FTSE 100 Trading forecasts and signals

USDJPY: dollar weakening has strengthened the yenThe Japanese currency, influenced by the general market trend, has strengthened against the American currency, allowing the USDJPY to hold at 134.45.The Japanese stock market is closed today because of the Children's Day and the Green Day holiday, so traders will return to the market only on Monday. On the eve of the weekend, the national regulator's quarterly report came out. Besides, Kazuo Ueda, the head of the central bank, said the previous day that labor remuneration in the country will grow considerably this year. The governor confirmed that Q1 2023 wage growth of 3.0% over last year's 1.9% is just the first steps and the dynamics will only increase in the future. Ueda said he hoped that investors and the public will have more confidence in monetary policy approved by the regulator, which will give the yen a positive momentum on global trading floors.Meanwhile, the U.S. currency updated monthly lows, falling to 100.800 on the USD Index following a meeting of U.S. Federal Reserve officials on monetary policy, after which the interest rate rose 0.25 percent to a target of 5.25 percent. The outlook for the Fed's further inflation response plan left investors disappointed. For example, Federal Reserve Chairman Jerome Powell would not comment further on the regulator's future actions to adjust the interest rate, but the official expressed confidence, the cycle of monetary tightening is nearing completion.Support levels: 133.10, 130.40.Resistance levels: 135.90 and 138.00.NZDUSD: the national labor market has strengthened the New Zealand currencyThe downward trend in the U.S. dollar gives the NZD/USD pair an opportunity to strengthen its positions, against the background of which the asset reached the level of 0.6248.The day before the New Zealand dollar got an additional support from the employment market statistics, which showed that the unemployment rate for Q1 remained at 3.4%, having beaten the experts estimates of 3.5%. The value stabilized thanks to a 0.8% gain in employment, well above the 0.2% for Q4 in 2022. Economic activity rose in the share to 72.0% from 71.7% in the past. This kind of economic backdrop gives the New Zealand dollar a high prospect of breaking March's peak.Resistance levels: 0.6290 and 0.6380.Support levels: 0.6190, 0.6090.Crude Oil market analysisNorth American light crude oil WTI is developing a downtrend in the area of 69.17.The correction was intensified after Turkey discovered a new field in the middle of the Gabar mountains, near the city of Jizra. Thus, the head of the national Turkish pipeline conglomerate noted that the approximate volume of raw materials of the new field exceeds 1.0 billion barrels, or 70.0 billion dollars in cash equivalent, with the ability to develop the production capacity to 100.0 thousand barrels per day, which allows calling it the largest on a national scale. Hydrocarbon production will focus primarily on foreign markets, which will make a significant adjustment to the balance of the market, because so far the Republic of Turkey has been increasing the volume of imported "black gold".Resistance levels: 71.70, 80.70.Support levels: 66.50, 60.00.FTSE 100 analysisThe key index of the London stock market FTSE 100 is showing a corrective dynamic at 7756.0. The United Kingdom stock exchange slightly decreased the growth dynamics due to ambiguous company reports and stabilization in the bond market.The day before the biggest Danish energy giant Ørsted A/S had released financial statistics according to which its revenue amounted to DKK 29.37 billion, largely exceeding analysts' expectations of DKK 18.48 billion. There was also a significant increase in earnings at the updated share price, which now stands at 4.6 kroner to last quarter's loss of 0.78 kroner.In turn, investors assessed the reporting of the largest banking institution in the Kingdom Banking Group Plc. which recorded a decline in revenue to 4.81 billion pounds to 5.0 billion in the previous quarter. Meanwhile, earnings reached £0.0331, beating analysts' estimates of £0.0212 and the previous £0.0227 for the previous quarter.Support levels: 7650.0, 7420.0.Resistance levels: 7860.0, ...

