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Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

« on: September 12, 2023, 04:47:52 PM »

Oil and gas are steady, but for how long?

After a relatively mild winter characterised by largely balanced supply and demand, many of us appear to have forgotten the crippling oil prices of last summer. At a time of runaway inflation and with many still reeling from the pandemic, crude prices reached an eye-watering high of $116 a barrel. This sent prices shooting up at the pump and had knock-on effects for a range of related service sectors, such as freight forwarding, passenger transportation, and local delivery, to name but a few. Then, to make matters worse, the ongoing geopolitical tensions in Eastern Europe led to record increases in natural gas prices that saw the Natural Gas EU Dutch TTF increase from an already high average price per MWh of €93.16 in August 2021 to an all-time high of €339.42 exactly one year later.

Since the start of this year, however, prices of both these key energy resources have been in relative freefall, with WTI and Brent crude now (as of 29/08) sitting at $80.65 and $85.12 per barrel, respectively. Natural gas has come down even harder, with EU average prices currently at €36.40 per MWh and $2.55 per million BTU for US Henry Hub (down from $8.81 twelve months ago). With OPEC+ remaining steadfast in their production cuts as demand from post-zero-COVID China rises and with what's expected to be a much harsher winter fast approaching, many investors and traders are wondering whether these multi-year lows in the energy markets can be sustained much longer. In this piece, we'll take a broad look at the global oil and gas markets and their prospects into 2024.

Oil slippery

As we've already stated, crude oil of virtually all varieties has been quite steady since the start of the year, with prices hovering around $80 for much of 2023. Now, however, we've started to see some more intentional movement as both Brent and WTI have managed to make gains of almost 12% over the past thirty days. It's no secret that both the Saudis and the Russians have been aiming to support prices in and around current levels, with Riyadh now making voluntary output cuts of 1 million barrels per day for a third consecutive month and Moscow committing to a 300,000 bpd reduction in September.

Furthermore, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) already agreed a broad deal in June to curtail total supplies until the end of 2024. This means that the oil market is likely to be highly sensitive to demand jumps over this entire period, and this is precisely what we've seen with the recent gains following increased demand from China following the end of its zero-COVID policy. Experts from Morgan Stanley "suspect that the likely inventory trajectory anchors the market around $80/bbl, probably in a $75-85/bbl range", and yet the investment bank has still increased its demand forecast from 1.8 million bpd to 2.1 million bpd and does expect the bulls to come to the fore in Q4 2023 and Q1 2024.

Cooking with gas

While oil is certainly a staple commodity, gas is a matter of life or death, especially when winter comes rolling around. And while we might have gotten away with a mild one last year, all the latest data suggest that this year will be bitter. As temperatures plummet and demand for natural gas soars, we simply cannot predict how high prices might go. After all, the geopolitical situation at present means Europe still lacks a stable supply of cheap and plentiful gas. Despite the potential to import from the US, the practicalities of such an undertaking might not only mean higher prices but also supply interruptions.

Though demand has been weaker of late, that's expected to change very soon. First, it was revealed that the new German LNG terminal will face substantial delays in becoming operational just as Norway announced that it is shutting down its Troll gas field for maintenance. And with the major EU reserves at below 90% capacity, this could soon become a problem if the heating season begins earlier than expected. What's more, the supply-side risks don't end in Europe but are, in fact, global. In Australia, Chevron is still in the grip of industrial action that has seen LNG workers down under strike for higher pay. Until an updated proposal is accepted by the unions, this will inevitably magnify any increases in global prices. Given the current cocktail of supply drought and impending demand hikes, Henry Hub Natural Gas prices could rise to above $3.00 in the coming weeks, especially if the current sentiment and the news environment are sustained.

Energise your trading with Libertex

As a CFD broker with a strong reputation built over many years, Libertex has a long history of connecting traders with the financial markets. Because Libertex offers both long and short positions in a varied range of CFDs, you can find an underlying asset class and direction to suit your trading strategy. Beyond favoured instruments like stocks, ETFs and currencies, Libertex also offers CFDs in the full gamut of energy resources, including oil and gas derivatives such as WTI Crude, Light Sweet, Brent, and, of course, Henry Hub Natural Gas. Best of all, Libertex's CFD model means you don't need to physically own any of the underlying instruments you wish to trade and can keep your portfolio in Libertex's multi-award-winning trading app. For more information or to create an account today, visit www.libertex.com

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.77% of retail investor accounts lose money when trading CFDs with this provider. Tight spreads apply. Please check our spreads on the platform. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

« on: September 07, 2023, 04:41:42 PM »

European inflation dips as traders and investors look for opportunities

It’s been a tough couple of years for Europe. Beyond the geopolitical uncertainty and energy insecurity that has been tearing the continent apart, the rate of inflation has been solidly above target and has even threatened to enter hyperinflation territory at times. Anyone in the eurozone will surely remember the torrid Q4 2022 when price pressure averaged over 10% and hit an all-time high of 11.5% in October. But after all that, it finally looks as if the worst is behind the Old Continent, despite there being no end in sight to its other problems.

As of July 2023, inflation in the European Union is down to 6.1%, while in the euro area, this figure stands at 5.5%. Naturally, this is still significantly above the usual target of around 2%, but it sure is a massive improvement on double digits. It’s also a sign that the ECB’s more hawkish policy is working as intended and that a September rate increase may be able to be avoided. For context, post-Brexit Britain is struggling with inflation of 6.8% and likely staring at another BoE rate hike of at least 25 basis points in the autumn. Of course, what traders and investors are most interested in is how this is likely to affect their investments. In this article, we’ll be covering the likely impact of this new trend on a range of asset classes, including stocks, commodities and forex.

Equitable deal

After hitting astronomical heights in 2020-2021, stocks experienced a very hard return to reality in 2022. This was followed by a seemingly unending period of stagnation for many tickers. Some of the worst affected were the biggest gainers of the pandemic era. Meme-investor darling GameStop, for example, has gained less than 1% since finding a bottom in January of this year. DocuSign, Salesforce and PayPal tell a similar story. In fact, it’s only extremely competitive and well-funded companies like Tesla and Palantir that have managed to make any sort of return to growth in 2023.

It may sound incredibly impressive that these two tech giants are up an average of 115% at 233.19 and 14.67, respectively, but these prices are actually still a whole 50% below their all-time highs, which leaves much more growth potential to be realised. China is a similar story, with huge names like Tencent, Alibaba, and Baidu languishing at multi-year lows, just begging to be snapped up by prospective investors. Meanwhile, the EuroStoxx 600 index is currently just 13% higher than it was over two decades ago in 2000. These current prices in equities the world over represent excellent value for money, and as inflation continues to drop, interest in risk assets like stocks will only increase, potentially leading to a new bull cycle in 2024.

