Week So Far
We are in the middle of the week and lots of news is brewing recently. Let's cover them together in our blog!
1- Russia - Ukraine War
Vladimir Putin announced partial military mobilisation on Wednesday morning and he said Ukraine has crossed all the lines. The Luhansk, Donetsk and Kherson regions are getting ready for the annexation referendum. They want to join Russia so they will be better protected. After this annexation Russia will accept all attacks more seriously. These developments will take time and that means no end in the war soon.
2- FED September Meeting Tonight
The US FED will announce their interest rate decision tonight and it is expected to deliver a 75 base points rate hike. Markets kind of priced this move already and we may see some rebound in the short term especially in stock markets.
3- Housing Starts in US
Real Estate Sector and Home Building Sector are suffering heavily these days. The data announced on Monday was the weakest since June 2020. Rising mortgage rates are making people shy to buy a house. As long as this trend goes on massive discounts and slowdown is inevitable. Actually this is kind of the aim of the FED. Slowdown the market and lower the inflation with discounts.
4- Government Bonds Rise
Government Bond Yields all around the world are rising. People feel the pressure of inflation and invest in different assets to hedge themselves. Another reason for this is rate hike expectations to snap higher bond yields. These rises in Bonds are creating pressure over GOLD and Silver Prices. They both test yearly lows and annual returns are in negative right now.
As you can see lots of things are happening in the market and you can benefit from this volatility. Start trading today with Gann Markets!!