EUR/USD: the bearish trend has intensified in the pairThe single currency of the EU has weakened significantly, as part of the development of the downward dynamics formed the day before, and is trying to gain a foothold below the psychological mark of 1.0000, updating the minimum of the last two decades.Earlier, the European regulator stated that the course of tightening monetary policy will continue despite the high risks of a recession in the first economy of Europe – Germany, already in the coming winter. The cost of energy carriers also acts as an additional "anchor" that has every reason to provoke a full-scale energy crisis. Thus, representatives of Gazprom PJSC, which acts as a key supplier of "blue fuel" from the Russian Federation to the European markets, announced a week earlier preventive work that will last for three days, due to which the supply of gas to the EU countries will be stopped.Resistance levels: 0.9950, 1.0000, 1.0050, 1.0100.Support levels: 0.9900, 0.9850, 0.9800, 0.9750.Cryptocurrency Market OverviewAccording to information from trading platforms, last week ETH ended in the "red" zone, being influenced by the global negative background in the electronic asset market, reaching the level of 1520.00.Analysts note that the world's second most popular cryptocurrency has lost ground due to a serious decline in BTC, allowing the "bears" to seize the initiative on all major altcoins. In the short term, the asset will trade within the framework of multidirectional fluctuations in value, remaining under the influence of uncertain trends. Thus, market participants took a wait-and-see attitude, waiting for comments from the chairman of the US regulator Jerome Powell, in which further steps to tighten monetary parameters may be announced, and even an acceleration in the growth rate of the key indicator, because the consumer price index in the US, even though it showed a decline to 8.5%, is nevertheless far from the target level. The asset is supported by investors' expectations of launching the Ethereum network for new PoS (Proof-of-Stake) algorithms. The modification is scheduled for September 15-16, and in the present, the development team is working on the security of smart contacts.Resistance levels: 1750.00, 1895.00, 2030.00.Support levels: 1500.00, 1375.00, 1250.00.FTSE 100 Index OverviewThe main stock indicator of the FTSE 100 London Stock Exchange is moving within the framework of a local correction, testing the 7510.0 mark.Experts note the key publication for the UK Stock Exchange of the current week of business activity among various economic sectors. According to preliminary estimates of economists, the indicators continued to slow down, which will lead to a negative trend in the long term. The index of business activity in the manufacturing sector decreased from 52.1 points to 46.0 points, the same indicator in the services segment was adjusted from the previous 52.6 points to 52.5 points. The corporate segment was marked by a key event under the sale agreement by the telecommunications giant Vodafone Group Plc. own division in Hungary. The deal was estimated at $ 1.78 billion, which, according to some economists, is very underestimated.Support levels: 7456.0, 7200.0.Resistance levels: 7558.0, 7693.0.Oil Market OverviewDuring the Asian trading session, Brent black gold demonstrates a multidirectional movement of quotations, reaching the level of 96.50.Earlier, oil was rapidly losing ground, but by the end of trading, the asset made a successful attempt to recover losses, due to the fear of market participants regarding the onset of a crisis in the global economy. The new trading week gave the US dollar an opportunity to moderately adjust positions and move away from the local peak reached by some competitors. Meanwhile, the instrument is under pressure from confirmed information about the strengthening of its positions by Brazil and the United States in Asian countries for the supply of raw materials to their markets. With a significant probability of a further reduction in oil supplies from the Russian Federation against the background of the tough policy of EU economic sanctions, the alternative in energy supplies is becoming an increasingly important topic.Resistance levels: 97.21, 100.00, 102.57, 106.00.Support levels: 93.34, 91.00, 88.79, ...

As of 11.43 Moscow time, the DAX and CAC 40 indices rose by 1.36% and 1.72%, respectively. The FTSE index rose 0.87%. The main European Stoxx Europe 600 index showed an increase of 1.1%. The leaders in the growth rate of the share price among the companies included in this index were operators engaged in food delivery. The reason for the positive on the European stock exchanges was the negotiations between the Russian Federation and Ukraine, which are taking place in Turkey. Investors hope that the participants of this meeting will be able to agree on the cessation of hostilities and the consolidation of the neutral status of Ukraine. Experts note that the military operation in this country, conducted by Russia, has caused increased volatility in the markets. In addition, it hinders the recovery of the global economy. In March, consumer confidence in the economy deteriorated in European countries amid rapidly rising inflation and fears of serious consequences of the geopolitical conflict. Indices assessing consumer confidence in Germany and France showed a significant ...

A study conducted by the American media holding S&P Global and the British institute CIPS showed that in the manufacturing sector of the UK in March there was a weakening of business activity. This was indicated by a specially calculated PMI index, which amounted to 55.5 points. In the previous month, its value was fixed at 58 points. Economists' forecast suggested a less sharp drop in the index - to 56.7 points. Nevertheless, the manufacturing PMI remained in the zone exceeding the neutral level of 50 points, which indicates an expansion of activity. At the same time, the situation in the service sector has improved. The corresponding index rose this month to 61 points from 60.5 points. Its value was better than the market estimates of 58 points. The results of the study indicate a continued increase in activity in the country, even in the face of the negative impact of Russia's military invasion of Ukraine and increasing inflationary pressure. At the same time, expectations in British business circles regarding the economic prospects have worsened, which is due to problems in supply chains, which may worsen even more in connection with the war unleashed by the Russian Federation against ...

The National Bureau of Statistics of Great Britain reported an acceleration of inflation in the country. By the end of February, it rose by 0.7 percentage points compared to the January level of the indicator and amounted to 6.2% year-on-year. Such a high rate of consumer price growth has not been observed in the UK over the past 30 years. On a monthly basis, February inflation was 0.8%. At the same time, in January, prices decreased by 0.1% compared to December. Both indicators exceeded the forecast of the surveyed analysts. They expected that in relation to the prices of a year ago, inflation in February would be 5.9%, and in relation to the previous month – 0.6%. Inflation, which takes into account the cost of British people to maintain their homes, also accelerated last month. On an annualized basis, it was 5.5% versus 4.9% a month earlier. Compared to January, prices increased by 0.7%. Accelerated inflation growth is observed in many countries of the world against the background of rising energy prices and problems in the supply ...