Gold, silver and more

Any old-school investor will tell you that physical assets are what you want during times of high inflation. Some like gold and silver, others like industrial metals like copper and platinum, while others still like the day-to-day staple of oil. However, in today’s changing world, traditional strategies don’t always hold true. The yellow metal, for instance, has been fairly stagnant since the end of the pandemic and now only stands 25% above its pre-COVID levels. After flirting with its all-time high of$2014 per Troy ounce in April of this year, gold is now down around 5% to $1914 at the time of writing (23/08), and it looks as if the famed commodities supercycle is firmly off the cards for now.

It’s much the same for silver, too, which is currently hovering around $23 an ounce, down from $26 at the end of Q2 2023. Copper futures prices are also down around 10% over the same period, a trend that seems to be consistent across both stores of value and industrial metals. Despite the general global uncertainty, it appears that commodities haven’t been able to provide the safe haven many would typically predict. And with inflation, these 10% losses are actually even more pronounced. The real reason behind this phenomenon is the strong dollar, but we’ll get to that in a bit.

Don’t forget Forex

In a context of higher-than-average inflation, traditional wisdom would tell us to steer well clear of fiat currency. However, in this particular instance, that might be a bit of an oversimplification. We’ll all surely remember the historic parity achieved between the US dollar and the euro back in November 2022. Well, since then, things have certainly calmed down, but the greenback still remains much stronger than it was throughout the pandemic period. And since virtually all assets are quoted in US dollars, any gains that are made have to be offset against the value of the US national currency.

However, it’s not in pairs with the USD where the current opportunities lie in the forex market but rather in the cross rates. As we touched upon earlier, the ECB appears to be dealing with inflation much more competently than the BoE just now, and this is clearly reflected in GBP/EUR. Since the start of the month, the pair has risen from 1.15 to 1.17, and it looks as if this trend will continue unless the UK regulator takes truly decisive interest rate action in the autumn. But this is easier said than done amid a cost-of-living crisis in a country with extremely high levels of home ownership, which makes the island nation especially sensitive to any more rate increases. Shrewd investors looking to bide their time before entering riskier asset classes like stocks and crypto could well benefit from holding their cash in GBP/EUR in the meantime.

Trade it all with Libertex

Libertex is a well-respected broker with experience connecting ordinary traders and investors with the world markets.Libertex offers CFDs in a wide range of asset classes from stocks, indices and ETFs such as Tesla, Salesforce, Tencent and the EuroStoxx 50 index, all the way through to commodities and Forex pairs like XAUUSD and EURGBP. With our CFD model you can have short or long positions in all these underlying assets without having to own the instrument. With Libertex’s multi-award-winning app, you can keep your entire trading portfolio in one location for. For more information or to create an account of your own, visit https://libertex.com/signup

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.77% of retail investor accounts lose money when trading CFDs with this provider. Tight spreads apply. Please check our spreads on the platform. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

« on: September 01, 2023, 05:02:15 PM »

Oil and gas are steady, but for how long?

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

« on: August 14, 2023, 09:03:04 AM »

US rating downgrade has far-reaching consequences

The news last week of ratings agency Fitch's decision to strip the US of its AAA credit rating was nothing short of groundbreaking. For over a century, the United States has been a debtor of choice for many major financial institutions on account of its strong, stable, and very large economy. However, Fitch stated in a recent report that: "The rating downgrade of the United States reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance".

US Treasury Secretary Janet Yellen, meanwhile, called the move "arbitrary", asserting that the decision was based on "outdated data". However we analyse the situation, it's undeniable that the US has shown uncharacteristic weakness in recent months. First, we had the collapse of several major banks. Then, there was the June bipartisan agreement to lift the debt limit to $31.4 trillion until January 2025, which almost saw the US default on its existing commitments.

Now, another rating agency, Moody's, has decided to downgrade 10 mid-sized US banks and has placed six banking giants, including Bank of New York Mellon (BK.N), U.S. Bancorp (USB.N), State Street (STT.N) and Truist Financial (TFC.N), on review for potential downgrades. The response from the markets was immediate, with all three major US indices experiencing sell-offs. The Dow Jones Industrial Average (DJIA) fell 0.45% to 35,314.49, the S&P 500 (SPX) lost 0.42% to reach 4,499.38, and the Nasdaq Composite (IXIC) dropped 0.79% to 13,884.32. While it might not seem like much on the surface, this could well be just the tip of the iceberg. A growing sense of uncertainty and worry is growing in the US market and, by extension, the world. Traders and investors are understandably concerned and keen to grasp what the future might hold for their capital.

Equity release

Apart from the initial dip that is to be expected after such an unprecedented development, the longer-term outlook for US stocks is cloudy at best. Both the S&P 500 and Nasdaq 100 indices have been up and down all year and have only managed an average of a 6% gain since August 2022. This sideways movement speaks to a larger issue that has prevented equities from gaining any sort of real traction since the post-pandemic crash of late 2021. One of the biggest factors behind this uncertainty has been the above-target inflation that has plagued both the US and the wider world. As traders braced for the latest US inflation numbers on Thursday (10/08), further declines were expected. According to Reuters analysts, they tipped consumer prices to reveal a 3.3% year-on-year increase in July, up from 3% in June. This would be the first acceleration in inflation since June 2022 and could spell trouble ahead for already-wavering equities.

Buried Treasury

Ironically enough, despite the downgrading of the US Treasury's creditworthiness, bond yields have actually been outperforming the expectations of many analysts. Indeed, it seems the worse the prospects of stocks, the better T-note yields look. In fact, data from BofA Global Research showed the one-month correlation between the S&P 500 and the 10-year T-note yield at their most negative since 2000, which means the two assets are once again moving sharply in opposite directions. At the current level of 4.003, the 10-year is actually up almost 10% MoM, which, at first glance, seems illogical given the US's credit rating woes.

However, if we return to rising inflation, the picture becomes much clearer. Coupled with the Federal Reserve's firm stance on future rate cuts — having all but ruled out any reductions this year — the case for government bonds becomes stronger. And with the stock market looking stagnant, T-notes offer a relative safe haven for investor capital over the medium term. What's more, the 2- and 5-year Treasury bills offer even more attractive yields (4.80% and 4.13%, respectively), making them particularly solid buys for risk-off investors looking to ride out the turbulence.

