The euro is drifting on Friday, trading at 1.0777.
EUR/USD posted its strongest one-day performance since late April on Thursday, gaining 0.69%. The driver behind the upswing was a hawkish ECB President Lagarde, who said, “There is no clear evidence that underlying inflation has peaked”. Lagarde’s remarks were made just after inflation data showed that inflation had fallen sharply in the eurozone. Core CPI, which is followed closely by the ECB, also eased, from 5.6% in April to 5.3% in May. This was below the consensus of 5.5%.
Lagarde seems intent on keeping expectations of a pause at bay, saying that “we still have ground to cover” before rates hit their peak. Other ECB officials hinted on Thursday at further rate increases, and the markets are expecting a 0.25% hike at the June 15th meeting. If inflation continues to fall, pressure will grow on the ECB to take a breather and pause rates.
Will nonfarm payrolls beat expectations?
The US releases nonfarm payrolls later today, in a highly-anticipated release. The US labour market has been solid, despite the Fed’s aggressive rate hikes. The Fed would like to take a pause, but it first needs the labour market to cool down. The ADP Employment report, which precedes nonfarm payrolls, was solid, although investors tend to view that release with a grain of salt. ADP came in at 278,000, down slightly from 291,000 and crushing the consensus of 170,000. Nonfarm payrolls are expected to fall to 190,000, following 253,000 prior. If nonfarm payrolls mimic the ADP and surprise to the upside, it could cement a Fed rate hike at the June 14th meeting. Market pricing has been swinging sharply, with the odds of a pause currently at 76%. Only a week ago, the odds of pause stood at 36%.
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EUR/USD Technical
USD/JPY is steady on Friday, trading at 138.95, up 0.11%. The yen has posted four straight days of gains and is up 1.1% this week.
The yen has rebounded, after coming close to the 141 line on Tuesday. Much of the yen’s improvement is due to verbal intervention, as Tokyo reacted sharply to the yen’s downswing. Masoto Kanda, Japan’s top currency diplomat, warned on Tuesday that Tokyo would “closely watch currency market moves and respond appropriately as needed” and hinted that currency intervention was on the table if necessary. Japan has intervened previously in the currency markets and would likely do so again if the exchange rate swings too sharply.
There has been growing speculation that the Bank of Japan will begin to normalise policy, and such moves could have a massive impact on the yen. Earlier in the week, the ECB weighed in, warning that policy normalisation could “test the resilience of global bond markets”. It was most unusual for one central bank to comment on the activities of another, and the warning underlies the concern that the ECB and no doubt other central banks have if the BoJ tightens after decades of an ultra-loose policy.
Will nonfarm payrolls beat expectations?
In the US, all eyes are on nonfarm payrolls. The ADP employment report, which precedes nonfarm payrolls, was strong, coming in at 278,000, down slightly from 291,000 and crushing the consensus of 170,000. Investors don’t consider the ADP all that reliable, but there are other indications that the US labour market remains resilient, such as Thursday’s solid unemployment claims report. Nonfarm payrolls are expected to fall to 190,000, following 253,000 prior. If nonfarm payrolls surprises to the upside, it could cement a Fed rate hike at the June 14th meeting. Market pricing has been swinging sharply, with the odds of a pause currently at 76%, according to CME’s FedWatch. Only a week ago, the odds of pause stood at 36%.
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USD/JPY Technical
USD/JPY has edged higher on Thursday, trading at 139.66 in the European session. The yen has recovered after falling as low as 140.93 this week, its lowest level since November.
It has been a quiet week in Japan on the economic calendar, with no major releases. We could see stronger movement from USD/JPY on Friday, with the release of US nonfarm payrolls.
The US labour market remains strong, and Wednesday’s JOLTS Job Openings easily beat expectations, rising to 10.1 million. This was above the upwardly revised prior reading of 9.7 million and the consensus of 9.4 million. This is another indication that the labour market remains very strong, much to the frustration of the Fed, which can’t wrap up the current rate-tightening cycle until the labour market cools off. We’ll get a look at nonfarm payrolls on Friday, with the markets expecting a gain of 190,000, following from 253,000 prior. The NFP report will be doubly significant as the Fed meets next on 14 June.