Пара GBP/USD растет после оптимистичных данных по занятостиФунт торгуется с повышением после обнадеживающих данных по занятости в Великобритании, восстановившись со вчерашнего минимума 1,30. Уровень безработицы снизился до 3,9% за 3 месяца до января по сравнению с 4,1% и превысил прогнозы в 4%. Безработица в настоящее время находится ниже уровня, существовавшего до пандемии, что подчеркивает напряженность на рынке труда.Количество заявителей сократилось еще на 48,1 тыс. в феврале после падения на 31 тыс. в январе. Средний заработок, включая бонусы, вырос на 4,8% в годовом исчислении, что усилило инфляционное давление и усилило давление на Банк Англии с целью повторного повышения процентных ставок.Доллар США падает по всем направлениям, так как доходность казначейских облигаций США снизилась, а инвесторы ожидают данных по инфляции ИЦП в США и завтрашнего объявления ставки ФРС.Ожидается, что индекс потребительских цен вырастет до 8,7% в годовом исчислении в феврале по сравнению с 8,3%.Где дальше будет курс GBP/USD?Пара GBP/USD вчера нашла поддержку на критическом уровне 1.30 и отскочила примерно до уровня закрытия пятницы 1.3030.График по-прежнему медвежий, так как цена торгуется ниже своих 50 и 100 SMA на 4-часовом графике, а RSI остается ниже 50, что говорит о том, что впереди может быть еще один спад, который находится вне зоны перепроданности.Продавцам потребуется пробить уровень 1.30, чтобы спровоцировать более глубокую распродажу к круглому числу 1.29 и 1.2820, минимуму ноября 2020 года.Между тем, покупатели ожидают движения выше 1.3080, минимума 8 марта, чтобы выставить 50 sma на 1.3160 и максимум прошлой недели 1.32.Индекс FTSE падает по мере того, как Китай блокирует все больше городовИндекс FTSE и его европейские аналоги движутся к отрицательному открытию, отслеживая слабость в Азии в одночасье.Китайские данные были оптимистичными: промышленное производство выросло на 7,5%, а розничные продажи подскочили на 6,7%.Однако опасения по поводу роста числа случаев заболевания COVID и усиления ограничений на изоляцию во второй по величине экономике мира негативно сказываются на настроениях к риску и снижают цены на сырьевые товары по всем направлениям.Нефть торгуется еще на 5% ниже, так что основные нефтяные компании, скорее всего, окажутся под давлением. Неблагородные металлы также страдают, поскольку в Китае, крупнейшем в мире потребителе металлов, 45 миллионов жителей заблокированы.Мирные переговоры между Россией и Украиной также находятся в центре внимания и могут повлиять на настроения по поводу рисков в течение всей сессии.Где дальше будет курс FTSE?Вчера индекс FTSE столкнулся с сопротивлением на уровне 7225, уровне, который несколько раз оказывал поддержку и сопротивление в течение прошлого года. Продавцы вновь вышли на рынок здесь и снизили индекс до ключевого психологического уровня 7000.RSI поддерживает дальнейшее снижение, пока он остается вне зоны перепроданности. Продавцы захотят увидеть прорыв ниже 7000, чтобы открыть дверь к 6950 перед 6820.Покупатели будут искать движение выше 7225, чтобы выставить 100 sma на 7350 и 7400, максимуме ...

Yesterday, the yields of ten-year US Treasury securities fell by 10.1 bps and closed at 1.34% per annum. During the week, the yields of American treasuries decreased by 13 bps, today the yields of treasury ten-year securities have been growing since the opening and are at the level of 1.39%. US stock indexes declined on Friday – the S&P500 lost 0.84%, the Dow Jones industrial index fell 0.17%, the NASDAQ technology index fell 1.74%.Western markets declined last week, despite a positive start: all major US and European indices closed in the red, with the exception of the British FTSE 100, which added 1.11% by the end of the week. Investors are revising their forecasts due to the deteriorating epidemiological situation in the world, as well as the prospects of an early tightening of monetary policy in the United States. The reason for this was the "hawkish" statements by the head of the US Federal Reserve Jerome Powell at the beginning of last week about the "non-temporary" nature of inflation, as well as subsequent statements and comments by representatives of the US Federal Reserve, characterized by sharply tightened rhetoric. So, on Friday, the president of the St. Louis Federal Reserve, James Ballard, who will become a voting member of the FOMC in 2022, noted that record inflation and the achieved pace of economic recovery require the monetary authorities to abandon the stimulus program, because the possibility of a more rapid curtailment of the quantitative easing program will be considered at the next meetings.Macro statistics in the US actually indicate a moderate economic recovery: The country's GDP has already exceeded the peak reached before the outbreak of the pandemic, and the unemployment rate continues to decline. So, Friday's official data on the unemployment rate turned out to be better than expected (4.2% against the forecast of 4.5%), and the November ISM index of business activity in the US services sector also turned out to be higher than forecast - 69.1 points against the expected 65.0, which, coupled with the positive dynamics of the index of business activity in the manufacturing sector (PMI), released earlier, indicates an increase in confidence and business activity.The past week was also eventful for the oil market. The growth of oil product stocks in the United States, a slight decline in crude oil reserves, uncertainty in the market caused by the new strain of the coronavirus "omicron", as well as the decision of OPEC+ to continue to increase production by 400 thousand barrels. in a month, oil quotes were forced to decline significantly. At the moment, the quotes went below the level of $ 66 / bbl, but by the end of the week they corrected closer to the level of $ 70 per barrel. February Brent crude futures opened today with growth and is trading at $71.58/bbl. We believe that the further dynamics of quotations will continue to be determined by the epidemiological situation, since there is still no unambiguous assessment of the impact of the omicron strain on the healthcare system of countries and the economy as a whole, but at the moment the level is $ 80/bbl. it is a limitation of the strengthening of oil quotes.As a result, it can be noted that the upcoming December meeting of the American regulator, which will be held on December 15, as well as the news background around the new strain of coronavirus, will serve as the main determinants of sentiment in both the stock and commodity markets. In addition, in the coming week, the focus will be on November inflation data in the United States, as well as statements by representatives of the ...

