FOREX TRADING STRATEGY AUG 28 - SERIOUS MOVEMENTS
So today we will see what's new in the global market and how we should react to it.
New player for TikTok
A new player has entered the race to buy TikTok. Microsoft, which was already in a competition with Oracle, has now partnered with Walmart to buy assets of its popular video-sharing app in the United States from China's ByteDance. Both Oracle and Microsoft, now along with their new partners, have submitted bids in a deal that could come within the week.
Along with Microsoft, Walmart will also own a stake in a new business separated from TikTok. The apps offer powerful e-commerce features alongside ByteDance's video clips in China and other countries, not yet available in the United States. Adding Walmart to the deal will allow the retail giant to fulfill that role for the US TikTok app. Microsoft and Walmart are currently collaborating on cloud apps, combined by mutual competition with Amazon.com, the company that sells the largest cloud infrastructure software, followed by Microsoft.
Federal Reserve Chairman Jerome Powell has revealed a new approach to establishing US monetary policy, which is to let inflation and employment go higher in a change that will likely keep interest rates at bay. low levels for many years to come. After a review spanning more than a year, Mr Powell said the Fed will be looking for inflation averaging 2% over time, a step that implies allowing price pressure to spike after a period of weakness. The Fed also adjusted its view of full employment to allow labor market interests to reach more workers. Mr Powell said Thursday in a speech to the traditionally held central bank's annual policy conference in Jackson Hole, Wyoming: “Maximum employment is an inclusive and inclusive goal. This change reflects our appreciation for the benefits of a strong labor market, especially for many in low- and middle-income communities.” A new strategy is being worked on to deal with years of low inflation. It gives the central bank the flexibility to allow the job market to heat up and price pressures to soar before taking action.
Market on Friday
Treasury yields soared after Jerome Powell said the Federal Reserve would maintain regulatory capabilities and switch to a more relaxed approach to inflation, while U.S. stocks hit modest gains . Asian stock futures were mixed and the dollar rose from a two-year low. Futures markets increased in Japan, little changed in Australia and Hong Kong. The S&P 500 hit an all-time high on Thursday and the Nasdaq Composite also set a record before closing in the red. The yield premium required by investors on US long-term debt versus short-term bonds rose to the most in two months after Mr. Powell commented on inflation that implied it would allow phase exceeded limit. In another development, crude oil prices fell due to the weakening of Hurricane Laura when it passed inland in the refineries and the Gulf of Mexico. Gold discount for the 4th time in 5 sessions.
Ready to recover
The Chinese economy accelerated in August as the industrial and stock market boomed, better business confidence, and home and car sales combined to boost the early economy. global first rising out of the Covid-19 recession. That is the assessment from the earliest available indicators, showing that the Chinese economy is continuing to improve. The final result for July was also better than at first, with better results from the purchasing management metrics, and stronger home and car sales at the end of the month.
That's not all that is stirring up the Chinese market: The IPO fever is driving the rate of wealth creation, with stocks rising 986%. In fact, out of the two dozen companies that started trading in China this week, at least three have produced new billionaires as of Thursday.