Fed members remain divided on whether to hike or pause in June. Fed member Mester supports another rate hike and said on Wednesday that she did not see a “compelling reason to pause”, saying there was a strong case for hiking and then holding rates. On the opposite side, members Jefferson and Harker said on Wednesday that they supported a pause in June and basing future decisions on the data. Jefferson warned that the effects of tightening had not been fully processed by the economy and higher rates could increase stress on the banking sector.
The US House of Representatives approved the debt ceiling deal on Wednesday. The measure sailed through, by a vote of 314-117. The Senate is expected to vote on the bill later this week, with the government forecast to hit the debt ceiling by 5 June. The debt ceiling crisis sapped risk appetite and has helped the US dollar post broad gains against the majors. Fed member Loretta said that the deal removes a “big piece of uncertainty” about the economy. Once the deal becomes law, I expect risk sentiment to improve and that may put downward pressure on the US dollar.
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USD/JPY Technical
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The London Metal Exchange (LME) experienced a surge in zinc inventories, leading to a deeper contango in commodities finance. The influx of zinc into LME warehouses, particularly from Port Klang, resulted in a rise of 13,175 tonnes, bringing the total to 87,500 tonnes, the highest level since June 2022. Concurrently, on-warrant stocks increased by 13,775 tonnes to 81,825 tonnes, the highest since April 2022. These developments, along with the widening cash/3m contango for zinc, indicate an ample supply situation in the short term.
The Brent-WTI spread a key indicator of CFD commodities market sentiment, widened to a two-month high of $5 per barrel. This increase came as ICE Brent crude traded slightly positively, while NYMEX WTI crude experienced softer trading. The American Petroleum Institute (API) reported a surprising build in US crude oil inventories, with a 5.2 million barrel increase over the previous week. Expectations had anticipated a withdrawal of approximately 1.2 million barrels, making this inventory growth the largest weekly build in over three months. Additionally, Cushing crude oil stocks rose by 1.78 million barrels.
TTF natural gas prices briefly surged to around €29/MWh before retreating to approximately €25/MWh following an operational halt at Equinor’s Hammerfest LNG plant in Norway due to a leak. The plant, which experienced an unplanned halt of over three weeks, was restarted over the weekend. Despite this disruption, Europe maintains a sufficient natural gas supply for the summer, with gas storage tanks filled at 68.6% of capacity, surpassing the five-year average of 50.6% at this stage. The market finds reassurance in the adequate supply levels, considering gas to be one of the best commodities to invest in.
Chile reported a 5.2% month-on-month drop in copper output in April. Project delays, water restrictions, and lower ore quality affected the matter greatly. Cumulatively, copper production declined by 2.1% year-on-year for the first four months of the year. In parallel, LME data reveals an increase in zinc inventories, with on-warrant stocks rising to 81,825 tonnes, the highest level since April 2022. The influx of zinc into LME warehouses, including the notable additions from Port Klang, reflects changing dynamics in the metal markets and may contribute to the broader supply landscape.
MMC Norilsk Nickel has revised its estimates for the palladium supply deficit to 200koz, down from the previously projected 300koz. The revision accounts for the impact of new emissions regulations in China. Furthermore, Norilsk Nickel expects the global nickel market to encounter a supply surplus of 200kt in 2023. That’s a significant increase from the previous estimate of 120kt. Signaling potential shifts in the nickel commodities finance dynamics, the surplus is primarily driven by the ramping up of new nickel pig iron (NPI) and NPI-to-matte capacities in Indonesia.
The spread between Robusta and Arabica coffee tightened, trading near the lowest level since January 2021 at USc60/lb. Robusta prices have surged due to concerns over decreasing supplies from major producers such as Vietnam, Indonesia, and India. Meanwhile, projections of a significant Arabica crop from Brazil in the latter half of the year have weighed on Arabica prices. The act led to a narrowing spread between the two types of coffee. Additionally, e’s grain exports in the 2022/23 season have declined by 3.7% year-on-year, with wheat exports falling by 17%. The country’s total grain exports will most likely decrease by 40% in the current year. The disruptions in the Black Sea grain corridor and restrictions among some European countries are the leading cause.