Yesterday, the yields of ten-year US Treasury securities rose by about 4 bps to 1.67% per annum. Today they are declining and are about 1.64% per annum. US stock indexes closed mixed yesterday – the S&P500 rose 0.17%, the Dow Jones added 0.55%, and the NASDAQ lost 0.50%.On Tuesday, the US and EU published November business activity indices from Markit. In the EU, both the PMI and the index for the service sector unexpectedly moved to growth. Nevertheless, the components of the indices indicated a record increase in both costs and selling prices, which indicates an increasing price pressure. The data on the November Markit PMI indices in the US turned out to be slightly worse – the manufacturing index rose by 0.7 p to 59.1 p, fully coinciding with the Bloomberg consensus forecast, but the index for the services sector fell by 1.7 p to 57.0 p. against the expected growth to 59 p . Despite recent reports of a certain improvement in the situation on the supply side, the PMI indices indicated an increase in costs to new highs. As a result, against the background of high demand, manufacturers continued to shift costs to consumers, and the component of selling prices remained at record levels last month. Yesterday's data increased the likelihood of further acceleration of inflation in the United States, which increased market fears of an imminent tightening of monetary policy.Today promises to be a busy day - tomorrow is Thanksgiving Day in the United States, in connection with which most of the events were postponed to Wednesday. In particular, October data on durable goods orders, the Core PCE price index, which the Fed uses when making decisions, as well as weekly statistics on the number of applications for unemployment benefits will be published in the United States today. Wednesday will be marked by the publication of the minutes of the last Fed meeting, which, however, is unlikely to significantly surprise the market. Probably, the "minutes" will be devoted to the process of winding down the asset purchase program, and more important issues for the market with the timing of the rate increase will not be disclosed. Now the latest data for November will be more fundamental for the prospects of the PREP – next week the market will evaluate labor statistics, and a week later inflation data will be released.Yesterday, as reported, it was announced the beginning of the sale of oil from the reserves of the United States and a number of other countries. However, after such news, oil quotes moved to growth, and Brent crude futures immediately rose by 3.3% to $82.31/bbl at the end of the day. Probably, investors were afraid of more significant volumes of additional oil supply than was announced yesterday (70-80 million barrels. for several months). Today, Brent futures are growing by 0.10% and are trading around $82.4/bbl. The positive oil market is not added by the data published yesterday on stocks in the United States for the week from the American Petroleum Institute (API). Thus, they indicated an increase in oil reserves by 2.31 million barrels, while they were expected to decrease by 0.95 million barrels. Today, the market will evaluate official data from the US Department of Energy - if they also show an increase in reserves, then oil quotes may return to decline. Further dynamics in the oil market will largely depend on OPEC+ plans, but for now Brent futures have the potential to gain a foothold above ...

To date, there are more than 200 stock exchanges with various levels of capitalization around the world. The activities of such financial institutions have an impact on the intensity of the economic processes of the entire market. In particular, the stock exchange provides optimal conditions for the turnover of securities and acts as a price regulator for them.The oldest trading platform is considered to be the Frankfurt Stock Exchange. Its foundation was timed to coincide with the annual fair in 1585. By that time, Frankfurt had become a real economic center of Germany, where traders from almost all countries of the world flocked. The abundance of various banknotes provoked financial difficulties when concluding transactions. To solve this problem, the stock exchange was created. With its help, it was possible to create a single payment system and develop a fixed exchange rate.World stock exchanges and features of their functioningDespite the large number of financial regulators operating in all countries of the world, only a few of them have preserved and increased the power of their economic potential. Their capitalization level exceeds $ 1 trillion and accounts for 87% of the total market of the whole world. The rating of the world's largest exchanges is based on stock indices and data on the total turnover of trades. Today it looks like this.New York Stock Exchange (NYSE)It was created in 1792 as a result of an agreement of a group of American entrepreneurs. Shares of more than 3 thousand of the largest companies around the world are listed on its site. To successfully complete the listing, an investor needs to have an average annual income of $2.7 million. The Dow Jones index, as well as the NYSE Composite and NYSE ARCA Tech 100 Index are calculated based on the indicators of industrial companies' shares on the stock exchange.Read more: What is the New York Stock Exchange (NYSE)NASDAQIt began its work in the 1970s as an automated quotation system. Today, more than 4,000 companies, mainly related to the IT sector, are represented in the listing of the exchange. A number of trading indices are calculated on the exchange, each of which is associated with a specific economic sector. The NASDAQ Composite and NASDAQ National Market Composite index are consolidated.London Stock Exchange (LSE)The official date of its opening is considered to be 1801, although this financial institution began to function since 1570 under the leadership of the royal adviser Thomas Gresham. By its structure, the London Stock Exchange is a joint-stock company that sells its own shares on the market. It accounts for about 50% of the turnover of all securities in the world. The exchange works not only with large companies, but also with aspiring entrepreneurs, to whom it provides loyal conditions. The composite index is FTSE.Tokyo Stock Exchange (TSE)It first appeared on the Japanese financial market in 1878. In terms of capitalization, it is currently in second place after the New York Stock Exchange. The largest companies of the Asian and European regions place their securities on its platform. The main index families are NIKKEI 225 and TOPIX (Tokyo Stock Price Index).Read more: About NASDAQ Stock ExchangeShanghai Stock Exchange (SSE)China's largest exchange is considered a non-profit organization and is under the patronage of the government Securities Commission. Based on the results of trading, the SSE Composite index is calculated, which