Markets.com Logo
euEnglish
LoginSign Up

Stocks firmer but choppy

Jun 27, 2023
3 min read
Table of Contents
  • 1. Stocks Firm With China Support 
  • 2. Tech Pullback 
  • 3. Correction Risk 
  • 4. Inflation Nation 
  • 5. Crypto Lives 

china-support.jpg

 

Stocks Firm With China Support 

European stock markets rallied early Tuesday and the dollar gave back some ground as risk found a stronger footing. China is in accommodative mode with premier Li Qiang saying Beijing would introduce growth policies to boost demand, whilst sentiment also seemed to improve as the PBOC set a stronger-than-expected fix for the yuan. The FTSE 100 rallied about half a percent early doors to knock on the 7,500 area, whilst the DAX in Frankfurt added a similar amount to look at 15,900. 

  

Tech Pullback 

A fall in tech stocks hit Wall Street yesterday, pushing the Nasdaq down more than 1.15% and the S&P 500 down 0.45%. Tesla fell 6% as Goldman hit the stock with a downgrade, whilst some of the top-performing tech stocks like Nvidia and Meta slid 3%. There’s been a big run this year so we are in giveback mode with a lack of catalysts to encourage bulls to keep it going.   

 

Correction Risk 

Morgan Stanley’s Mike Wilson, who’s been bearish a while now, says "risks for a major correction have rarely been higher". The question is probably one of liquidity – how much gets pulled over the coming months with QT and lots of issuance. The Fed has been refilling the punchbowl with an eye on the stability of banks – this won’t last forever. There is also an argument about earnings expectations, which MS says are too high. Dealers for now look to be long gamma, ie selling tops and buying dips to keep volatility low. Treasury issuance may lead to a major drain on liquidity, which has been buoyed up by the Fed’s bank lending since the banking crisis blew up in March. The impact of the liquidity drain will depend on how much money market funds can absorb as they shift out of the Fed’s overnight reverse repo facility (RRP).   

 

Inflation Nation 

Good news on the inflation fight in the UK with shop price inflation slowing in June, notching a second monthly decline in a row. Shop price inflation fell to 8.4% in June, down from 9% in May. Canada’s CPI report is due later, whilst there is a full slate of US data incoming with durable goods, new home sales, Conference Board consumer confidence and the Richmond Fed manufacturing index.  

 

Crypto Lives 

“Crypto is far from dead,” says Bernstein analyst Gautam Chhugani. “Institutional interest has remained alive through the crypto winter and we are seeing some early news flow with the current announcements. We will continue to see continued institutional participation in new crypto products and offerings, including institutions building tokenized products on public blockchains.” Bitcoin trades above $30k this morning after running into resistance at the Apr swing high above $31k following a strong bounce last week. Regulatory moves could see it be a winner-takes-all situation? 


Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients. 

Neil Wilson
Written by
Neil Wilson
SHARE

Markets

  • Palladium - Cash

    chartpng

    --

    0.12%
  • EUR/USD

    chartpng

    --

    -0.01%
  • Cotton

    chartpng

    --

    -1.19%
  • AUD/USD

    chartpng

    --

    0.02%
  • Santander

    chartpng

    --

    1.14%
  • Apple.svg

    Apple

    chartpng

    --

    1.67%
  • easyJet

    chartpng

    --

    -0.32%
  • VIXX

    chartpng

    --

    0.32%
  • Silver

    chartpng

    --

    0.14%
Tags DirectoryView all
Table of Contents
  • 1. Stocks Firm With China Support 
  • 2. Tech Pullback 
  • 3. Correction Risk 
  • 4. Inflation Nation 
  • 5. Crypto Lives 

Related Articles

Week Ahead: RBNZ Interest Rate Decision and Canada Inflation Data in Focus

From Tuesday, 19 August 2025, key data releases include Canada’s July inflation at 12:30 GMT, expected to rise from 1.9% to 2.0% on base effects and firmer energy prices, and U.S. building permits, seen easing from 1.393 M to 1.390 M amid high borrowing costs.

