Meme stock AMC hits 4-year high!

“Wealth isn’t primarily determined by investment performance, but by investor behaviour.” - Nick Murray

 

MARKET NEWS

 

Meme stock revival captivates traders as US equities waver

 

Shares in the cinema chain AMC, which teetered on the verge of bankruptcy just months ago, surged to their highest level in four years on Thursday, as investors chased companies benefiting from the economic reopening and resurrected the “meme stock” trades of earlier this year. (FT)

 

Wall Street ekes out gain as weekly jobless claims fall

 

U.S. stocks advanced slightly on Thursday, as data showing improvement in the labor market helped bolster expectations in the economic recovery and spurred a minor rotation towards stocks seen as more likely to benefit from the rebound. (Reuters)

 

European shares hit record high on Airbus boost, Bayer hurt by Roundup ruling

 

European shares closed at a record high on Thursday boosted by Airbus after the planemaker hiked its jet output targets, while German shares weakened after shares in pharmaceuticals maker Bayer were hit by a court ruling. The pan-European STOXX 600 index rose 0.3% to 446.44 points, a record closing high. (Reuters)

 

FOREX

 

Fed reverse repo volume hits record high

 

The amount of money flowing into the U.S. Federal Reserve’s reverse repurchase (RRP) facility hit an all-time high of $485 billion on Thursday, further pressuring key short-term interest rates, which risk falling below zero.

 

The market is grappling with a glut of cash in the system mainly from Fed asset purchases and the U.S. Treasury’s financial support to the economy in response to the coronavirus pandemic. (Reuters)

 

EUR/GBP bears lapping up UK rate hike expectations, testing daily support

 

EUR/GBP is in the hand of the bears on Thursday following a strong offer in the UK bond market following higher rate expectations, in stark contrast to the earlier question as to whether UK rates would go negative. (FX Street)

 

GOLD

 

Gold price ignores another pandemic low in U.S. weekly jobless claims

 

Another week, and another new pandemic low in the U.S. labor market as fewer American workers apply for first-time unemployment benefits. However, the latest employment data is not having much impact on the gold market. June gold futures last traded at $1,896.60 an ounce, down 0.24% on the day. (KitCo)

 

CRYPTO

 

Weak PayPal Pump Leaves Market Mostly Flat With BTC at $38K, ETH $2.7K

 

Bitcoin, the world’s largest cryptocurrency by market capitalization, was up Thursday by at 0.75% as of press time. One possible explanation for the rise: PayPal executive Jose Fernandez da Ponte saying during a Wednesday Consensus 2021 panel that the payments firm will allow its crypto users to move balances to different wallets. (CoinDesk)

 

MORE HEADLINES

 

•    White House to propose US budget worth $6tn over a decade
•    Russell 2000 small-cap index aims for the longest monthly win streak since 1995
•    Gap surprises Wall Street with quarterly profit as activewear, summer fashions carry the day
•    Dutch court rules oil giant Shell must cut carbon emissions by 45% by 2030 in landmark case
•    Fed to hold Jackson Hole symposium in person, after COVID hiatus

 

ANALYSIS

 

Ultimate gold price target is $5,000-$10,000, says Guggenheim's Scott Minerd

 

"As money leaves crypto and people are still looking for inflation hedges, gold and silver are going to be much better places to go," Minerd told CNBC in an interview. It will take some time due to the sheer size of the gold market, but the precious metal will enter an "exponential phase," Minerd said. 

 

The ultimate price target for gold is between $5,000 and $10,000 an ounce, he added. "This is ultimately is in the cards.

 

CHART

 

GBP/USD – Daily Candlesticks

 

  
Source: GKFX Prime Metatrader 4 

 

GBP/USD has made a bullish engulfing candlestick pattern that is extra noteworthy for engulfing the bodies of the last several daily candles. - Prepared by Trading Writers*

 

CALENDAR

 

*Times in GMT

 

 
Source: FX Street Economic Calendar