Fears of upcoming rate hikes causes stocks to fall on Friday

Published Tue 11 Jul 2023 01:56 by Market Analyst

Significant events to watch:

-New Zealand (NZD): Interest rate decision

-CANADA (CAD): Interest rate decision

-UK (GBP): GDP (MOM)

New Zealand (NZD): Interest rate decision – The Reserve Bank of New Zealand (RBNZ) governor decides where to set the rate after consulting senior bank staff and external advisers. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation. New Zealand’s interest rate was set at 5.50%.

The report is due Wednesday, 12 July 02:00 GMT

CANADA (CAD): Interest rate decision – Bank of Canada (BOC) governing council members come to a consensus on where to set the rate.Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation. Canada’s interest rate is set at 4.75%.

The report is due Wednesday, 12 July 14:00 GMT

UK (GBP): GDP (MOM) – Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health. The UK’s month on month GDP rose to 0.2%.

The report is due Thursday, 13 July 06:00 GMT

Risers and Fallers

-Dow Jones (-0.55%)

-Meta Inc. (-0.50%)

-Alibaba Group (+8.00%)

-XAUUSD (+0.74%)

Dow Jones – The Dow Jones declined 0.55% on Friday, and 1.56% in the last five days. Stocks took a dive on Friday as traders fear further rate hikes. The DJI is trading at 33,734.89.

Meta Inc. (NASDAQ: META) – Meta Inc. stocks declined 0.50% on Friday, reaching a daily high and low of $296.20 and $288.66, respectively. Meta launched its new app Threads last Wednesday with over 70 million users joining the platform. Meta stock is trading at $290.53 per share.

Alibaba Group Holdings (NYSE: BABA) – Alibaba stocks increased 8.00% on Friday. This rise in shares follows Chinese regulators fining Ant Group over $1 billion. BABA owns a third of the tech company. The news of the penalty caused BABA’s shares to soar. Alibaba is trading at $90.55.

XAUUSD – The price of gold increased 0.74% on Friday. It made a high of 1934.82 and a low of 1909.69. Gold is currently trading at 1924.48.

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