In this week’s analysis, we are going to discuss the following markets

• Indices – S&P, Nasdaq, FTSE 100, DAX
• Cryptos – BTC, ETH, BNB
• Commodities – Gold, Silver
• Forex majors – EURUSD, GBPUSD, USDJPY

Indices Plunge Amid Economic Indicators and Global Events for 31-04 Aug 2023

Over the past week, we observed a significant dip in the indices markets, influenced by a combination of crucial economic indicators and events, predominantly in the USA. The downgrade of the US credit score rating by Fitch from triple-A to AA+ had far-reaching consequences, particularly impacting stock markets and indices. Consequently, major indices underwent a substantial decline. Fitch Ratings, a reputable American credit rating agency, underscored the profound impact of these developments on the stock and indices markets.

USA Indices

Tech Stocks Struggle: Nasdaq Composite Takes a Hit

Fitch’s pressure on stock markets was joined by bearish macroeconomic indicators last week. Manufacturing PMI readings for both domestic and international economies hinted at a contractionary trend. Given the Nasdaq index’s tech-heavy composition, the decline in ISM Manufacturing PMI (46.4 from the previous 46) alongside the services PMI (52.3 from the previous 54.5) explains the nearly 2.6% drop in the Nasdaq Composite. Notable constituents like Apple, Nvidia, and Tesla faced declines of 2.5%, 4.7%, and 3% respectively, painting the tech sector red as Nasdaq resiliently dropped by 2.6%.

S&P 500 Weathers Storm with Moderate Losses

The S&P 500 couldn’t escape the wave of negative news, slipping by 1.81%, albeit performing better than the Nasdaq Composite. Alongside Fitch’s rating decrease and manufacturing woes, the services sector also moderated, influencing asset allocation decisions. Global US Services PMI dipped to 52.3 from the previous 54.4, while Non-Manufacturing PMI decreased to 52.7 from 53.9, indicating a services sector contraction. Stocks within the S&P 500, including Microsoft, Amazon, Google, and Meta Platforms, endured losses of around 3%, while the S&P 500 managed a relatively small 1.8% decrease, a testament to its resilience.

FTSE 100 and DAX Face Economic Headwinds

FTSE 100 

Footsie experienced a nearly 2% drop amid a slight downturn in the London stock market. As a benchmark index representing the largest companies on the London Stock Exchange, it was influenced by Manufacturing PMI readings from the US and China pointing to a manufacturing contraction, particularly in the USA. The Bank of England’s interest rate hike to 5.25% elevated borrowing costs for London Stock Exchange firms, hampering consumer spending and signaling a broader economic slowdown. A stronger GBP, resulting from higher rates, added pressure, especially on FTSE 100-listed multinationals heavily dependent on overseas revenue. Individual stocks like Vodafone, Barclays PLC, and Lloyds Banking Group faced losses, contributing to FTSE 100’s 1.98% decrease.

DAX 

Amid tanking global indices, the DAX endured a significant 3.29% drop due to a retreat in European stocks. This retreat was triggered by the anticipation of the BOE’s interest rate decision following the US credit score downgrade. The additional bearish sentiment from manufacturing PMI data further pushed the DAX downward. Key constituents such as Deutsche Telekom, Airbus, and Mercedes-Benz Group faced declines ranging from 2% to over 4%, aligning with the DAX’s substantial drop. The combination of negative US figures and the credit score downgrade exerted notable bearish pressure on European stock markets, leading the DAX to plummet.

Indices technical weekly performance numbers (USD)

Cryptos for 31 – 04 Aug 2023

Amid a bearish market environment, cryptocurrencies displayed notable stability, offering a glimmer of reassurance for investors. Despite prevailing uncertainties, BTC, ETH, and BNB each showcased distinct resilience and responded differently to the week’s challenges.

BTC

Cryptocurrencies demonstrated remarkable stability during the recent market turmoil in the US. Investors, perceiving them as a potential future of finance, found reassurance in bullish reports from Global Accounting firm KPMG. Notably, KPMG highlighted BTC’s growing social dominance, indicative of increasing interest and discourse around the flagship digital currency. Despite the prevailing -0.28% dip, a stark contrast to the volatile indices market, BTC showcased its resilience and bullish potential, bucking global economic concerns stemming from bearish manufacturing data.

ETH

ETH, closely tethered to Bitcoin’s movements, weathered the bearish conditions with a minor -1.36% decline. Amid market downturns, cryptocurrencies, like other assets, often experience downward trends, and ETH mirrored BTC’s trajectory. A legal challenge against the founder of Ethereum browser wallet Metamask, accusing him of idea theft, contributed to the -1.36% dip. However, given Metamask’s role and Ethereum’s ongoing development efforts, this setback is unlikely to significantly impact ETH’s future.

BNB

Despite the prevailing bearish sentiment, BNB exhibited resilience and positive developments. Binance, the exchange backing BNB and its blockchain, expanded its footprint with the launch of Binance Japan and secured an Operational License in Dubai. Achieving a milestone of 150 million users, BNB managed to minimize losses, merely declining by 0.64%. This performance highlights BNB’s ability to navigate bearish trends and sustain its value throughout the week.

