Dancing under the sky, as equity aligned with the stars. Markets cheered with Chinese government softening stance on regulatory crackdown and hint on more monetary support to boost the economy. The FOMC meeting ends with the expected 0.25% rate hike and majority of the participants looked forward to a progressive pace that is moderate and not too aggressive as Bullard. This gives assurance to traders on a risk-on sentiments.
⚖️Oil prices stabilizing📊
The fear of an unstoppable rise in oil prices finally paused as it started to steady amid traders cashing in on profits and new money appearing reluctant to chase for the next climb. The sell-off in oil price is partly attributed to the possibility of a cease-fire between Russia and Ukraine. Moreover, the current Covid-19 lockdown in major cities in China is expected to reduce the oil demand.
As long as diplomatic pursuit maintains momentum in Russia’s invasion, the world energy shock will calm. Traders were also seen paring their positions after holding very aggressive long bets on oil prices in the future market.
Pika World monitors any oil price shock that would derail the inflation narrative once again.
⛳️Tesla: Prices increase yet again🚖
There is little doubt that Tesla cars are getting more expensive. However, investors appear to take calm in the rise of the car prices by between 4% to 7%. It does not come as a surprise, given that Elon Musk had tweeted early in the week on seeing a firm material price increase for its components.
Pika World is hopeful that the rise in prices will not dent demand and help defend its profit margin as it rides the wave of inflationary pressure from persistent supply chain woes globally.
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