Nowhere to turn

The prospect of holding the bulk of their capital in cash or bonds is an ignominious last resort for many die-hard bulls. In situations such as these, the risk-friendly would typically look to low-correlation regions like China to put their money to work. Unfortunately, though, even these markets have felt the impact of the recent turmoil. Beyond the contagion effect of the US credit downgrade, China's stock market has its own deeply entrenched problems. News that China's consumer prices had slipped into negative territory for the first time in 28 months in July sparked further sell-offs on the already reeling Chinese and Hong Kong equities markets. Mainland Chinese markets closed lower on Wednesday (09/08), with the Shanghai Composite down 0.49% to 3,244.49 at the close of play.

The Shenzhen Component, meanwhile, dropped 0.53% to end the day at 11,039.45, while Hong Kong's Hang Seng index was just about hovering above the flatline in its final hour of trade. This comes after a torrid year for the flagship Hang Seng, which is already down more than 10% YTD. On the bright side, these multi-year lows do suggest good buys for long-term investors, but it looks like they'll have to be extra patient for significant returns.

Trading different CFDs according to the world situation with Libertex

With Libertex, you can trade a mind-boggling large range of CFDs from a variety of asset classes, including stocks, ETFs and commodities, through to forex, options and even crypto. And because Libertex offers both long and short positions, it doesn't matter where you feel the market is heading. You can always find an underlying asset and direction to suit you. Aside from CFDs on major US indices like the S&P 500, Nasdaq and Dow Jones Industrial Average, Libertex offers CFD exposure to the US bond market through the iShares Core U.S. Aggregate Bond ETF and Chinese stocks via the iShares China Large Cap ETF, China A50 or Hang Seng. The best part of all is that our CFD model means you don't need to actually own any of these underlying assets in order to work with changes in their price. For more information or to create an account today, visit www.libertex.com

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.77% of retail investor accounts lose money when trading CFDs with this provider. Tight spreads apply. Please check our spreads on the platform. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

« on: August 08, 2023, 11:27:34 AM »

Chinese stocks surge on bullish Beijing rhetoric

We all remember just how devastating the pandemic was for the entire world's economy. However, as much pain as some countries experienced, no nation was hit worse than China. This was due to a combination of factors, but chief among them are the heavy reliance of Chinese industry on Western custom and, of course, the CCP's ultra-draconian and now infamous "Zero COVID" policy.

But now, after a more than underwhelming three years that has seen the bulk of China's biggest companies on a seemingly unstoppable downward trajectory, there finally appears to be light at the end of the tunnel this week following a much-anticipated meeting of the Chinese Politburo on Monday (31 August 2023). As we head into Q3 of this highly uncertain year for the world, investors and traders everywhere are looking for bargain markets with strong independence and low correlation with US and European markets, and China certainly fits that bill.

What's the news?

The July Politburo meeting is known to set the tone for China's economic policies in the second half of the year. This is why market participants and pundits watched it closely in eager anticipation of firmer policy guidance for faltering growth in the world's second-biggest economy. And the elite of the communist government certainly didn't disappoint this time around. Following significant GDP underperformance in Q2, with figures putting growth at 6.3% instead of the 7.3% forecast, China's top leaders pledged to increase policy support for domestic consumption amid a much slower-than-expected post-pandemic rebound. In the meeting minutes, Xinhua News Agency reported the Politburo as stating that a full post-COVID recovery will take a "wave-like" shape and the process will be "torturous".

Stocks on the up

Despite the long road ahead, the clear sign that the government recognises the scale of the problem and is willing to offer policy support helped to buoy stocks across Asia. The biggest initial gains came on Hong Kong's Hang Seng, where some of China's biggest tech stocks are registered. Alibaba, for instance, shot up 5% the day after the Politburo meeting this week and, as of 3 August, is sitting at HKD 93.15, a monthly gain of 10%. Baidu, on the other hand, made its gains in the days leading up to the meeting and then dipped slightly in the days that followed. BIDU is still up almost 8% to HKD 144.85 since 25 July, so things are still definitely looking positive for the tech giant. Tencent's trajectory was very similar, rising slightly ahead of the meeting before correcting downward again after the meeting itself. It currently stands at 342.80, which marks a 7.5% gain from its 25 July local low.

A look to the future

Traders and investors would be forgiven for thinking that this is the end of the Chinese stock market's stagnation, but we shouldn't forget November of last year. Just like now, we saw a strong uptick across Chinese equities once the CCP announced the end of its harsh anti-COVID restrictions, but the market soon moved back into a sideways channel. We would be wise to heed the Politburo's message that this recovery is likely to be "wave-like".

As we mentioned earlier, China's industry is largely dependent on a healthy economic situation in the US and Europe. With the ongoing geopolitical uncertainty and energy crisis, we can't be too optimistic about a rapid rebound for China's manufacturing-heavy economy. That said, domestic consumption and sentiment are definitely trending up, and the multi-year lows of many of the biggest Chinese companies certainly make them attractive buys for long-term investors. There's still a long way to go, and we have to be cautious in our optimism, but the medium-term picture for Chinese stocks will become much clearer by the end of this year.

Trade China-related underlying assets with Libertex

Libertex offers CFDs in a wide variety of asset classes, from stocks, commodities and indices all the way through to forex, options and even crypto. There's something for everyone. And since we offer both long and short positions, you can throw your hat in the ring in whatever direction you think the market is headed. From China, Libertex offers CFDs in all the major tech stocks, including Alibaba, Baidu and Tencent, as well as the China A50 index and iShares China Large-Cap ETF for more diversified traders For more information or to create an account of your own, visit www.libertex.com today!

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.77% of retail investor accounts lose money when trading CFDs with this provider. Tight spreads apply. Please check our spreads on the platform. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

« on: August 01, 2023, 11:48:20 AM »

Currency markets mixed amid latest Fed rate hike

The past couple of years have been tough on much of the world, but between severe geopolitical insecurity and astronomical fuel costs, Europe has undoubtedly been the hardest-hit region. And now, after a more-than-deleterious start to 2023, the European economy is starting to show worrying signs of a manufacturing slowdown compared to its US counterpart. As a result, the euro and British pound find themselves in a precarious position against the US dollar, whose domestic economy seems to be faring far better amid a strong jobs market and healthy manufacturing and services PMIs. Though the summer has provided some respite for the fuel-poor Old Continent, winter will be here soon enough, and then fuel insecurity will surely rear its ugly head once more, plunging the European economy back into trouble.