reflects the state of the shares of all companies that are listed on the exchange.Hong Kong Stock Exchange (HKSE)It has securities of one and a half thousand large issuers from Asia and Europe. Capitalization is at the level of $ 2.9 trillion, and according to this indicator, HKSE ranks sixth in the ranking of the world's major exchanges. The Hang Seng index represents the weighted average value of the shares of the 34 largest companies of the exchange.EuronextIt has its own branches in the Netherlands, Portugal, Belgium and France. In addition to securities trading, it provides clearing services and analytical information on the market. Its total capitalization is 2.9 trillion dollars. The list of indices calculated during trading includes: Euronext 100, AEX index, BEL20 and CAC 40.Read more: IPO of a company - mechanism, examples & strategiesToronto Stock Exchange (TSX)It first appeared on the financial market of North America in 1878. The Canadian dollar is used as the main currency. The S&P/TSX trading index reflects the condition of 200 companies whose financial weight is at least 0.05% of the total capitalization.Shenzhen Stock Exchange (SZSE)It is a member of the United Union of exchanges of Asia and Oceania. Shares on the stock exchange are divided into two types: for residents and for foreigners. In 2016, free access to securities was opened for all investors, and a cross-trading system became available. The SZSE Component Index allows you to track the growth dynamics of the most liquid shares of 40 companies that are listed on the stock exchange at the current time.Frankfurt Stock Exchange (FWB)It has held a leading position on the German stock market since 1949. The main indicator of the DAX index reflects the value of securities of the 30 largest German companies and the state of the German economy as a whole.Bombay Stock Exchange (BSE)It is considered the oldest stock exchange not only in India, but also in the entire Asian region. It was founded by the British during the colonization of the country. At first, the auction was held in front of the city hall building under huge banyan trees, then a separate building was built for this purpose. Today, its capitalization level exceeds $ 1 trillion, which makes it possible to leave behind all potential competitors in the region. The main stock index is BSE.Read more: What is an IPO: how the company goes on the stock exchangeNational Stock Exchange of India (NSE)It was opened in Mumbai on the recommendation of the Government of the country. The exchange organizes trades on the stock market, debt obligations and production instruments. The exchange's listing includes more than 1,600 of the largest companies in the region. The Indian rupee is used as the settlement currency.Swiss ExchangeThe trading platform started functioning in 1995 after the merger of the Zurich, Geneva and Basel exchanges. Today, all trades are conducted only in electronic form. Based on the SMI Index, a conclusion is made about the state of the 20 largest companies, the aggregate share of whose securities accounts for 85% of all exchange trades.Australian Stock Exchange (ASX)The main stock and futures exchange in the region. The activities of this financial regulator are controlled by the State Commission on Investments and Securities. The main financial index of the S&P/ASX 200 consists of the value of securities of 200 names of blue chips.Read more: The DAX index – history of its creation, structure and featuresKorean Stock Exchange (KRX)It is among the leaders in terms of trading volume with derivatives. The total capitalization is $ 1.2 trillion. It was formed as a result of the merger of KOSDAQ and the Korean Futures Exchange. The headquarters is located in Busan. The main index is KOSPI.NASDAQ NordicIt is a group of subsidiaries of NASDAQ Inc., which manage the stock markets of the Baltic States, the Caucasus and Northern Europe. The headquarters is located in Stockholm. 564 largest regional companies are represented in the listing of the exchange.Johannesburg Stock Exchange (JSE)The largest trading platform on the African continent. She started working in 1887 with securities of gold mining companies. Bidding is conducted "by voice" with subsequent offsetting through an automated system. The exchange gives preference to mining sector stocks. The main calculated index is FTSE/JSE.Read more: S&P 500 Stock Index - history, calculation and forecastingMadrid Stock Exchange (BM)Various exchange instruments are traded on this platform. In terms of capitalization, it is considered the largest stock exchange in Spain, far ahead of regional offices in Barcelona, Valencia and Bilbao. IBEX 35 is the base index of the exchange.Taiwan Stock Exchange (TWSE)It is located in the capital of Taiwan - Taipei. Transactions on securities of mainly regional companies are carried out on this trading platform. The total capitalization level is 0.8 trillion dollars. Based on the results of trading, the overall TAIEX financial stability index is calculated.Sao Paulo Stock Exchange (BM&F)It was formed as a result of the merger of the Brazilian Trading and Futures exchanges. The total value of transactions made on the trading floor per day exceeds $1 trillion. The main Ibovespa calculation index includes the value of securities of the largest companies that participate in the auction.Mexican Stock Exchange (BMV)The exchange began its work in 1908. The headquarters is located in Mexico City. Since 1999, all transactions have been concluded electronically. The IPC index includes the value of securities of the 36 largest issuers that are listed on the exchange.Read more: Nikkei 225 Index - history, calculation and the featuresMoscow Stock Exchange (MOEX)The holding was formed in 2011 after the merger of RTS and MICEX. Currency, securities, derivatives, precious metals and grain trading transactions are concluded on the exchange. In addition, the Moscow Exchange carries out clearing and depository activities. The Moscow Exchange indices are among the key indicators of the state of the Russian economy. Based on the results of trading, the Moscow Exchange Index is determined (calculated in rubles) and the RTS (calculated in US dollars).Italian Stock Exchange (ISE)It was founded in 1808, in 1998 it became a joint stock company, and in 2007 it merged with the London Stock Exchange. The trading platform is located in Milan. The FTSE MIB index is calculated based on the value of the shares of the 40 largest companies, the list of which is regularly reviewed and updated.Helsinki Stock Exchange (HEX)It began its work in 1908. Since 1980, the transaction system has become fully automated. Shares and derivatives of large corporations, including Nokia, Finnair and Tikkurila, are traded on the exchange. The main stock index is OMX Helsinki 25.Read more: Index NASDAQ 100 - history, advantages and what it depends ...

