, Chinese Premier Li Keqiang acknowledged that the country’s latest economic challenges are worse than those seen in 2020. Li said the government is "at a critical juncture in determining the economic trend of the whole year.” He urged local governments to make every effort in bringing the economy back to its normal track. Shanghai reopening The Shanghai government is working to ease the city’s lockdown, issuing on Sunday an action plan that consists of 50 policies and measures to help stimulate the economy. The measures include relaxing the rules on resuming production starting June 1 and expanding the scope of subsidies for companies’ pandemic prevention and disinfection, state-run Xinhua News reported Sunday.
by BlackBull_Markets
SSE COMPOSITE close to a bullish reversalThe Shanghai Stock Exchange (SSE COMPOSITE) broke and closed today above the 1D MA50 (blue trend-line) for the first time since January 12. This alone is a first major step towards restoring the long-term bullish sentiment. There are two more barriers ahead, the Lower Highs trend-line from December 13 2021 and then the 1D MA200 (orange trend-line). In our opinion, the index can methodically hit each target if a 1D candle closes above the previous barrier. For example now that we got the 1D close above the 1D MA50, a buyer can target the Lower Highs trend-line. If we close above the trend-line, then target the 1D MA200. Complete long-term reversal to the bullish trend should come only above the 3500 Resistance. Notice that the RSI on the 1W time-frame has broken above its own MA trend-line and achieved Higher Highs, which is a strong step towards the direction described above. -------------------------------------------------------------------------------------------------------- Please like, subscribe and share your ideas and charts with the community! --------------------------------------------------------------------------------------------------------
SSE:000001Long
by TradingShot
2
Dining out soon?China, one of the largest consumer of soybean oil, has tapered its demand for the edible oil due to COVID-related control measures over the past few months. With new cases falling and lockdown for Shanghai expected to be lifted soon, we see positive demand drivers on the horizon for soybean oil. Restaurants are among the largest consumers of the oil. As consumers resume their normal consumption patterns and dining out becomes the norm again, it’s easy to see the impact on demand. Looking at the charts, we see a falling wedge pattern since April (where prices make lower highs and lower lows) which generally indicates an upside breakout could be near. On a longer timeframe, we are close to the 6-month uptrend line, where prices have bounced off in the past. Additionally the $78 resistance level provides us with further confidence that prices are likely to remain supported at the current levels before making a jump higher. As demand from the world’s largest consumer of soybean oil revives and technical levels remain intact, we expect more upside from here! Staggered entry at 79.25 and 78.25 with stops below 77.25 and targets at 84 and 87.60. Disclaimer: The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. Nor are they used to promote any specific products or services. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios.
CBOT:ZL1!Long
by inspirante
1
China ETF GXC to launchAs previously described, yes, the GXC ETF appears to have found its footing to launch. The weekly chart has clocked a higher low, and this week's candlestick is a nice bullish one with a long-ish trailing tail at the bottom, which is a bullish indication. The daily chart shows the week closing at a gap resistance, and above the MA band. Technical indicators are also bullish. Appears ripe for a bullish relaunch! ============================== On a side note, and non-chart related, I just liek to mention something now, that should help in chart reading for anyone. You see, many have told me about China, its severe lockdown, its impact on the economy, and such. I get all that, and I do agree to some extent. These fundamental and geopolitical aspects do form a part of my analyses as well; or at least I look for alignment. This is after all, part of critical analysis over technical analysis... the art in the science. Another aspect I would also like to point out is that biases can be very entrenched and catch us unaware. Even to me it happens, despite being aware about it. You see, I opine that China knows something about the CoV2, and their economy. 5000 years of histroy did not go to waste. IF at all, China learns much more from their rich history than any other IMHO. Bearing this in mind, I find myself asking what is it that they know that I do not yet know. While not getting the answers with clarity, it allows me to think out of the box. And particularly, deviate from Western media and thinking that China this and China that... I do not disagree with their assessment, or reporting, but I find that a large degree of biases are infused in the analytics. Hence I form my own, and dare to deviate where required. Again, adjustments are made, when and where necessary. So... do think about these points when we assess another country or economy, or commodity for that matter. In the longer foreseeable future, I really see China doing better than most of the (western) world. (possibly add Russia into that, but it is way too early and another story for another time) Stay safe and well!