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Oil prices experienced a notable 3% surge on Thursday, marking their largest daily gains in two weeks. The rally came as traders awaited the upcoming OPEC+ meeting on Sunday and found solace in the news of the US House of Representatives passing a bill to suspend the country’s debt ceiling. Despite rising inventories in the United States, these positive developments helped offset concerns and supported the recovery in trading oil.
US West Texas Intermediate crude (WTI) recorded its biggest daily gains since May 5, rising by $2.01 or 3%, settling at $70.10 per barrel. Similarly, Brent crude futures saw a surge of $1.68 or 2.3%, settling at $74.28 per barrel, marking their largest daily gains since May 17. The recovery in both benchmarks followed two consecutive sessions of losses, indicating a renewed positive sentiment in the oil market.
The successful passage of the debt ceiling bill in the US House of Representatives helped alleviate concerns about a potential default. However, market analysts emphasize that the overall demand outlook remains uncertain. Factors such as poor performance in the trucking industry contribute to the murky demand landscape. Nonetheless, the bill’s progress to the Senate signifies progress in avoiding a default scenario.
Attention in the oil tank market has turned to the upcoming June 4 meeting of OPEC+ nations. Sources from within the alliance indicate that there are unlikely to be any deeper supply cuts decided during the meeting. However, some analysts suggest that the possibility remains, considering disappointing demand indicators from China and the United States in recent weeks. The outcome of the OPEC+ meeting will have a significant impact on market dynamics.
Data from the Energy Information Administration revealed an unexpected increase in US crude oil pump stockpiles last week. The rise can be attributed to a jump in imports and a decline in strategic reserves, which reached their lowest level since September 1983. This unexpected development further adds to the prevailing uncertainties in the oil market as traders carefully analyze supply and demand dynamics.
India’s imports of n crude oil reached a record high in May, surpassing imports from Iraq, Saudi Arabia, the UAE, and the US combined. India imported 1.96 million barrels per day (bpd) of n crude, accounting for a significant 42% of all Indian crude imports. This surge in n oil imports has undermined OPEC’s share of supply to India, hitting its lowest level in at least 22 years. The influx of cheaper n crude continues to attract Indian buyers and reshape the country’s cheapest oil prices standard.
China and India, the world’s top and third-largest oil importers, respectively, both recorded record-high imports of n trading oil in May. Combined, the two countries bought 110 million barrels of crude from , marking an almost 10% increase compared to April. These significant import figures arrived ahead of the critical OPEC+ meeting, where the alliance should maintain current crude oil production levels.
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Investors must stay informed about the latest opportunities as the investing world evolves. In June, several undervalued stocks and the most volatile stocks showed tremendous growth potential, attracting the attention of savvy investors. Among these fast-growing and volatile stocks with the best share prices are Mirati Therapeutics Inc., Rivian Automotive Inc., and Apollo Global Management Inc. Each of these companies operates in distinct industries, presenting unique investment opportunities in the stock market flotation. Let’s delve into the details of these companies and explore why they are capturing the market’s attention.
Mirati Therapeutics Inc. is a biotechnology company at the forefront of developing innovative medications for cancer treatment. Also, their flagship medication, Krazati, shows promising results in treating metastatic non-small cell lung cancer. Despite reporting a loss per share in the most recent quarter, Mirati Therapeutics Inc. has attracted significant investor interest due to its cutting-edge research and development efforts. The potential for breakthrough therapies in the cancer treatment sector presents an exciting opportunity for long-term investors.
Rivian Automotive has taken the electric vehicle market by producing SUVs, trucks, and delivery vans. Despite reporting a loss per share in the most recent quarter, the company has garnered immense interest from investors and industry experts. With a strong commitment to sustainability and innovative design, Rivian has positioned itself as a major player in the rapidly growing EV industry.
Furthermore, the company’s strategic partnerships with global corporations and its ability to attract substantial investments highlight Rivian’s potential for success. Its focus on consumer and commercial markets sets it apart from many other EV manufacturers.