Indices for the investorNews reports often inform us about the growth and fall of stock market indices. Obviously, this is important, since it gets into prime-time news. However, what should this mean to the ordinary man in the street?Reference books tell us that "An index is a derived quantity ..." and behind the jumble of words they do not always give us an idea of the essence. School memories about "dividing something into something" generally set the right vector for reflection, but here it is critically important to understand what to divide into what and why. So, let's figure it out.Read more: Index NASDAQ 100 - history, advantages and what it depends onWhat is a stock market index in the financial world?Let's start from the beginning and consider the very first index that appeared in the world: this is the soaring Dow Jones Index. Its first version appeared back in 1884, and this index still exists today. The emergence of such a tool was associated with the need to assess the dynamics of industrial development in the United States. It was necessary to find some indicator that would help to assess whether production is growing or falling. How did you solve this problem?It's very simple: we took 12 of the largest industrial companies in the United States and calculated the average stock price for all. Then they did the same after some time. And again. And now several control points have already appeared and a graph has been built out of them, from which the trend was visible: in general, the prices of shares of the largest companies are growing or not. Since the growth of the share price is an indicator of investors' confidence in the industry, their desire to invest in it (and this is an opportunity for the industry itself to develop due to the inflow of investments), these calculations have become the main measure of industrial development. Therefore, the growth of the index means the development of the entire industrial sector, and the fall, respectively, indicates a crisis. The evaluation method proved to be viable, received the name of the authors-developers, and since 1896 the Dow Jones Index has been officially published.A lot has changed since then, including in the Dow Jones Index itself. There are Indices for different industries, for the economies of entire countries. And the indices themselves are now a little less straightforward - all sorts of correction factors are applied, dividends and a number of other factors are taken into account. However, the following principle remained unchanged: the index shows the average temperature of the development of an industry or a country.An interesting fact: from the very first version of the Dow Jones Index to the present day, General Electric was part of it.Read more: Nikkei 225 Index - history, calculation and the featuresThe Dow Jones index today is an indicator of the health of the US economy. It is calculated based on the value of the shares of the 30 largest companies. Another important index for assessing the US economy is the S&P 500, it is called the barometer of the American economy. It is calculated for 500 American companies that have the highest market price (capitalization).For Germany, the same index is DAX, for Japan - Nikkei 225. There are Indices for industries - for example, for energy, telecommunications, metals - they, in turn, show in the same way whether the industry is developing, stagnating or even in decline.Indices are the investor's loyal friendsFirstly, from the point of view of investments in the index itself: today there are tools in the financial system that allow you to earn on the growth of indices. And the indices are unique in this quality - they are always growing in the historical perspective. This is logical: civilization is developing, humanity is getting more and more benefits, and the index only reflects this process.And secondly, Indices help us evaluate the industry or economy of the country in which we want to invest in a security. The dynamics of the development of the industry or economy reflected in the index will help you assess the potential of a particular security: does it have the possibility of growth relative to the "average temperature" or is it worth waiting for a decline in quotations rather.Summing up, we note the main thing: indices are indicators of the development of industries and entire economies. Both governments and ordinary investors are guided by them. Therefore, when making a trading decision to purchase a particular security, it makes sense to look at the indices in order to assess the overall economic situation and understand the potential of the stock.Read more: S&P500 ...