AMEX:GXCLong
by Auguraltrader
1
USD/CNH May Resume Broader Uptrend as China Faces Growth WoesThe US Dollar may regain its footing against the Chinese Yuan amid favorable fundamental headwinds. China's zero-Covid policy has been weighing on local economic output. Meanwhile, rising fears of a recession in the US are slowly weakening global growth expectations. This leaves China in a tricky spot, even if conditions open up locally. A slowing global economy could sap the demand for Chinese goods. Diverging monetary policy is also favoring the US Dollar against the Chinese currency. On the daily chart, USD/CNH has left behind a bullish Morning Star candlestick pattern. Further upside follow-through could open the door to further gains. That would place the focus on the May high at 6.8376. Otherwise, clearing immediate support at 6.6480 exposes the Mat low at 6.6119 as the 50-day Simple Moving Average nears.
by QM_Dubrovsky
AUD Relief Rally to Get Chinese SupportMarkets have been dreadfully negative in recent weeks but we have in recent days begun a relief rally in US stocks and most FX pairs. AUD has led higher after new election and new China friendlier party in charge. On that note china made first high level contact in 2 years. We like AUD to rally with stocks and sentiment alone but the kicker would be if US drops tariffs on China and they reciprocate by dropping tariffs on Australia wine/coal. easyMarkets Account on TradingView allows you to combine easyMarkets industry leading conditions, regulated trading and tight fixed spreads with TradingView's powerful social network for traders, advanced charting and analytics. Access no slippage on limit orders, tight fixed spreads, negative balance protection, no hidden fees or commission, and seamless integration. “Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. easyMarkets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based o n a recommendation, forecast or any information supplied by any third-party."
Long
by easyMarkets
Equities give back gains - ProfZero not falling for bull trap 🐻INVESTMENT CONTEXT Equity markets took a breather on May 23, as operators reacted positively to U.S. President Biden commitment to review Trump-era tariffs imposed on China Accumulated gains are now being quickly given back, as futures on May 24 point to red territory for both S&P 500 and Nasdaq (dropping 1.21% and 1.88%, respectively). Snapchat (SNAP) in particular cratered 30% in the after-market on anticipated top- and bottom-line miss, dragging Pinterest (PINS) and Meta Companies (FB) 12% and 7%, respectively. Zoom (ZM) instead popped 16% over-the-counter on sales forecast beat An initial remark by President Biden that that U.S. military will intervene to defend Taiwan should the island be attacked was later walked away by White House officials International Monetary Fund (IMF) Kristalina Georgieva hinted at further cuts for this year's global economic growth PROFZERO'S TAKE The ongoing market jitters must be nerve-wrecking for the cohort of retail traders that entered the market during pandemic times. A sustained period of tech-fueled growth has quickly reversed, with Nasdaq plunging into bear market (year-to-date performance down 27%) and S&P 500 teetering on the brink of one (negative 17% since the peak in November 2021). Pandemic-era dears Pinterest (PINS), Snapchat (SNAP), Twitter (TWTR) are now down at least 50% from their peaks; blockchain assets trade even deeper in the red. Is this the end of Growth? To ProfZero, that amounts to as much as asking - are we really building the next decade on coal, legacy banking and neo-protectionism? Clocks tick on, not back Speaking of innovation, Samsung (ticker: 005930) is investing USD 356bn over the next 5 years in semiconductors, biopharmaceuticals and next-generation technologies to drive "long-term growth". Curiously enough, neither coal nor plastics appear on the plan IMF Managing Director Kristalina Georgieva's admission that a global recession is not in the cards, but shouldn't be ruled out altogether, resonates with JPMorgan's CEO Jamie Dimon seeing "big storm clouds" on the horizon, just but darkening a currently strong economy. ProfZero already underscored the resilience of Main Street in Q1; however, trading is all about the future, and ProfZero still fails to see a sufficiently credible deterrent to avert a recession. A ceasefire in Ukraine, and normalization in energy markets would be a fair start "Frailty, thy name is... BTC". ProfZero keeps it cool on blockchain - not paying the bears' lunch
CME:BTC1!
by ProfZero
TRX the great CN wall of blockchain! TRX has been going up for some time. It is by far the best positioned alt to capture the Asian markets. Overall the fundamental thesis behind this token is very bullish. China focus on keeping control of its web and IT infrastructure places TRX in a prime position. However, it is just as suceptible to the CN and US money printer as any other alt. The current off season pump, is unjustified by macro fundamentals. It is my current opinion it will not last. I will revisit this token at a later date.