Living in America

In stark contrast to Europe, the US has been gradually improving over the past 12-18 months as a combination of the Fed's policies and an increase in the global trade of energy resources has helped the world's biggest economy drag itself out of the dire straits of 2022 and steadily slash inflation to manageable levels, while also adding increasing numbers of new non-agricultural jobs. Now, the hope is that this slow-but-steady recovery can continue and inflation be pushed down to target levels.

As analysts at HSBC have stated, the US data largely support this "Goldilocks" scenario, which means the grind lower in the USD could extend, especially if we see fewer data disappointments from outside the US. As illogical as it seems, a weaker dollar is actually exactly what the US economy needs right now. Back in the days of EUR/USD parity in Q3 2022, US imports were prohibitively expensive for the EU. However, at more reasonable levels of 1.10 or above, US gas and other exports are much more attractive. However, after the Fed's latest 0.25% rate hike, the likelihood of a rise up towards 1.15 became even more distant. Following the US regulator's decision, the greenback strengthened against most of the major world currencies.

But what about the euro?

Europe's problems are multiple and well-known. Aside from geopolitical instability and a persistent energy crisis, manufacturing and job growth are also in long-term negative downtrends. And as much as the dollar aims to strengthen, the euro appears to be shifting towards a downward trajectory. It wasn't so long ago — back in November 2022, in fact — that EUR/USD was at parity. Now, the possibility that we could be headed back in the same direction is growing by the day, something that neither the EU nor the US wants at a time when the Old Continent is likely to need to import American natural gas.

After reaching a local high of 1.12 in mid-July, EUR/USD is now down to 1.10. Unfortunately, the ECB is still in a "damned if it does, damned if it doesn't" scenario in which it really needs to cut rates to stimulate economic activity. But it can't do this without tanking the single currency. For this reason, many analysts see an extended spell of weakening to come for the euro. Indeed, in a recent note, Danske Bank predicts that the relative strength of the US economy will weigh on the Fibre in the coming months, forecasting the cross at 1.06/1.03 in 6-12 months. What's more, this is not only a general trend but a specifically euro-centric problem. During the same time that the euro has lost 1.8% against the dollar, sterling has actually managed to gain 2.5%.

Japan bucks the trend

As we touched upon previously, the US dollar was able to gain against many of the world majors after the Federal Reserve announced its much-anticipated rate hike, but one notable exception to this trend was the Japanese yen. It all came down to the Bank of Japan's (BoJ) post-meeting comments in which it stated that it would allow for "greater flexibility" in its 10-year government bond yields.

This immediately prompted the 10-year to rise 0.575% for the first time since 2014 and a moderate dip in USDJPY to 139.54. It might not seem like a lot to most Westerners, but in the context of negative interest rates, that's quite a big deal. As the BoJ continues to target 2% inflation, we can most likely expect the yen to remain stable. There are concerns that Japan's ultra-low rates make the yen vulnerable to selling, but this is nothing new, and — as we saw this week — it hasn't stopped the yen from gaining ground on its major competitors. Let's not forget that the yen is also a favoured safe-haven asset, and, at this time of ongoing global uncertainty, this will surely drive interest in the Asian currency.

Trade CFDs on Forex with Libertex

Libertex is a multi-award-winning CFD broker offering trading and investment in a wide range of asset classes, from stocks, commodities and crypto to indices, options and Forex. Libertex offers both long and short positions in a variety of CFDs. With Libertex, you can trade CFDs in EUR/USD, EUR/GBP, GBP/USD, and USD/JPY, so you're always sure to find a currency pair to suit you. For more information or to create an account of your own, visit www.libertex.com today!

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.77% of retail investor accounts lose money when trading CFDs with this provider. Tight spreads apply. Please check our spreads on the platform. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

« on: July 21, 2023, 12:24:26 PM »

Libertex Named ‘Best CFD Broker’ at World Finance Forex Awards 2023

After much anticipation, the 2023 World Finance Forex Awards winners have finally been announced. As a prestigious publication aimed finance professionals, as well as corporate and private investors, World Finance magazine is famed for its award-winning reportage. It covers a broad range of topics from banking and insurance to wealth management and infrastructure investment, with contributions from some of the world’s most well-respected economists and theorists as well as consultants in government think tanks and the WEF.

In its annual Forex Awards ceremony, World Finance magazine seeks to formally recognise the companies that have stood out in the Forex market over the previous year. It was a great honour, therefore, that Libertex was named ‘Best CFD Broker’ in this 2023 year’s edition. For Libertex as a company, every single award has unique significance.

However, not all accolades worthy of pride come with a trophy. One such extraordinary achievement came last year in the form of Libertex’s official recognition as a Great Place to Work®, with our receipt of this certification of the highest distinction of working culture in the business world. Another massive coup for Libertex was the securing of a multi-year deal as an Official Online Trading Partner of FC Bayern whose core values align strongly with our own.

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

« on: July 18, 2023, 02:40:42 PM »

Six down, six to go: the state of the markets 6 months into 2023

Just when it seemed like the worst was behind us, after weathering the pandemic and finally returning to something approaching “the old normal”, we were completely blindsided by an economic and energy crisis the likes of which hadn’t been seen since the 70s. Inflation ran riot, stocks plummeted, and fear was at an all-time high. But since the start of 2023, things have slowly but surely, almost unobservedly, begun to improve across all markets.

The three biggest US indices (DJIA, S&P 500, and Nasdaq 100) are up around 10%, 20%, and 30% respectively since Q4 2022. Europe, too, has seen its flagship Eurostoxx 600 increase approximately 15% over the same period. Even China – which has had its own combination of a housing crisis and geopolitical uncertainty to deal with – has now begun to see a resurgence after over a year of stagnation. Forex, on the other hand, has been uncharacteristically volatile, with the dollar and euro making history. Gold and silver, meanwhile, have been surprisingly flat considering the fear and risk aversion characterising the market. Finally, crypto appears to have weathered the worst of the storm and is back to a certain level of stability.

Six months into the year, we’re able to have a closer look into what factors were behind these market trends.

Taking stock(s)

The global equities market has been on a rollercoaster ride ever since 2020. It started with the huge yet predictable crash once it became clear the world economy would be locking down, then we had a period of monster growth in just about everything but air travel, leisure, and hospitality – though tech and green energy were by far the best-performing sectors. This was followed by a series of small crashes and a long, protracted bear market in 2022 once it became clear that the end of the pandemic wasn’t going to be the panacea many had been hoping for and many of the largest gainers of 2021 were now hugely overvalued. After a very lengthy sideways channel, US and European stocks appear to have entered a new bullish cycle as of Q4 2022. As we touched upon earlier, Western indices are now up an average of 20% over the last six-to-nine months. This is somewhat unusual given the high level of inflation and correspondingly hawkish policy of the Federal Reserve. However, equities markets are usually ahead of the curve, and it could well be that the smart money had pre-empted a change of stance by the Fed amid the economic pain that was present.

