Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
News

Jobs and Central Banks

The US Federal Reserve declined to lift interest rates at this month’s meeting, explicitly adding to investor fears around a potential Brexit. Market reactions are modestly negative. Australian shares may come under additional pressure after oil fell, but a Bank of Japan rate decision and local jobs numbers may see the market change direction a number of times over the session.

US Fed Chair, Yellen stressed that July is a live meeting for the Fed, deferring rather than cancelling expectations. Coming ahead of today’s BoJ meeting, some analysts suggest this adds to the pressure on Governor Kuroda to further stimulate today. Clearly some possibility of stimulus is reflected in recent market action, and a failure to move could see disappointment selling across the Asia Pacific region.

Australian jobs are forecast to increase by 15,000 for the month of May, with unemployment steady at 5.7% on an increase in participation. However the wildly volatile nature of this data series means traders are preparing for all possibilities.

Fund managers are currently focussed on the liquidity event spawned by the expiry of the June SPI futures contract yesterday. Huge volumes are expected at today’s opening as professional investors convert some of their futures positions into stock portfolio. 


Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.