US Stocks Decline as Fear of Fed Rate Hike Grows

The US stock market suffered a decline, as investors grew increasingly concerned about the Federal Reserve potentially raising interest rates in response to the hot job market.

The employment report released on Friday showed that the US added 379,000 jobs in February, far surpassing economists’ expectations of 180,000. This strong job growth has fueled concerns that the Fed may need to raise interest rates to curb inflation, which could slow down the economy.

The Dow Jones Industrial Average fell by 0.9%, while the S&P 500 declined by 1.2%. The tech-heavy Nasdaq Composite saw the biggest drop, declining by 1.7%.

Investors also remained cautious about the ongoing progress of stimulus talks in Congress and the possibility of additional fiscal stimulus. The Federal Reserve has indicated that it will continue to support the economy, but a rise in interest rates could offset any positive effects from the further stimulus.

Analysts predict that the stock market will remain volatile in the coming weeks, as investors assess the potential impact of the hot job market on interest rates and the overall economy. However, many believe that the long-term outlook for the stock market remains positive, as the vaccination rollout and additional stimulus should continue to support the economy.

US Stock Market

The US stock market is one of the largest and most important stock markets in the world. It is made up of several exchanges, including the New York Stock Exchange (NYSE) and the NASDAQ, which together list thousands of publicly traded companies from a variety of industries. The US stock market is considered to be a barometer of the overall health of the economy, and the performance of the market is closely watched by investors, analysts, and policymakers.

Investors in the US stock market can buy and sell stocks through a brokerage firm and can choose from a variety of investment vehicles, including individual stocks, stock mutual funds, and exchange-traded funds (ETFs). The stock market has a long history of providing attractive returns to investors over the long term, although it can also be volatile and experience periodic downturns.

The Federal Reserve, the US central bank, plays a key role in the US stock market by setting monetary policy, including interest rates, which can affect the market’s performance. Additionally, events such as natural disasters, geopolitical tensions, and shifts in the global economy can all impact the US stock market.

Dukascopy adds new indices for MT4 traders

Dukascopy Review
Dukascopy

Dukascopy is now enhancing its trading opportunities by introducing two new indices to the MT4 platform. Investors with Dukascopy Bank and Dukasocpy Europe Live accounts and Demo users can take advantage of these freshly added instruments for their portfolios.

Dukascopy customers can add the Volatility Index (VOL.IDX) and the South Africa Top 40 Index (SOA.IDX) to their trading portfolio. Also, it had recently expanded the list of CFDs with 28 Stock CFDs from Mexico, the Volatiltity Index (VOL.IDX/USD) and the South Africa Index (SOA.IDX/ZAR) for users of the proprietary trading platform – Jforex.

Dukascopy is continuously advancing the capabilities of its premier JForex4 platform, offering traders access to an ever-growing selection of 1,160 assets. These tools span from popular Forex currency pairs and gold bullion all the way to cryptocurrencies, stocks & ETFs.

MT4 is a complimentary trading platform with a limited list of trading instruments. In the near future, Dukascopy plans to announce the MT5 trading platform launch.

FCA Sees Rising Costs of Compensation Scheme, Looks for Improvements

The Financial Conduct Authority (FCA) has announced the next steps to improve its Financial Services Compensation Scheme (FSCS). The proposal to implement the changes was presented a year ago due to the rising concerns regarding increasing costs.

FCA

Financial services firms regulated in the UK must contribute to FSCS, which guarantees compensation if any authorized member of the industry becomes insolvent or cannot meet clients’ claims. The compensation scheme aims to provide additional protection for retail investors and increase confidence.

However, the local financial services providers report rising concerns that compensation liabilities could be a barrier to new companies looking to enter the market and to smaller players who may struggle to stay in business. It might reduce the availability of certain financial services in the UK.

“We welcome the constructive engagement and feedback which will inform the next phase of this work. We want to make sure the cost to the industry for providing vital protection to consumers through the FSCS is distributed in a fair and sustainable way – that the polluter pays. We’re continuing our assertive action to prevent harm from happening in the first place, which should help reduce the levy over time,” Sheldon Mills, the Executive Director of Consumers and Competition at the FCA, said.