East isn’t East

The recovery isn’t just limited to the West, though. After a period of uncertainty stemming both from internal factors like China’s tech crackdown and international geopolitical issues surrounding Taiwan and Hong Kong, Chinese stocks are also apparently entering a new growth phase. We’ll surely remember the infamous disappearance of Jack Ma and the last-hour scrapping of the Ant Group IPO – these examples and others promptly sent Chinese tech stocks into a prolonged tailspin. However, as of November 2022, China’s Big Three of Tencent, Alibaba, and Baidu have in fact gained around 60%, 25%, and 65% respectively. Much will still depend on Fed policy and a resolution to the ongoing geopolitical and economic crises. However, the Fed’s recent softening and the HKSE’s dual counter system are both positive factors for global stocks, including Chinese

Forex in the spotlight…for once

The traditional currencies market is often overlooked. We get it, it’s not as exciting or as fast-moving as stocks or crypto. But Forex is actually by far the largest market of all with trading volumes of over $40 billion every single day – and so when it goes nuts, people take note. And at the tail end of 2022, something highly irregular happened. That’s right, the euro and US dollar were briefly trading at parity – a quote that hadn’t been seen for over two decades beforehand. By the end of January 2023, however, we were already seeing a perfectly average 1.10 on the Fibre. The reasons behind this sudden recovery are less clear than the factors behind the initial disbalance in EURUSD. Effectively, the Fed started to ease off slightly on the hawkish rhetoric at a time when the ECB became serious about getting interest rates up above 4% in a bid to halt mounting price pressure. However, the dollar also has problems of its own. Recent geopolitical tension has demonstrated that the BRICs and other developing world nations are no longer afraid to trade dollar-denominated assets in their local currencies and this could lead to a long-term waning of the greenback’s strength. Investors would be wise to keep an eye on the 2- and 5-year Treasury bond yield for clues about short- and medium-term movement.

Don’t forget the metals

One asset class that some have called lacklustre over the past six months and earlier is precious metals. Ever since the pandemic struck, gold bugs and analysts alike have been calling a “commodities super-cycle” in which gold is tipped to top $3000. The reality, however, has been very different. Despite record inflation, geopolitical instability, and general economic uncertainty, gold was relatively flat throughout 2022 and the first half of 2023. In fact, until about January of this year, the yellow metal was toying with pre-pandemic price levels. Since then, however, gold is up almost 20% and has already breached its key resistance of $2000 per Troy ounce. The truth, as usual, is a bit more complicated than it looks at first glance. One of the main reasons for gold’s perceived weakness in 2022 was the uncharacteristically strong US dollar. In reality, gold had strengthened over 10% when quoted in euros, but the galloping greenback had virtually wiped out the dollar-denominated asset’s gains. That isn’t to say that gold isn’t looking strong on its own now that the currency market has normalized.

Cryptic clues

Any modern discussion of the market landscape wouldn’t be complete without at least a passing glance at digital assets. We’ll all surely remember the whirlwind boom cycle of 2020-2021, followed by the equally memorable “crypto winter” that saw Bitcoin lose almost 70% from its November 2021 ATH of $64,400. After sliding all the way to $16,529 on the last day of 2022, the first six months of 2023 have been overwhelmingly positive for the original cryptocurrency. Its current price of $31,187 marks an 85% increase in value YTD. Ethereum, too, is up a solid 55% since January, as well as numerous other major altcoins. This would suggest that the worst of the previous bear cycle is well and truly behind the digital assets market. As well as this, a new mining capacity comes online amid a more reasonable mining price of $17,000 per BTC. Institutions also appear to be predicting a bull market in 2023, with weekly capital inflows from investment funds backed by digital assets reaching $199 million last week. Another positive factor for both institutional and retail investment was the filing on 15 June by BlackRock, the world’s largest asset management firm, to list a spot Bitcoin exchange-traded fund (ETF). Much remains to be seen in this still volatile space, but crypto is definitely a much more welcoming sector than it was this time last year.

About Libertex

Part of the Libertex Group, Libertex is an online broker offering tradable CFDs with underlying assets being commodities, Forex, ETFs, cryptocurrencies, and others. Libertex also offers investments in real stocks.

Over the years, Libertex has received more than 40 prestigious international awards and recognitions, including “Best CFD Broker Europe” (Global Brands Magazine, 2022) and “Most Trusted Broker in Europe” (Ultimate Fintech Awards, 2021). Libertex is the Official Online Trading Partner of FC Bayern, bringing the exciting worlds of football and trading together.

Since being founded in 1997, the Libertex Group has grown into a diverse group of companies, serving millions of clients from several countries all over the world.
In Europe the Libertex trading platform is operated by Indication Investments Ltd., a Cyprus Investment Firm regulated and supervised by the Cyprus Securities and Exchange Commission (CySEC) with CIF License number 164/12.

For more information about Libertex visit www.libertex.com

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.77% of retail investor accounts lose money when trading CFDs with this provider. Tight spreads apply. Please check our spreads on the platform. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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« on: July 12, 2023, 03:19:36 PM »

Dual counter system hits Hong Kong. What will it mean for Asian markets?

Much like in the rest of the world, the Asian stock market has had quite a bumpy ride in recent months. After reaching dizzying heights during the pandemic, both the Hang Seng and SSE Composite Index were in freefall until practically the end of 2022. As in the US and Europe, Chinese equities' fortunes began to improve at the beginning of this year, and both of the aforementioned indices are now up 25% and 15%, respectively, from local lows.

But this is by no means the most interesting news to come out of the East of late. That's right. This Monday saw the launch of the much-anticipated HKD-RMB Dual Counter Model, which will see an initial 24 companies start offering yuan counters that will allow investors in Hong Kong to trade the company's stock in both RMB and HKD.

The initial list of early adopters of the new dual counter model includes tech giants like Tencent, Alibaba, and Baidu. This is particularly interesting in light of the years-long tech crackdown on China's tech sector. It seemed like the Chinese Communist Party had set its sights on curtailing the power of these companies, but now all that appears to have changed. Traders and investors will certainly be wondering what this means for Chinese stocks, as well as the yuan and Hong Kong dollar. And while there are no sure things when it comes to the markets, we'll do our best to lay out the landscape.