Short
by TheBitcoinGeneration
2
SSE China bottomed@2863;may retest it before an abc to 3500SSE china composite index may have already bottomed at 2863.65 in April. It is now at my yellow pivot zone. It may go back down to retest the low. 2888 is a very impt FIBO level, exactly @0.786 retracement & is also coinciding with exactly 0.236 of my Fibo strategy on 2 separate retracements. It is highly probable that SSEC may rally on early June. It may reach 3300 in early August before a long consolidation above the yellow pivot zone before another rally in early Nov2022 reaching as high as 3500 In 1Q2023. (A zigzag move) If we see the Macro view in weekly Chart, SSEC actually finished wave 2 in 2005 at 1008.60. From there it zoomed up to 6124 ATH in Oct2007 just before the 2008 crash. From these 2 points it is actually making a very big wedge that is the big & long wave 4. The apex of this wedge has a definite destination. GUESS WHERE: exactly at 3500! It will whipsaw above & below the 3300 to 3500 zone for a while. It may reach as high as 3740 to 4000 before it finally breaks out of this BIG WEDGE to start the final wave 5. Time to shine after zero-covid accomplishment. Not trading advice
INDEX:000001Long
by xtremerider8
China ETF GXC finding its foot to launchThe China ETF, GXC, has in recent weeks been beaten down. This is great part dur to concerns about their ideology about a Zero COVID strategy, where it comes with great economic costs. The Western media (mostly) has had a field day whacking China on their "primitive" idea, saying that it is impossible, it is unreasonable, it is irrational, etc. I beg to differ... The saying... "Do not listen to what people say; watch closely what people do" is apt for application here. China has an idealogy it is willing to play out. It also indicates that there is something about CoV2 that they might know, which if true, are not telling the rest of the world about it. And as the world is in bewilderment, makes a laughing stock of China, I do beg to differ. Something deep, something beyond what meets the eye is underlying this hidden dragon. Meanwhile, with bated breath it can be observed the Chain equities have been beaten down... as Shanghai is locked down, and Beijing is at risk of being locked down too. Thing here is... intently watching and looking for a bottoming, it is observed that it might be just starting to break out to the upside. The GXC Daily chart is showing a pick up in Money Flow, MACD and RPM are starting to synchronously push upside. Still early days, but with turning indicators, and as price closed the last day of the week above a consolidation range, it is encouraging Would be looking for a triangle / trend line breakout, with indicators breaking out into bullish territory. The next two weeks would be critical to watch closely.
AMEX:GXC
by Auguraltrader
1
Pound rises on US inflation, GDP loomsThe British pound is in positive territory, as the currency tries to break a four-day losing streak. In the European session, GBP/USD is trading at 1.2355, up 0.36% on the day. US inflation dipped in April, but still came in above the forecast. Headline CPI dropped from 8.5% to 8.3%, above the estimate of 8.1%. Core CPI came in at 6.2%, down from 6.5% but above the estimate of 6.0%. The US dollar is broadly lower as a result, although the decline would have been sharper had the estimates been right on. Today's inflation data will no doubt result in some headlines proclaiming an "inflation peak", but I would caution that it seems premature to declare that inflation is on its way down after just one release. Higher interest rates will do the job and curtail inflation, but it will take time. In the meantime, today's inflation report will not change the Fed's stance, and the CME's FedWatch has pegged the likelihood of a 50-bps rate hike in June at 89%. Looking forward, inflation gazing has become even trickier in the current environment. There are huge unknowns around price pressures due to the Ukraine war, as well as the extent of China's slowdown and the impact on supply chains due to China's uncompromising zero-Covid policy. With energy prices at very high levels, it will be difficult for headline CPI to come down. Over in the UK, we'll get a load of data on Tuesday. The key release, Preliminary GDP for Q1, is expected to slow to 1.0%, down from 1.3% in the fourth quarter. The UK economy is showing an unhealthy mix of slower growth together with soaring inflation, which has raised concerns about stagflation. The BoE has been raising rates to curb inflation, but investors have not been impressed, as the pound has hit hard times and hit a 23-month low earlier this week. There is support at 1.2199 and 1.2056 GBP/USD faces resistance at 1.2272 and 1.2418
by OANDA
