What a week we’re having in global markets! Shares, commodities, indices and currencies – it looks like everyone’s affected. So, what exactly is happening and why? Join us while we take a closer look.
First of all, there’s Facebook, that is now involved in a data breach scandal. While the long term affects remain unknown, the market already reacted and the shares decreased by as much as 12.5% in three days, impacting other tech shares.
And what happened when major tech company are volatile? That’s right – major indices are thrown into volatility – the Dow Jones, NASDAQ and S&P 500 are just some examples.
It was also reported that Apple was developing its own screen for the very first time, which could impact many suppliers. Some Asian shares were affected by the news.
The markets were also tuning in to news from the White House, suggesting President Donald Trump could soon fire special counsel Robert Mueller.
Meanwhile, in Europe, some people were pleased to learn earlier this week of a breakthrough in the post Brexit negotiations, and the reports were enough to ship the GBP into volatility.
Furthermore, it was announced that major tech giants operating in the EU could be made to pay 3% tax on gross revenues. This added to the pressure on companies like Alphabet and Twitter.
Oh, and what about gold? Can you guess what happened to it with uncertainty rising worldwide?
Today, everyone will be waiting for the Fed interest rate decision – the first one under the new Chair Powel. More than the decision itself, investors will be looking for clues regarding future hikes – will there possibly be four instead of the currently planned three?
For iFOREX traders, volatility means not juts risks, but also opportunities. Stay informed, stay alert and react before anyone else does.
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