Why now?

Perhaps the biggest question on people's minds is what is behind the Hong Kong Exchanges and Clearing's decision to offer stock trading in both RMB and HKD. After all, it's not the first time this has been attempted. Many will remember 2012's fated "dual tranche, dual counter" initiative, which failed when only one company adopted it. On top of that, Mainland investors are already able to purchase Hong Kong-listed stocks via the Southbound Stock Connect market access programme.

However, this is a rather inconvenient method of investing for many citizens of Mainland China, and HKEX CEO Nicolas Aguzin is convinced that the interest in the new dual counter model will be overwhelming as more and more companies sign up for the new system over the coming months and years. As he puts it: "The fact that they [Mainland investors] will be able to transact on an instant basis in renminbi […] is a huge difference." It might well take some time until stocks can be purchased seamlessly in RMB, but the HKEX is working closely with regulators and other stakeholders to ensure everything is in place before making a proper announcement.

What might it mean for Hong Kong-listed stocks?

Anybody with even a passing interest in Asian markets will surely remember the 2020-2021 crackdown from both US and Chinese authorities. Washington famously put an end to shady ADRs with the Holding Foreign Companies Accountable Act, which allowed the US Securities and Exchange Commission to delist Chinese companies from American exchanges if domestic regulators were not able to review company audits for three consecutive years.

Meanwhile, Beijing sought to rein in the country's overly powerful tech companies in a campaign that was most remembered for Jack Ma's temporary disappearance and the blocking of the $315 billion Ant Pay IPO. Now that the Chinese tech sector is cowed and unrest in Hong Kong has largely been put to bed, the Chinese Communist Party feels confident in realising its plan to centralise trading of China's stocks within its own sphere of influence. All of this points to a potential resurgence for big names like Tencent, Alibaba and Baidu, but also lesser players like Netease, Nio, and SMIC.

Indeed, the 24 names that have already applied for the dual counter system account for 40% of the average daily turnover of the cash equities market. And with another 1.6 billion potential investors on the Mainland now in reach, the sky truly is the limit.

Don't forget about Forex

As we've already touched upon above, trading volumes are expected to increase exponentially, with the influx of capital from the Chinese Mainland into the Hong Kong exchange anticipated once direct access is available. It can be easy to forget, but wherever securities are traded, so is cash. One of the biggest drawbacks of the RMB in the past has been its command economy context and limited trading potential. The yuan is already up 5% on the US dollar and is expected to continue to move upward for the foreseeable future. This is particularly impressive given the strong dollar we've seen of late amid hawkish Fed policy and strong US Treasury yields.

As of 22 June 2023, the RMB stands at 7.18 against the US dollar. The increased trading volumes associated with this opening up of markets, coupled with Beijing's shift towards trading traditional dollar assets in its own currency, is likely to lead to further strengthening for the renminbi. Add to this the US Federal Reserve's compulsion to pause its monetary tightening and perhaps even transition towards a more dovish policy amid increased economic uncertainty, and we could well see the yuan up towards the key psychological level of 8.00 by year's end.

Trade without borders with Libertex

As a well-respected broker within the CFD trading markets with many years of history. With a vast offering spanning multiple underlying asset classes, Libertex can give you the opportunity to trade CFDs in Forex and stocks, all the way to indices, commodities, and crypto. Whether you think the Chinese market is headed up or down, we have you covered with a choice of long or short positions. You can trade individual stock CFDs like Tencent, Alibaba, and Baidu or more balanced ETFs CFDs like the iShares China Large-Cap. Beyond that, Libertex also offers Forex CFD trading in pairs that include USDCNH and EURCNH. For more information or to create an account of your own, visit www.libertex.com/signup today!

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 85.9% of retail investor accounts lose money when trading CFDs with this provider. Tight spreads apply. Please check our spreads on the platform. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

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« on: July 07, 2023, 01:48:45 PM »

Awarded: Libertex receives German Brand Award 2023

Libertex (https://libertex.com/), one of the leading online trading platforms, has been awarded the German Brand Award 2023 in the "Excellent Brands: Banking & Financial Services" category. The company, which participated in the long-established annual competition for the first time, received the award at the official ceremony at Verti Music Hall in Berlin on 15 June, 2023. The German Brand Award is presented by the German Design Council to companies operating in Germany that have attracted attention through their pioneering and effective brand work, independent projects and extraordinary campaigns. The online broker has already won over 40 international awards throughout its history, with this one being the first from Germany.

The German Brand Award is an independent annual award that recognises successful brand management. The "Excellent Brands" category honours the best products and brands of individual industry sectors. This year, the organisation received applications from around 1,200 companies, agencies, service providers and marketeers, as well as non-commercial and governmental organisations from all sectors, which the German Design Council’s expert panel evaluated to first select admissions and then assign winners in each category. Each year, around 700 guests attend the awards ceremony, including brand decision-makers from large German corporations, agencies, the creative industry, the trade press and category winners.

Representative office in Munich: Libertex strengthens position on the German market

“We are incredibly happy and proud to receive the German Brand Award 2023, as it shows that our work in Germany is bearing fruit", says Michael Geiger, the German-born CEO of the Libertex Group. “With our new representative office in Munich and our partnership with FC Bayern, we wish to further expand our position in the market in the future, so that we continue to be one of Germany’s ‘Excellent Brands’".

"The German Brand Award shows that our hard work is paying off", says Libertex Group CMO Marios Chailis. "All of our branding and marketing is done in-house by our creative team that works tirelessly day after day. Their phenomenal work is also reflected in our recent “Push for More” brand campaign with FC Bayern, which was created as part of our partnership with the club”.

Libertex Head of Brand & Creative, Nino Ilievski at the German Brand Award ceremony on June 15 at Verti Music Hall in Berlin

Nino Ilievski, Head of Brand & Creative at Libertex, adds: "It is always fascinating for me to brainstorm with my colleagues in our internal creative studio and to see how the many imaginative ideas develop into concrete projects. It is such a great honour that our efforts are now recognised with the prestigious German Brand Award."

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« on: July 04, 2023, 01:30:56 PM »

Debt ceiling deal done as both sides of the aisle come together to stave off default

Last week, we discussed the fast-approaching US debt ceiling as a deal between both parties in the US House of Representatives remained elusive. But then the House approved the Fiscal Responsibility Act of 2023 with an overwhelming majority vote of 314-117 on 31 May. The drama still wasn't over, however, as the Senate still had to approve it in time to avoid catastrophe. Well, with mere days to spare before the deadline that would see the world's biggest economy face financial default, the Senate, at last, approved the legislation to lift the debt ceiling in a relatively convincing bipartisan 63-36 vote, and Joe Biden signed the bill into law on Saturday, 3 June.