Which Chinese firms face delisting from US stock exchanges?Geopolitical tensions between China and the US have escalated in recent years amid efforts by both countries to become the world’s economic powerhouse. Speculations that the Chinese economy would overtake the US by 2030 have led to tit-for-tat tariffs, sanctions, and a revamp of capital market rules aimed at reducing Chinese companies’ access to American investors’ money. Last week, the US Securities and Exchange Commission added more than 80 more companies to a growing list of Chinese firms that are facing a potential delisting from US stock exchanges. Trump-era accounting law Former President Donald Trump signed into law the Holding Foreign Companies Accountable Act (HFCAA) in December 2020, threatening to kick Chinese companies off US bourses if they fail to comply with auditing rules set by the US Public Accounting Oversight Board. China has since repeatedly slammed the law, describing it as discriminatory and distorts "the basic norms of the market economy." Beijing also denies access to listed companies’ accounting documents, citing state secret concerns. Protecting state secrets The country's State Secret Law, which was enacted in May 1989, seeks to protect state secrets and safeguard national interests. This law has prevented the Chinese units of the Big Four accounting firms from handing over certain corporate information to overseas entities. Even before the HFCAA was passed, the US has already expelled a number of big Chinese firms like the country’s big three telcos: China Telecom (HKG:0728), China Mobile (HKG:0941) and China Unicom (HKG:0762). China Telecom and China Mobile have since raised funds in the mainland market, joining China Unicom to tap into local capital. The Trump administration cited the company’s alleged ties with the Chinese military as the reason for the move. Chinese oil major China National Offshore Oil or CNOOC (HKG:0883) was also delisted from the New York Stock Exchange in October 2021 for the same reason, prompting it to raise funds at home. Less than a month ago, CNOOC raised about $4.4 billion on the Shanghai Stock Exchange in one of this year’s biggest IPOs. Most recently, more firms could be booted from US bourses after the SEC released a provisional list of firms that are found to be violating US auditing rules. Dozens face delisting risks Last week, more than 80 companies have been added to the list including CNOOC peers Sinopec (NYSE:SNP) and PetroChina (NYSE:PTR). Both companies are already listed on the Shanghai bourse. Tech firms including e-commerce giant JD.com (NASDAQ:JD), Tencent Music Entertainment (NYSE:TME), Trip.com (NASDAQ:TCOM) and electric carmaker NIO (NYSE:NIO) were also added to the list last week, joining big names like aluminum giant Aluminum Corp. of China or Chalco (NYSE:ACH). Some firms like JD.com have since vowed to protect their US listing status. The company on Thursday said it will "strive to maintain” its listing on the Nasdaq stock market and has been actively exploring possible solutions. Market reaction The Nasdaq Golden Dragon China Index, which tracks 98 of China's biggest US-listed firms, tumbled over 17% over the past five trading sessions since the May 4 SEC announcement. The passage of the HFCAA marks the latest challenge for US-listed Chinese companies after the SEC earlier warned American investors about investing in shares of Chinese companies that operate through a variable interest entity (VIE) structure, which had been used by companies like Alibaba (NYSE:BABA) to bypass foreign investment restrictions. The SEC warned in September 2021 that if either the Chinese firm or its US-listed shell company breach their contracts, "US investors may suffer significant losses with little or no recourse available."
NASDAQ:HXC
by BlackBull_Markets
Oil Short From 108$ Oil has been propped up in recent days on the back of EU embargo on Russian oil rumours. It seems as if there might be a consensus among the member states but most are requesting exemptions for at least a matter of years before they are forced to get off it. China are also struggling with COVID-19 implications, lockdowns and seems as though the supply chain link to the U.S. is also becoming strained once again. On the back of that demand decline in China, potential slowdown in the U.S. as a result of that and combination of higher rates.
TVC:USOILShort
by UnknownUnicorn15362357
5
USDCNH Update - Major Breakout UnderwayIf you bought this pair when I first featured it here, you have made money. If you were leveraged 50:1 - which - often is the case in forex, you have likely returned more (% returned) in this trade than what you can expect in three years of investing in a vanilla benchmark-tracking 401K. I remain long USDCNH and will continue to cover it for the foreseeable future. Something to consider: such a rapid deterioration of the Yuan is reason to speculate the Chinese economy is becoming increasingly decoupled from anything that resembles the last 10-12 years of price action. For example, if the Yuan were to surpass $7.20, I would start to suspect two possible (again I can't "predict" anything) situations: 1. The Chinese economy in severe distress (hopefully not). 2. Intentional disregard for participation in the global economy, as it exists currently (hopefully not). Again, we are not there YET; all we can do is read the chart and analyze information / data as it becomes available. Pray for peace. God Bless
Long
by ChiefMacro
CHINA: End of a 17 Year Consolidation - Epic Breakout next? Regardless of your political bias, here's the bullish case - Pandemic, regulatory clampdown, China-fear mongering has driven stocks down - Broke down from pennant in April 2022 but recovered and closed within pennant - bear trap? - Structural shift in new world order (see Ray Dahlio's animated explanation www.youtube.com) - Curious timing where the major investment banks have gotten majority control of their China business in 2020 - US coming to an end of a 40 year major cycle and a 90 year mega cycle - have printed money out of their problems for the last decade or more. End of low interest rate environment. Funds have to flow somewhere!
SSE:000001Long
by fightingdragons
1