Crypto technical weekly performance numbers (USD)

Precious Metals Navigate Market Challenges with a slight decline for 31 – 04 Aug 2023

In the realm of precious metals, gold encountered a decline of 1.36%, driven by concerns over reduced inflation from a drop in the Eurozone’s Consumer Price Index (CPI) and the Bank of England’s rate hike. The robust US dollar exerted additional downward pressure on gold’s performance.

Gold’s Dip: A Closer Look

The premier precious metal saw a 1.36% decrease in its value, reflecting an overarching bearish sentiment in the financial markets. The Eurozone’s CPI receded to 5.3% from the previous 5.5%, slightly alleviating worries about inflationary pressures. Gold, often considered a safeguard against inflation, experiences reduced demand when inflation expectations show signs of moderation. This trend was reinforced by the Bank of England’s decision to raise interest rates, aiming to curb inflation rates. The USD displayed strength throughout the week, appreciating against other currencies, thereby intensifying the downward influence on flagship precious metals.

Silver’s Noteworthy Plunge

Silver, much like gold, is subject to the fundamentals previously discussed. However, its value experienced a significant drop of 3.03%. This decline was uniquely influenced by a robust labor market and lower unemployment rates, which collectively diminished the allure of safe-haven assets such as gold and silver.

Commodities technical weekly performance numbers (USD)

Forex Pairs for 31-04 Aug 2023

Despite the prevailing market turmoil stemming from Fitch’s credit score downgrade of the US to AA+ and bearish manufacturing PMI, the USD showcased remarkable strength. The driving force behind the dollar’s resilience was the positive unemployment data from the USA, underscoring the robustness of the labor market and bolstering the dollar’s dominance.

EUR/USD: Dynamics of Power and Influence

The EUR/USD pair experienced a decline of -0.64%, characterized by the potency of both the USD and EUR, supported predominantly by bullish news. A dip in the Eurozone’s CPI Year-over-Year inflation rate to 5.3% hinted at reduced inflation for the Euro. With the European Central Bank (ECB) less likely to tighten monetary policy, the Euro weakened against the USD. This shift was further propelled by the USD’s strength due to the robust US labor market, leading investors to anticipate a potential increase in Fed interest rates come September.

GBP/USD: Anticipated Moves in Contrast

GBP/USD recorded a 1.1% drop, despite the Bank of England’s (BOE) 0.25% interest rate hike to 5.25%. Investors accurately foresaw this BOE action, which had limited impact, given the USD’s sturdy position driven by a healthy US labor market.

USD/JPY: Navigating Monetary Currents

While Fitch’s analysis indicated that Japan’s monetary policy changes were unlikely in the medium term, the USD remained the pivotal factor. Amid these dynamics, the USD/JPY pair surged by 1.25%, necessitating more Japanese Yen for purchasing the dollar, even as the Bank of Japan aimed to maintain consumer price inflation below the 2% target level.

Forex technical weekly performance numbers (USD)

Performance Comparison Chart of $1000 investment

How much money would you make or lose last week if you were to invest $1000 in each of the sectors discussed above? 

We will pick the winning asset from each sector and compare its performance with the flagship automated trading system from Elite CurrenSea called the Portfolio Flagship. Elite CurrenSea offers a wide range of trading systems and portfolio management solutions, and Portfolio Flagship is its current bestseller. This system has been tested on real markets and is showing consistent returns. What’s more exciting is that Portfolio Flagship’s results have been verified by real results on real accounts, which we will discuss in more detail below. 

Portfolio Flagship Trading System Still Wins on Live Accounts for 31-04 Aug 2023

Portfolio Flagship is a solid performer with 1.6% gains in the past 5 days.

Let’s see the $1000 investment potential results for the past week.

As we can see, the Portfolio Flagship emerged as the top performer, showcasing impressive gains of 1.6% over the past 5 days. Following the flagship, the only other winning asset was the USDJPY currency pair with a 1.1% increase, with all other assets ending up losing money. The Portfolio Flagship system has been performing consistently well with steady profits over the past months. Every single week, while other assets are showing mixed results, the automated system shows persistent gains. 

Let’s see the $1000 investment potential results for the past week.

As we analyze the recent performance, it’s evident that Portfolio Flagship emerged as the top performer, showcasing impressive gains of 1.65% over the last 5 days. Following closely, Indices secured the second spot with a notable 1.42% rise, while investing in Forex resulted in a moderate loss of 0.4%. Moreover, commodities experienced a decline of 0.74%, and cryptocurrencies saw a slight decrease, shrinking the investment by 0.77%. The Portfolio Flagship system has been performing consistently well with steady profits over the past months. Every single week, while other assets are showing mixed results, the automated system shows persistent gains. 

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Team of Elite CurrenSea

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Risk/Reward:

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Historical Drawdown:

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Min. Deposit:

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Asset Types:

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