The much-anticipated agreement will see the debt ceiling suspended until 1 January 2025, and according to the Congressional Budget Office, the new act will generate over $1.5 trillion in savings over the course of the decade ahead. Despite some last-gasp attempts by ultra-conservatives to have 11 potentially devastating amendments adopted, all were rejected in the Senate, and the bill ultimately passed as is. So, what does this mean for world markets, and how should traders and investors react to this news?

Time to restock?

Although the effect on the stock market has been relatively modest since the bill was signed into law – with major US indices like the Dow Jones IA, S&P 500 and Nasdaq 100 registering only modest gains of between 1-2% since the news broke – the impact of the increased debt ceiling cannot be underestimated when it comes to Wall Street. Essentially, market movers never doubted for a second that the legislation would pass. After all, we've already seen the ceiling raised an average of once per year since 2001. As a result, much of the benefit of the debt limit increase was already priced in during the rallies in US equities early in the year. But rest assured, if a deal had not been forthcoming, stocks would have surely tanked hard.

Europe reacted in much the same way, with the Stoxx 600 index gaining 1.5%, while individual sectors like mining and oil & gas seemed to do the best, recording average gains of between 3-4%. Given the long-term suspension of the debt ceiling that the Fiscal Responsibility Act of 2023 entails, the supportive environment for stocks looks set to continue (provided that the Fed backs off on its hawkish policy before year-end). As such, now could be a good time for medium- to long-term investors to increase purchases of discount stocks.

That's oil, folks

As we mentioned earlier, energy and commodities have reacted even more positively to the news. The reasons for the larger jumps in mining and oil & gas are rather complicated, however, and it's not necessarily guaranteed that Brent, WTI and Henry Hub will respond in kind. However, one thing is clear: beyond the general boost that the US economy being saved from default brings for all sectors, the promise of even more supply-side inflation is a growth factor in its own right for these asset classes. After all, energy commodities are exactly that: commodities. If the US debt is free to increase, which it surely will following the temporary removal of this ceiling, the value of hard assets like oil, gas, coal and minerals can only increase. So, what we're seeing is a double whammy of sorts whereby the guaranteed further depreciation of fiat is buoying the prices of these commodities, and the generally positive economic sentiment surrounding the avoidance of default is multiplying this effect.

Most varieties of crude are now firmly above the key $70 a barrel level, with Brent futures rising $1.85 (or 2.5%) to hit $76.13 a barrel and US WTI crude up $1.64 (or 2.3%) to top out at $71.74. All that remains now is for OPEC+ to reach a new deal on production cuts amid Saudi discontent with Russia's failure to reduce supply as agreed at the cartel's previous meeting. If harmony can be achieved, then we would be wise to expect further price gains ahead for oil, especially now the debt limit issue has been put to bed.

Going for gold

At the height of the debt ceiling panic, when it really looked as if a deal might not be forthcoming, there was only one instrument that felt like a safe bet. As usual, gold offers security and an unbeatable (as of yet) store of value potential. So, now that the bill has been passed, does that mean the gold bugs are about to lose out? Well, not exactly. An increase in the US national debt will only mean a weaker dollar in the long run. And what does that mean for the dollar-denominated gold price? You guessed it: more growth ahead.

While the yellow metal is currently more or less unchanged following the deal's announcement (gold, in fact, lost 0.1% in the days following the announcement), this is more of a knee-jerk reaction to the immediate strengthening of the US dollar on the aversion of a potentially devastating default. Over the longer term, it's hard to see how the greenback can avoid losing value as more are inevitably printed and the value of the existing money supply is further devalued. In any event, any serious investor should have some kind of gold allocation to hedge against short-term volatility. However, taking into account both the factors alluded to above and the nascent commodities super-cycle, many analysts are suggesting that gold is a solid buy at present prices.

Trade it all with Libertex

Libertex is a well-respected CFD broker with a long history of providing traders and investors across Europe with access to world markets. With Libertex, you can trade long or short CFD positions on a wide range of popular underlying assets, including major indices like the Dow Jones Industrial Average, S&P 500 and Nasdaq 100; oil and gas vehicles like Brent, WTI and the Henry Hub; and even precious metals like gold and silver. Best of all, Libertex offers some of the lowest levels of commission and tightest spreads in the industry. And because Libertex offers an easy-to-use app, you can keep your entire portfolio in one easily accessible location. For more information about Libertex's available asset classes and investment options, visit www.libertex.com

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 85.9% of retail investor accounts lose money when trading CFDs with this provider. Tight spreads apply. Please check our spreads on the platform. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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« on: June 28, 2023, 12:11:10 PM »

Default diverted as debt ceiling bill draws closer

One of the biggest stories of recent weeks has undoubtedly been the fast-approaching debt-ceiling deadline in the United States. It seems almost impossible to imagine, but the US has nearly reached its $31.381 trillion debt limit, after which there is a real risk of the country being unable to meet its obligations to creditors. The implications of this would, of course, be unthinkable for the world's biggest economy, and markets have been understandably anxious for a resolution to be found. And it looks like disaster might thankfully have been averted as discussions between President Biden and House of Representatives Speaker Kevin McCarthy finally bore fruit this past Saturday.

While the bill remains to be passed by the Senate, the agreement that would see the debt ceiling raised for two years and a cap put on spending passed by the House of Representatives on the evening of 31 May. Before the collapses of SVB and Signature banks, a default was hardly ever discussed, but since then, a kind of "will-they-won't-they" saga has emerged that has had markets in limbo.

And yet, the debt ceiling has actually been increased countless times since its introduction in 1917, including 16 times between 2000-2016, for an average of about one increase per year. That's not to say that this bill's passing is a done deal. One example of a divided government being unable to come to an agreement resulted in the infamous government shutdowns of 1995, 2013 and 2018. However, that scenario is certainly much more likely than a US default. In this article, we'll look at the debt ceiling debacle's effect on stocks, energy and metals and examine what the future might hold for these key asset classes as a debt limit deal is still yet to be officially done.

Taking stock(s) of the damage

After an undeniably awful 2022, US stock markets appeared to start 2023 with renewed vigour as the key S&P 500 and Nasdaq 100 indices gained an average of 20% from November 2022 to March 2023. Then followed a significant dip following the mini-banking crisis of March and early April. However, despite the uncertainty surrounding the debt ceiling crisis, both major indices regained their temporary losses, with the S&P 500 standing at 4,205 at the time of writing, just a hair above its previous peak in late February. The Nasdaq appears to have fared even better, actually cementing a 7% gain on this local maximum to reach 13,007 over the same period.