Making a profit from financial instruments in the short, medium or long term is the main goal of any investor. Beginners prefer to use stocks and bonds, and we are usually talking about the direct purchase/sale of assets.But experienced traders often work with derivatives, the type of which is chosen based on the goals and skills of the investor. With the right approach, they allow you to make good money, with an inept one, serious monetary losses are likely.What are derivatives?Types of derivativesFuturesForwardOptionSwapFunctions of derivativesHow and where to trade derivativesChoosing a broker and opening a trading accountChoosing a derivativeAnalysis of the market situationPurchase of a contractWhat are derivatives?A derivative (derivative financial instruments) is a type of contractual contract that obliges the transaction partners to perform certain actions with the underlying asset in the future. Most often, this is the delivery of goods to a specific date at a given price on terms that do not depend on price fluctuations in the markets.The conditions prescribed in the derivatives contracts are called the specification. Holders have the right to sell the acquired derivatives, and their issuers are not always the owners of the underlying assets.Read more: Issuer of securities: definition, types and featuresDerivatives do not exist by themselves. These are derivative financial instruments that are inextricably linked to the value of the underlying assets, and there may be more than one of them.At the same time, the following can act as a base:Securities (Shares, ADRs, GDRs, etc.);Currencies (EUR/USD, GBP/USD, etc);Stock indexes (S&P500, Dow, NASDAQ, FTSE100, etc.);Commodities (metals, energy carriers, agricultural products, etc.);Macroeconomic and statistical indicators (key refinancing rate, inflation, weather, etc.).The derivatives futures market operates on the same principles as the securities and commodity exchanges. Pricing in this industry follows similar principles. At the same time, the total number of contracts presented on the market and the number of underlying assets are often not related in any way.Derivatives are a rapidly developing sector of today's financial system. According to the most conservative estimates, the volume of this market is $845 trillion. (the volume of world GDP is $86.6 trillion). A number of experts claim that the volume of the derivatives market reaches $2 quadrn.The first analogues of modern derivatives originated among Babylonian merchants. In Japan in the 17th century, rice coupons became widespread, and in the UK and Holland — options for flower bulbs. The first modern derivatives were launched on the London Stock Exchange in the 1860s. And they were actively distributed in the 20s of the XX century.Types of derivativesAll derivatives (derivative financial instruments) are divided into those that are traded freely (contracts of a standardized type on exchange platforms), and contractual (agreements in the OTC sector). Let's look at the most popular types of them.Read more: What is OTC and what are its featuresFuturesFutures contracts imply delivery on a specific date of the selected underlying asset at a given price. In fact, this is a contract of sale with deferred execution. There are futures:Settlement - without the physical movement of the goods or the change of the owner of the securities, the monetary settlement takes place on the day of the expiration date;Delivery - the goods are shipped directly within the specified time.Example: by buying oil futures, you can count on the delivery of the number of barrels specified in the specification by the deadline specified in the contract. But when buying index futures, only monetary settlement is possible, there is no physical commodity.Read more: What are futures: types, features, advantages and risksForwardForward contracts are concluded in the over-the-counter sector. They imply the delivery of the underlying asset at a given price by a specific date. Unlike standardized futures, they allow you to set additional conditions (quality, packaging, etc.), that is, there is still an opportunity for business maneuvers.Example: a large industrial production requires rolled metal after 5 months. According to analysts' forecasts, rental prices are expected to rise in the near future. At the moment, there are no free funds, as well as the desire to bear increased storage costs. The buyer and the supplier conclude a contract at the current price with the supply of products in the future with the payment of warranty security.Read more: Bulls and bears, as well as other animals on the stock exchangeAn example of a forward at the household level is drawing up a contract for the purchase and sale of an apartment in a house under construction or a car in a car dealership (if it is not in stock).OptionThe purchase of an option gives the right to buy or sell an asset in a given time period at a specified price. The first option is called call, the second-put. It is not necessary to execute the contract if the conditions are unfavorable for the owner (the projected price of the asset has gone in the wrong direction). It is acceptable to simply fix a loss in the amount of the option value.Example: on the stock exchange, a company's share is traded at a price of 50 dollars. The trader, having analyzed the market situation, revealed the probability of growth up to 65 dollars. He acquires a call option with the right to purchase a security at 50 dollars. with a guaranteed security of 10% (5 dollars.). When the desired price is reached within the specified period, the trader executes the option. And sells a share on the stock market already at the market price. If the forecast is not justified, it is permissible to resell the option cheaper or not to execute it, fixing a loss of 5 dollars.SwapA complex version of a futures contract, works on the principle of "2 in 1". A transaction is concluded for the purchase or sale of an asset with the simultaneous opening of a counter-directional transaction with the same asset on similar terms, but after a certain period. The main goals of using swaps are to increase the number of assets and reduce risks (hedging). The most common types of swaps are currency, commodity, credit, interest, stocks and precious metals.Read more: Swaps in the financial market. What are they and what are they given to the traderIn addition to these types of derivatives, there are other, less popular types — warrants, PCI, FRA, depositary receipts. There are also derivatives for derivatives, but investors are wary of such an instrument.Functions of derivativesDerivatives are acquired not only in order to become the owner of the underlying asset. Their functions are more diverse:Risk hedging (protection against sharp price and exchange rate fluctuations);Price arbitrage (conclusion of multidirectional transactions in several markets in order to make a profit);Tax optimization, for example, when using a stock swap, you will not have to pay a tax related to capital gains;Speculation on the price fluctuations of an asset;Reducing transaction costs;Expansion of earning opportunities through increased leverage (X100).Read more: Leverage on the stock marketHow and where to trade derivativesHow to trade derivatives:Choosing a broker.Opening a trading account and depositing