The FCA began reviewing the compensation framework in December 2021 and accepted comments from interested parties until March 2022. On 14 December 2022, the regulator published a feedback statement highlighting the need to improve the regulated firms’ behaviour to reduce FSCS calls.

The regulatory watchdog has already taken action to address current concerns. In line with its investment strategy, the FCA is moving to a stricter approach to prevent potentially harmful companies from entering the market. The institution has also imposed twice as many restrictions on firms to block the sale of the riskiest financial products.

After reviewing and addressing the industry’s feedback, the FCA’s next phase of the FSCS review will analyze compensation limits and consider whether their level for particular types of claims is appropriate.

In addition, the regulator wants to survey firms and consumers to raise awareness of the compensation scheme’s impact on investment decisions and traders’ confidence. In the third step, the FCA will analyze funding class thresholds checking whether they remain at appropriate levels.

Interactive Brokers introduces PortfolioAnalyst Beta, offering an intuitive dashboard

Interactive Brokers (IB) Review
Interactive Brokers

Electronic trading major Interactive Brokers introduces PortfolioAnalyst Beta, now offering an intuitive dashboard with allocation, attribution, performance, risk metrics and more without the hassle of downloading PDF/CSV reports.

Users of the solution can view side-by-side summary statistics and drill down into details with historical periods, benchmark comparison, and frequency selection.

Interactive Brokers regularly expands the capabilities of PortfolioAnalyst, a solution that consolidates, tracks and analyzes one’s complete financial performance.

The solution now supports custom Time Periods and Cumulative Performance Statistics reports. When selecting Time Period and/or Cumulative Performance Statistics you will be asked to Include Long and Short Breakout Yes|No on the next page.

In addition, there are new crypto connections for external accounts. Coinbase, Kraken and Gemini connections are now available to link in PortfolioAnalyst.

Finally, Interactive Brokers now offers PortfolioAnalyst for all paper accounts. Traders can test trading strategies, generate performance on prospective client portfolios and experience Interactive Brokers’ robust platform before opening an account.

The Diesel Crisis Is Going Global

  • Prices for US diesel in the spot market of New York harbor have risen more than 265% since President Biden took the oath of office in 2021
  • Almost every region on the planet will face a diesel shortage this winter

The global diesel markets are facing a perfect storm as capacities tighten and stocks run low. If this continues, it could jeopardize critical transportation networks since industrial fuel powers ships, trucks & trains; there’s also concern about supply chains being compromised by refinery issues in response to high demand for heating homes or businesses.

The worldwide shortage of diesel will have devastating effects on the global economy, including an accelerant that will burden households and businesses. Both gasoline and diesel prices are linked to crude prices set on the global market. Due to supply constraints, diesel prices in many markets currently demand a hefty premium. 

According to the Energy Information Administration, the US now has just 25 days of diesel supply, the lowest since 2008; and while inventories are record low, the four-week rolling average of distillates supplied – a proxy for demand – increased to its highest seasonal level since 2007. 

The ban on Russian crude to Europe in December could worsen the situation. Then a ban on Russian diesel in February could unleash even more chaos for the continent. Traders are panic-hoarding Russian oil products before the bans come into effect. Earlier this year, the US halted Russian diesel shipments, which last year, it was a major supplier to the East Coast.

Winter could exacerbate problems for the Northern Hemisphere as the worst diesel squeeze in a generation could wreak havoc on the already faltering global economy. 

Interactive Brokers Spreads European Presence with New Office in Ireland

The First Office in Ireland was established in 2020, and since then the local team has enlarged and reached to 110 employees.

Interactive Brokers

Interactive Brokers is boosting its presence in Western Europe with the opening of a new office in Dublin, Ireland. The move aims to better serve the client’s needs and support Interactive’s growth ambitions across several markets throughout that region.

The American broker first established a presence in the country in 2020. It was securing its position in continental Europe after the fallout of Brexit.

