[Market Commentary] Dow and Indian stock index NIFTY 50 near all-time highs
- The biggest concerns in financial markets are inflation, tapering in various countries (Canada, NZ), FRB's tapering, and US budgeting
- The biggest concerns in the crypto industry are China regulation and US taxation
Last Friday, May 28, as Monday the 31st is Memorial Day in the United States, the US market hardly moved, while in Europe, Germany's DAX and France's CAC40 rose by 0.74% and 0.75% respectively from the previous day. On a daily basis, the German DAX is showing a move toward an all-time high, and CAC40's next target would be the high of September 2000.
In US equities, NVIDIA’s rebound stood out. The US 10-year Treasury yield slid slightly, and gold remained steady around the $1,900 level. The US April PCE deflator came out, surpassing the Fed's 2% target on an annual basis, which supported gold. The VIX, often called the fear index, was 16.76, staying low. The Nikkei average traded just below 29,000 yen. There was little movement in the currency markets, with only a slight correction in the NZD observed (down about 0.3%).
The pound, euro, and CAD continued to be firm. The yuan was at its highest against the dollar in three years. Copper and gold, considered China-linked commodities, rose, while NY crude oil capped its gains. Stock indices reaching all-time highs were observed globally, with US Dow and India’s NIFTY 50 nearing record highs.
Crypto markets still show volatility, but dramatic moves seen in the prior weeks have diminished. On a 24-hour basis, prices have retraced somewhat, with Bitcoin around $30,000–$35,000, down a notch from last Friday, and Ethereum hovering around $2,300.
Robert Kiyosaki, author of Rich Dad Poor Dad, said he might start buying Bitcoin if the price reaches $27,000. He criticizes the US Biden administration, the Fed, and the Treasury, predicting the decline of the dollar.
This week, US employment data, PMIs for manufacturing and services from around the world, and GDP releases are anticipated.
【Stocks with Trading Appeal】
Dow, DAX, NIFTY 50
EURJPY, GBPJPY, CADJPY
【Notes on Market Commentary】
Please read with the following points in mind.
① Whether the素材 is transient
② Whether the impact on prices will be sustained
Divergence: Overviewing financial markets to discuss crypto market conditions
- Market commentary for traders
- Positioning of crypto assets from financial markets
※ Traders can trade anything, so you may focus on hot and appealing products; if there is no appeal in crypto assets, you may ignore it
Mindset as a Trader
・“Explanations after events” are enough to read; they do not affect forecasting ability or trade performance.
・It is not possible to explain the current market movements.
・Even if the direction is unclear, it is possible to make profits.
・Markets where analysts or strategists say “rise” can be traded for pullbacks or consolidation to profit.
Traders who do not know market principles can still win. Reports written by someone like me, who differs in stance from those who only provide market analysis without direct trading relevance, may still be somewhat similar on the surface to general market commentary. Please understand that it is inevitable that my own writing may appear similar, though.