Tommy Yap|in 3 days

RBA Cuts Interest Rates: Analyzing the Implications and Market Expectations

The Reserve Bank of Australia has cut its key interest rate for the third time, signaling that future decisions will be data-dependent. This article analyzes the reasons behind this decision and its potential impacts on the economy and labor market.

Liam James|1 day ago

Fed's Response to Labor Market Data Concerns: Navigating Uncertainty

This article examines how the Federal Reserve is addressing concerns about the accuracy of labor market data, especially after new appointments at the Bureau of Labor Statistics and the surrounding skepticism. It reviews alternative data sources relied upon by the Fed.

Noah Lee|1 day ago
Markets.com Logo
google playapp storeweb tradertradingView

Contact Us

support@markets.com+12845680155

Markets

  • Forex
  • Shares
  • Commodities
  • Indices
  • Crypto
  • ETFs
  • Bonds

Trading

  • Trading Tools
  • Platform
  • Web Platform
  • App
  • TradingView
  • MT4
  • MT5
  • CFD Trading
  • CFD Asset List
  • Trading Info
  • Trading Conditions
  • Trading Hours
  • Trading Calculators
  • Economic Calendar

Learn

  • News
  • Trading Basics
  • Glossary
  • Webinars
  • Traders' Clinic
  • Education Centre

About

  • Why markets.com
  • Global Offering
  • Our Group
  • Careers
  • FAQs
  • Legal Pack
  • Safety Online
  • Complaints
  • Contact Support
  • Help Centre
  • Sitemap
  • Cookie Disclosure
  • Awards and Media

Promo

  • Gold Festival
  • Crypto Trading
  • marketsClub
  • Welcome Bonus
  • Loyal Bonus
  • Referral Bonus

Partnership

  • Affiliation
  • IB

Follow us on

  • Facebook
  • Instagram
  • Twitter
  • Youtube
  • Linkedin
  • Threads
  • Tiktok

Listed on

  • 2023 Best Trading Platform Middle East - International Business Magazine
  • 2023 Best Trading Conditions Broker - Forexing.com
  • 2023 Most Trusted Forex Broker - Forexing.com
  • 2023 Most Transparent Broker - AllForexBonus.com
  • 2024 Best Broker for Beginners, United Kingdom - Global Brands Magazine
  • 2024 Best MT4 & MT5 Trading Platform Europe - Brands Review Magazine
  • 2024 Top Research and Education Resources Asia - Global Business and Finance Magazine
  • 2024 Leading CFD Broker Africa - Brands Review Magazine
  • 2024 Best Broker For Beginners LATAM - Global Business and Finance Magazine
  • 2024 Best Mobile Trading App MENA - Brands Review Magazine
  • 2024 Best Outstanding Value Brokerage MENA - Global Business and Finance Magazine
  • 2024 Best Broker for Customer Service MENA - Global Business and Finance Magazine
LegalLegal PackCookie DisclosureSafety Online

Payment
Methods

mastercardvisanetellerskrillwire transferzotapay
The markets.com/za/ site is operated by Markets South Africa (Pty) Ltd which is a regulated by the FSCA under license no. 46860 and licensed to operate as an Over The Counter Derivatives Provider (ODP) in terms of the Financial Markets Act no.19 of 2012. Markets South Africa (Pty) Ltd is located at BOUNDARY PLACE 18 RIVONIA ROAD, ILLOVO SANDTON, JOHANNESBURG, GAUTENG, 2196, South Africa. 

High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full  Risk Disclosure Statement which gives you a more detailed explanation of the risks involved.

For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data.

Markets.com operates through the following subsidiaries:

Safecap Investments Limited, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08. Safecap is incorporated in the Republic of Cyprus under company number ΗΕ186196.

Markets International Limited is registered  in the Saint Vincent and The Grenadines (“SVG”) under the revised Laws of Saint Vincent and The Grenadines 2009, with registration number  27030 BC 2023.

Close
Close

set cookie

set cookie

We use cookies to do things like offer live chat support and show you content we think you’ll be interested in. If you’re happy with the use of cookies by markets.com, click accept.