“Interactive Brokers initially chose Ireland due to the benefits of Ireland’s EU membership, strong regulatory reputation, and ease of access to the European market. Throughout that process and into our first two years of business, we have been incredibly impressed with the local financial services talent and pro-business environment,” said Interactive Brokers’ Chief Operating Officer, Kevin Keller.

Interactive Brokers has a global presence with offices around the world. Apart from its US and Irish roots, it also maintains a physical presence in Canada, the United Kingdom, Switzerland, Hungary, India, China, Japan, Singapore, and Australia. The company’s headquarter resides in Connecticut.

Interactive Brokers

Interactive Brokers has been around since 1978 meaning it’s one of the first brokers in this industry. The company also saw its revenue jump 70% between July and September last year. However, most parts were from interest income rather than commission-based because those numbers only rose by 3%.

Meanwhile, Interactive Brokers is focused on expanding its offerings. Among several things, the broker added support for fractional shares for European company stocks and exchange-traded funds (ETFs). It also launched a new mobile trading app earlier this year.

Moneta Markets Enhances Copy Trading with ZuluTrade Integration

ZuluTrade is a major third-party copy trading platform. The broker is also offering copy trading services with DupliTrade.

Moneta Markets has expanded its social trading offerings by adding ZuluTrade to its trading platform, the broker announced on Friday. The latest integration came when Moneta already offers such services with Duplitrade, another popular third-party social trading platform.

“We have always intended to offer clients access to ZuluTrade, simply because it’s the largest automated peer 2 peer social trading platform out there. However, we wanted to ensure we were set up to really get the most out of it,” said David Bily, founder, and CEO of Moneta Markets.

The broker’s decision to integrate ZuluTrade came after it expanded its product range and also improved trading infrastructure and pricing.

Copy Trading Trend

Copy trading, which allows traders to copy the trading strategy of experts, has become very popular in the past decade. The industry is estimated to grow at an annual compounded rate of 7.8 percent and is expected to reach from $2.2 billion at the end of 2021 to $3.77 billion by 2028.

ZuluTrade

ZuluTrade is a very popular copy-trading platform that has partnered with dozens of brokers to enable them to introduce copy-trading services to their clients. The platform was founded in 2007 and was acquired by the Finvasia Group last December for an undisclosed sum, a deal that also included Greek-licensed broker, AAAFx.

Headquartered in Greece, ZuluTrade is now focused on expanding its global reach and is seeking new regulatory licenses. It is also pushing to add new capabilities to its existing social trading platform.

Moneta Markets

Moneta, established in 2020, recently came out of the Vantage umbrella to operate on its own. The broker gained a new regulatory license in Australia, while it is already regulated in South Africa and St. Vincent and the Grenadines.

Meanwhile, third-party trading platform providers have become cautious lately after Apple delisted two MetaTrader apps from the App Store, possibly in response to the usage of the platform by scammers. These third-party trading platforms are now hardly partnering with shady brokers who operate without a license or offshore approvals.

eToro Updates on Distribution of Spark Token

Online broker eToro has issued an update on the distribution of Spark tokens. The broker is supporting the distribution of the Spark tokens by the Flare network to all eligible users.

eToro
eToro

According to Flare’s latest announcement, there is now a somewhat definite distribution window: the period between October 24 and November 6, 2022. Flare also added that “The exact date will be dependent on feedback from exchanges.”

eToro reminds its clients about the eligibility requirements that users of the investment platform must meet in order to receive Spark tokens or the USD equivalent value:

  • Users must have held the XRP tokens consecutively between 00:00 on 11.12.2020 GMT, and 00:00 on 13.12.2020 GMT. XRP tokens that were pending deposit or withdrawal at the time of the snapshot were not counted towards a user’s XRP balance. The broker records at the moment of the snapshot are regarded as conclusive evidence.
  • The snapshot did not include leveraged positions, CFD positions, short positions, CopyTrade positions or Smart Portfolio positions in XRP, or any cross transactions of XRP with other crypto assets and/or with currencies or such transactions otherwise classified as CFD on the platform.
  • Holders of XRP in the eToro Money crypto wallet (formerly “eToro Wallet”) were not included in the snapshot and therefore are NOT eligible for the Spark distribution.
  • Users must be fully verified at the time that the snapshot was taken, and must still be fully verified at the time of each Spark or USD distribution.