Apollo Global Management is a private equity firm that specializes in distressed assets, buyouts, and acquisitions. The company has made significant moves to expand its portfolio in recent months. One notable example is Apollo Global’s acquisition of Univar Solutions, a specialty chemical distributor, in an all-cash transaction worth $8.1B. Furthermore, the company revealed a $500M investment in the education technology firm Cengage Group.
These strategic investments demonstrate Apollo Global Management’s ability to identify lucrative opportunities across diverse sectors. While the company reported a net loss per share for the first quarter of 2022, its long-term growth prospects remain promising. As the global economy recovers and investment activity increases, Apollo Global is well-positioned to generate substantial returns for its investors.
In conclusion, the fast-growing and undervalued stocks of Mirati Therapeutics Inc., Rivian Automotive Inc., and Apollo Global Management Inc. present exciting investment opportunities across different sectors. Mirati Therapeutics’ pioneering research in cancer treatment, Rivian Automotive’s ambitions in the EV market, and Apollo Global Management’s strategic investments in various industries have captured the attention of investors. However, investors must conduct thorough research, assess their risk tolerance, and consult with financial advisors before making investment decisions. The stock market is dynamic, and while these companies show promising growth potential, staying informed and adapting investment strategies is crucial. By staying abreast of market trends and developments, investors can position themselves for success in the fast-paced investing world.
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Gold and silver prices are set for their largest weekly gain in nearly two months as optimism grows over a potential pause in the Federal Reserve’s tightening campaign. Bullion’s appeal is being bolstered by a softer dollar and expectations that the Fed will keep interest rates unchanged in June. Spot gold edged 0.1% higher to reach $1,980.49 per ounce, while US gold/silver ratio futures remained steady at $1,997.50. With a 1.7% increase so far this week, gold is on track for its best performance since early April.
Market sentiment in the gold sector remains positive, with analysts predicting further upward movement in prices. Edward Meir, a metals analyst at Marex, suggests that gold could see additional gains as the Fed will maintain a hold in June. Philadelphia Fed President Patrick Harker’s recent statement advocating against a rate hike, despite inflation levels coming down slowly, supports the expectation of unchanged rates. Currently, markets are pricing in a 71.5% chance of no rate change in June, further boosting gold’s allure given its lack of yield during periods of rising interest rates.
The decline in the dollar index to a one-week low has made gold more affordable for buyers holding other currencies, contributing to its upward momentum. Additionally, the passage of bipartisan legislation by the US Senate, lifting the government’s debt ceiling, has averted the potential risk of a historic default.
Investors are closely watching the US Labor Department’s non-farm payrolls (NFP) report. Its results could impact market sentiment and influence the Federal Open Market Committee’s (FOMC) decisions. Tim Waterer, the chief market analyst at KCM Trade, suggests that a strong labor market print could lead to a dollar rebound, which may dampen gold’s performance.
At this point, XAG/USD price might surpass the immediate 50-EMA hurdle at approximately $23.95. Therefore, it could target the $24.00 level and potentially aim for the $24.55-65 zone. Interestingly, up to this day, it has served as a significant barrier since early January. A breakthrough beyond this zone might open doors for further gains, with the $25.00 round figure and the yearly high near $26.15 becoming attractive targets for silver buyers.
However, a downside scenario could see silver finding support at the resistance-turned-support confluence around $23.50. In such a case, the 200-EMA level of around $22.85 and the previous monthly low of $22.68 are likely to be key levels to watch.
In summary, the gold/silver ratio is benefiting from the expectation that the Federal Reserve will pause its interest rate hikes at the upcoming June FOMC meeting. With a softer dollar and the likelihood of unchanged rates, 9ct gold price per gram has experienced its strongest weekly gain since April. Silver news, too, has witnessed positive momentum, breaking through resistance levels and showing signs of further advancement. The market’s focus now shifts to the US jobs report, which could shape future market sentiment and impact precious metals’ performance.
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In the ever-changing world of the stock market, a few hot-stock companies have managed to capture the attention of investors with their impressive after-hours performances. Lululemon, MongoDB, and Five Below have recently made significant headway, surprising analysts and investors. Let’s delve into the details of their remarkable achievements and what they mean for the future of these companies.