funds.Choosing the type of derivative.Market analysis.Purchase of a contract.Working with futures contracts and options is similar. But there is one serious difference. Futures obliges to fulfill the conditions regardless of how the market situation develops for the owner. The option leaves the right to choose.As for the places where you can trade derivatives, ordinary investors are mainly available on exchanges where less than 20% of this type of assets are traded. Options and futures contracts are presented in the futures sections of these platforms.There are 64 exchanges working with futures in the world. One of the largest is the Chicago Mercantile Exchange CME (commodities and cryptocurrency).Among the cryptocurrency exchanges working with futures contracts, OKEx, BitMEX, Binance Futures, ByBit, Huobi and Deribit deserve attention (they are in the TOP 10).Read more: Overview of the Huobi Global ExchangeThe process of trading derivatives should be considered in more detail.Choosing a broker and opening a trading accountThe choice of a broker should be given maximum attention. In addition to having a direct access to the exchange platforms of interest, you should check the license. The list of licensed brokers is presented on the official website of the Central Bank of the Russian Federation.It is useful to get acquainted with the reliability ratings on specialized Internet resources and reviews of real customers. After registering on the broker's website, creating a personal account, verifying your identity and installing a trading terminal (QUICK, MT4, MT5 or the broker's own developments), you need to top up your trading account.In some cases, access to the demo version (if available) is provided without making a deposit.Read more: Stock market Broker: how to choose it and how to work with itChoosing a derivativeOne of the main advantages of derivatives (namely futures) is a wide range of assets. We choose the market category from the following options: indices, commodities (energy, agricultural products, etc.), interest rates (LIBOR, RUONIA, etc.), currency or securities.After that, we select the type of trading instrument (a specific type of metal, a brand of oil, etc.). The choice should be made taking into account the previous trading experience. If a trader has been working with stocks for a long time, then futures and stock swaps are among the preferred instruments.Analysis of the market situationBefore making a final purchase decision, you should analyze the market situation using fundamental and technical analysis. It is necessary to take into account everything that may affect the value of the underlying asset in the future.It is not superfluous to study the history of quotes and track the news background.Read more: Chicago Mercantile Exchange (CME): history, structure, advantages and featuresPurchase of a contractAt the final stage, we determine the type of contract and the nuances of the specification. For example, there are 2 futures options available for gold — a standard one for 100 ounces and an e-mini (10 ounces). Having selected the necessary asset, we make a purchase request and confirm the transaction.At first glance, trading in derivatives (derivative financial instruments) seems simple and understandable.In reality, you need a lot of trading experience, a knowledge base, an understanding of the market situation, skills in analysis, risk management and the use of leverage.In the absence of proper training, it is advisable to undergo training and try out various strategies in the demo version. For beginners who do not have system knowledge, it is advisable to start with the most liquid and volatile instruments — oil futures, indices or blue-chip stocks.Read more: Causes of inflation and scientific approaches to their ...

Trading using a strategy of playing against the crowd is a style of investing that goes against the prevailing market trends by buying assets that are performing poorly and then selling them when they prove themselves.A trader who plays against the crowd believes that people who say the market is going up only do so when they have fully invested everything and have no further buying power. At that point, the market is at its peak. On the other hand, people predict a downturn when they have already sold out everything, at which point the market can only go up.Investors who act against the crowd tend to use various sentiment indicators, particularly those that emphasise out-of-favour securities with low price/earnings ratios (P/E ratio).Simply put - if you follow the herd, it will lead you to the slaughterhouse. Such traders swim against the current and assume that the market is usually wrong on both its lows and highs. They believe that the more the price fluctuates, the more misguided the rest of the market must be.The basics of trading against the crowd strategyThe strategy of trading against the crowd is not as simple as adopting a position that is the opposite of the common public view - "the trend is your friend". A stock that rises higher and higher over an extended period of time will naturally receive a lot of positive sentiment from traders - this does not mean that an investor trading against the crowd will immediately hate that stock and act the opposite. Going against the price trend is always a tough way to play. This approach is to look for a stock for which the sentiment of most traders does not coincide with the established trend. In other words, traders trading against the crowd are looking for stocks that are going up, despite a significant amount of pessimism.Read more: How to invest in stocks and what you need to knowThe reason behind this strategy is that pessimism indicates that many investors are avoiding the stock and therefore sitting on the sidelines. If the stock continues to rise, then at some point the mood will change and money from the outside will start pouring into that stock, thereby causing its price to rise in a short period of time. Rapid and violent consolidation is particularly useful for those who are options traders who trade against the crowd.Indicators for the trader who trades against the crowdTraders who trade against the crowd are constantly monitoring the markets and reading about stocks, which implies a sense of sentiment. It also helps to gain the ability to quantify sentiment, and this can be done in several different ways:Feedback from analysts, for example, is fairly straightforward. Analysts make recommendations regarding buying/holding/selling a stock, depending on what they think investors should do. If a stock rises higher but has almost no "buy" recommendation, then there is the potential for upside - which could influence those traders on the sidelines to buy the stock.Shorting a stock or buying put options are two ways in which investors can profit when a stock falls in value. Thus, tracking changes in the amount of borrowed securities sold short and the number of put option purchases are ways to quantify the negative sentiment towards a stock. If there is a large number of these negative bets being placed on a stock while it is moving higher and higher, then a trader who trades against the crowd can assume that there is a significant amount of money from the outside that can still be leveraged to keep the consolidation going.Read more: Leverage on the stock ...