The Spark token distribution program supported by the broker is subject to regulatory requirements, is not guaranteed to happen, and could be accompanied by further terms, as applicable to eligible users and the mechanics of the distribution. The eligibility criteria and the manner and timing of such distributions are therefore subject to change.

Eligible users have received emails from us in the past, informing them of their eligibility.

The broker notes that its clients in the US who held XRP at the time of the snapshot are still eligible to receive Spark tokens, despite XRP no longer being available on the US platform.

About eToro

Etoro is an Israeli multinational social trading and multi-asset investment company that focuses on providing financial services. The headquarters are located in Central Israel, with registered offices across Cyprus, the UK, the US, and Australia.

eToro provides a wide selection of stocks, currencies, commodities, crypto assets, ETFs and indices through its own innovative investment platform. Using professional tools and analyses on eToro, eToro clients can track and invest in a variety of financial instruments.

For more information read our detailed review on eToro.

EU Passes Crypto Regulation Bill

The European Union has passed a landmark piece of legislation aimed at regulating the digital asset market. The 28 to 1 member-state lawmakers voted to pass the Markets in Crypto Assets Regulation (MiCA) bill, which will come into effect in 2024.

crypto

The Markets in Crypto Assets regulation (MiCA) lets providers of wallets and other crypto services market themselves across the bloc if they register with national authorities and meet minimum guarantees intended to protect investors and maintain stability.

The European crypto industry has broadly welcomed the regulatory recognition, even if there are some qualms over the restrictions it places on the use of stablecoins, crypto assets that seek to maintain their value with respect to fiat currencies, as well over uncertainties about whether the rules will apply to non-fungible tokens (NFT).

The law will enter into force between 12 and 18 months after being published in the bloc’s official journal, which is likely to happen next spring.

The European Union Commission is also looking to supervise the decentralized market (DeFi) market more closely. The authority said that it wanted to consider embedded supervision of the niche.4

The effort would involve a pilot that uses built-in technology to monitor the DeFi market. It indicates that the EU is not done as far as crypto regulations are considered.

The EU’s decision to take the MiCA bill to the last stage of voting signals its intent to regulate the crypto market. There may be more regulation on the horizon as it puts the DeFi under the microscope next. The bill could prompt other countries, such as India and the UK, which have been working on crypto regulation for a long time. 

Ethereum Drops To $1,300 Amid Bear Assault

The crypto market is currently reacting to new economic data published in the United States. Ethereum, like many other cryptocurrencies, has been following trends and giving back its profit from this past week as it moves along with Bitcoin and other large digital currencies.

Ethereum
Ethereum

Ethereum trades at $1,300 with a 2% loss and sideways movement in the last week. Other cryptocurrencies in the top 10 by market capitalization record similar price action with the exception of XRP. This token is showing strength against the trend and continues to knock on profits over the same period.

The Ethereum price has reacted relatively well to the recent price action with bid (buy) liquidity coming in at today’s low. This has supported the price of ETH allowing it to bounce into the area of around $1,340.

The second cryptocurrency by market cap was experiencing a spike in selling from all investors, from retail to whales. However, the selling has been mitigated in recent hours with large players with bid orders of as much as $100,000 buying into Ethereum’s price action.

These players bought over $800 million in ETH on short timeframes and might be able to sustain ETH for a while. Nevertheless, ETH’s price action might be in jeopardy as the market heads into the weekend.

For Ethereum and Bitcoin, $1,200 and $18,500 are key levels to prevent a fresh leg down into the yearly lows. According to a pseudonym trader, as long as these levels hold, the cryptocurrency will hold the line with more days of sideways movement.