Lululemon Athletica, the renowned athletics apparel retailer, experienced a significant boost in its stock price. Surging by 12% after the release of its better-than-expected fiscal first-quarter earnings report. The company’s remarkable performance was further solidified by an upward revision of its full-year guidance. Lululemon reported a staggering 24% growth in sales from the year-ago period. Showcasing its resilience and ability to adapt to the changing market dynamics. This impressive growth can be attributed to Lululemon’s commitment to providing high-quality products like Lululemon joggers and Lululemon tops that resonate with consumers seeking comfort and style. The company’s strong performance reinforces its position as a key player in the athletic apparel industry.
Shares of MongoDB, the data developer platform, experienced an astonishing 19% jump following the release of its blowout guidance. The company’s second-quarter revenue projections ranged between $388 million and $392 million. Surpassing analysts’ expectations of $362 million, as per Refinitiv. MongoDB’s remarkable performance can be attributed to its continuous innovation in providing robust data management solutions that cater to the evolving needs of businesses worldwide. The company’s ability to exceed market forecasts reflects its strong market position and commitment to delivering value to its customers. MongoDB’s surge after the bell further solidifies its position as a leader in the data developer space.
Shares of Five Below, the discount store chain, soared by 6% in extended trading following its earnings report that surpassed analysts’ expectations. Five Below reported 67 cents per share, outperforming the Refinitiv-poll forecast of 63 cents per share. However, the company fell slightly short of Wall Street’s revenue forecast of $728 million, reporting $726 million in revenue. Additionally, Five Below’s second-quarter guidance is needed to meet analysts’ expectations. Nonetheless, the positive surprise in earnings showcases the company’s ability to navigate the challenging retail landscape and maintain profitability. With its unique value proposition and ability to attract cost-conscious consumers, Five Below demonstrates resilience in a competitive market.
In conclusion, these hot-stocks – Lululemon, MongoDB, and Five Below have each made substantial strides in after-hours trading, captivating the attention of investors and analysts. Lululemon’s better-than-expected earnings and raised guidance. MongoDB’s blowout guidance for the upcoming quarter and Five Below’s strong earnings performance showcase the exceptional achievements of these companies. Investors and market observers will undoubtedly keep a close eye on these companies as they navigate the ever-changing landscape of their respective industries. Furthermore, for investors seeking the best dividend-paying stocks UK and the best day trading stocks, it is important to conduct thorough research.
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In the realm of technological innovation, the field of haptic technology has been making remarkable strides in recreating the sense of touch. From virtual reality experiences to telerobotics and computer simulations, haptics have found their way into various applications over the past several years. However, recent breakthroughs in artificial skin technology hold the promise of taking haptics to an entirely new level. It might potentially restore the sense of touch for individuals with prosthetic limbs. This innovative technology might change the lives of people suffering from lost sensation due to scar tissue or other injuries.
The skin, being the largest organ in the human body, serves a vital role in protecting our internal organs from potential harm. Yet, it also plays a more intricate role in our daily lives. Touch sensation, which originates from a network of neurons embedded in the skin, allows us to perceive and interact with the world around us. When we touch an object, electrical signals are transmitted from the outermost points of our body to our central nervous system. That enables us to feel sensations.
However, when this connection is disrupted due to spinal injuries or the loss of a limb, people lose the sense of touch. That's why developing touch technology is so important. It promises to restore that feeling.
Researchers led by Wang et al. have recently unveiled an advanced e-skin technology that holds the potential to restore detailed sensory feedback and enable soft interaction with the environment. This remarkable e-skin closely mimics the physical characteristics of human skin. Moreover, scientists can program it to sense touch, temperature changes, and pressure. The data collected by the e-skin is then conveyed back to the brain through artificial neural networks. The latter effectively restores the fifth sense for those who have lost it.
One of the main challenges in developing e-skin has been creating flexible electronic materials that can replicate the properties of human skin. Recent advancements in soft device fabrication have made it possible to construct e-skin with greater flexibility. However, even the best flexible electronic materials still pose a risk due to their high voltage requirements. To address this issue, Wang et al. have developed a trilayer insulator. The company can seamlessly integrate the latter into the e-skin, ensuring it remains wearable and flexible without compromising safety.
Reconstructing the Brain’s Interpretation of Touch
Another significant hurdle in developing artificial skin lies in replicating the brain’s interpretation of sensory input and its corresponding reaction. When we touch something hot, our brain immediately recognizes the danger and triggers an unconscious withdrawal response. This rapid sensory feedback relies on the neural network connecting our skin to our brain. Reproducing this mechanism in artificial skin requires the construction of a network of solid-state synaptic transistors. It’s necessary to carry and encode the electrical signals generated upon contact.
To demonstrate the efficacy of their e-skin technology, Wang et al. conducted experiments using live rat models. By connecting the e-skin to the somatosensory cortex, which is responsible for processing tactile information, they were able to observe significant activation in the cortex when pressure was applied to the e-skin. This activation, in turn, led to substantial muscle responses in the rat. The latter indicates the potential for restoring touch sensation.
While widespread commercialization of this technology is still years away, the implications are vast. Apart from providing a means to restore touch sensation for amputees and individuals with touch-related conditions, e-skin could find applications in industries such as human-operated machinery and robotics. The data feedback provided by e-skin could improve operator performance, as well as enhance the capabilities of robots.
The recent advances in artificial skin technology represent a significant milestone in the quest to restore the sense of touch. Through innovative technology supplies and a deep understanding of technological factors, researchers have made remarkable progress in developing e-skin that closely mimics human skin and provides sensory feedback.
While there are still significant milestones to achieve in terms of safety and efficacy through animal and human testing, the future holds great promise for this remarkable project, as well as other types of technology aimed at improving our lives.
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Alphaterra ICO presents an ambitious and innovative project that aims to tackle major challenges. It aims to empower a strong community through the power of blockchain technologies and cutting-edge artificial intelligence tools. Alphaterra has the vision to become a leader in sustainable and ecological energy, as well as promote renewable energies. Thus, it strives to humanize the system and bring about positive change for both the planet and humanity. That's not all, though. The company also wants to foster an equitable communication ecosystem. On top of that, it will address crucial needs such as microcredit, access to education, and clean water.
The ongoing ICO sale of Alphaterra’s native token, ALFAT, running from March 1, 2023, to June 5, 2023, offers a unique opportunity for investors. Priced at 1 ALFAT = 0.1 USDT, the token holds the potential for long-term growth and profitability. With a total supply of 1,000,000,000 tokens, the project aims to provide a solid foundation for a fair and sustainable world. Besides, it offers attractive rewards for investment.
The company's goal is to position its alpha terra coin as one of the most successful cryptocurrencies globally. By leveraging blockchain technologies and technological innovation, the project aspires to create exponential value for investors. With a commitment to making a meaningful impact in fundamental areas of life, Alphaterra envisions a world where confidence in their token is high and the projects they support bring positive change to humanity.
The team has chosen the Binance Smart Chain (BSC) for the Alphaterra token due to several reasons. BSC, a hard fork of the Go protocol of Ethereum (geth), offers enhanced capabilities. DApps and tokens built on BSC are fully compatible with the Ethereum virtual machine (EVM). Moreover, BSC’s efficiency, security, and lower transaction costs make it an ideal choice for investors. This strategic decision reflects Alphaterra’s commitment to maximizing value and minimizing barriers for its community of supporters.
As the Binance Smart Chain continues to experience significant growth, the digital token ALFAT and the Alphaterra project are poised for success. By harnessing the potential of blockchain technologies and implementing innovative solutions, the company aims to revolutionize various sectors. It will simultaneously promote sustainability, fairness, and inclusivity. The project’s holistic approach, combined with its use of AI tools and cutting-edge technologies, positions it at the forefront of the crypto landscape.
Alphaterra’s potential for creating a fair and sustainable world through the power of blockchain and ALFAT token investment is clear. With the collective efforts of the founder team and their dedicated community, the project has the potential to break barriers, transform industries, and make a lasting positive impact on society.
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