This would suggest that the stock market has never doubted that a deal would be reached to raise the debt ceiling, as has happened in virtually every other case of an imminent US default. That said, Treasury Secretary Janet Yellen has warned that the potential "substantial financial distress" on the stock market could well be delayed, citing recent volatility as "just the beginning". Since the imminence of the deal became known, however, Dow futures and Nasdaq futures are up around 0.35%, with S&P 500 futures up 0.3%, which hopefully means that stocks will avoid a major move to the downside in the near future.

Oil aboard!

It's been an odd time lately for the oil markets, with many of the dominant market forces becoming less relevant to prices amid price caps and wider macroeconomic pressure, particularly from inflation. Given the already precarious market situation, it's unsurprising that oil should be more reactive to the risk of no debt ceiling agreement being forthcoming. Despite the positive implications of Saturday's milestone, crude still slumped a further 4.4% on Tuesday (30/05) to dip below $70 for the first time in a month, while the world standard Brent lost 4% to hit $74 per barrel. Many oil analysts have blamed this major sell-off on concerns that conservatives in the House of Representatives would try to sink the bipartisan deal agreed over the weekend.

To make matters worse, renewed Russia-Saudi tensions over Moscow's failure to curb production, as agreed, is increasing general scepticism in the energy markets while also ensuring production remains high. Over the longer term, there are serious fears that failure to pass a debt ceiling bill of some kind will lead to a long, deep recession that will see a sustained period of reduced demand for oil. Provided that the supply-side issues can be resolved by OPEC+ negotiations, a positive outcome to the debt ceiling saga in the coming weeks should generate significant gains for the energy resource.

Test your metals

Another instrument that has been making headlines over the past year or so is gold: first for its relative stagnation during the hyper-inflation of 2021-2022 and more recently for its illogical flirtation with the all-time high of $2075 per Troy ounce at a time when stocks were back in bull territory. However, gold has now reacted exactly as one would expect to the news of a breakthrough in the discussions around the debt ceiling bill. Spot gold slipped 0.1% to $1,944.09 per ounce and now hovers in and around the two-month lows hit on Friday. Futures for the yellow metal were also listless at $1,943.30. The initial boon from the Fed's more dovish approach in its recent FOMC meeting has also been nullified as rumours of a further rate hike in June circulate.

This is excellent news, however, for Treasury bond yields, which had already been rising nicely in early 2023 amid a strongly hawkish Fed monetary policy. Then, from 5.05% in March, yields on the two-year note fell to around 4% in May. Given the well-established inverse correlation between gold prices and T-note yields, fixed-income investors will most likely be looking forward to higher rates of return if a deal is finally done and the Fed's promise of continued tightening materialises.

Trade it all with Libertex

Libertex is a well known name on the international CFD market, with millions of clients across EEA and Switzerland. With Libertex, it doesn’t matter what you think is going to happen on the markets because you can go long or short on any of our underlying assets. Libertex offers CFD trading in a wide range of asset classes, including stocks and indices, such as the S&P 500 andNasdaq 100; crude oil like Brent, Light Sweet and WTI; and of course, gold and currencies galore. Try our multi-award-winning app today with ultra-tight spreads and some of the lowest rates of commission available. For more information or to create your very own live trading account today, visit www.libertex.com/signup

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 85.9% of retail investor accounts lose money when trading CFDs with this provider. Tight spreads apply. Please check our spreads on the platform. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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« on: June 21, 2023, 02:13:54 PM »

India to scrap its biggest banknote ahead of harvest season

After positive reports of a national GDP recovery, India is back in the headlines as the Reserve Bank of India (RBI) prepares to withdraw the country's largest denomination note. The 2000-rupee note was only introduced in 2016 but is now being removed from circulation as part of the country's 'clean note policy' to reduce low-velocity banknotes. The note will be phased out gradually over the next four months by September 2023. Many might be wondering why this is significant for world markets. Well, India is not just one of the BRICS group's biggest economies; it's also growing at one of the fastest rates in the world, both in terms of GDP and population.

And it is precisely this massive population that has the power to move markets, particularly when we take into account some specifically Indian factors like a proclivity towards precious metals and large cash-based transactions. With many analysts tipping potential upticks in gold and consumer durables in response to this news, we will be looking at the factors behind these projections and assessing the expected real impact on global markets.

Metal mania

It's a well-known fact that Indians are crazy about physical gold. Indeed, it is far and away the most popular investment vehicle for investors on the sub-continent, with 53% of Indians stating that they are currently invested in gold. When we're talking about a country with a population of over 1 billion people, it's easy to see how a major move one way or the other could have a palpable impact on the global bullion market.

Analysts have suggested that the large amounts of high-value 2000-rupee bills floating around the economy could lead Indians to use up the notes by investing in their favourite long-term instrument, gold. Of course, they will be permitted to exchange them in banks for lower-denomination notes. However, there will be a transaction limit of 20,000 rupees per person. The thinking is that many farmers and other seasonal workers, who often receive large payments in cash at harvest time, will prefer to purchase gold as opposed to digitising their wealth. In any case, the effect on worldwide yellow metal prices will clearly be modest, but it could be enough of a bump to push an already buoyant gold above its key resistance of $2,000 and on to a new all-time high should a genuine bull cycle ensue.

Big spenders

As we have already touched upon above, India is still very much a cash-based economy. Digital transactions have been increasing exponentially in recent years, but huge numbers of participants in this largely agrarian economy still deal almost exclusively in cash, which typically means large-denomination banknotes. Apart from gold and silver, another option many Indians are expected to take when it comes to getting rid of their 2000-rupee notes is purchases of big-ticket items. This could mean anything from high-tech items like smartphones, TVs, and laptops to white goods or even major consumer durables like new vehicles. It's not as if the analysts are suggesting all Indians will walk out of the house one day and buy a brand-new truck, but any purchases of such items that were planned for the next one to two years might well be brought forward as a method of using up some of the soon-to-be-withdrawn banknotes.

With India being a major producer of goods for domestic consumption, this is likely to be very positive for the country's GDP, which could move above 9% for the year as a result. Rising retail sales would also likely be a boon for the stock prices of India's largest conglomerates, like Mahindra, Tata and Reliance.

Not India's first rodeo

We often have a tendency to over-dramatise the effect of such a move by a central bank, but the reality is that India experienced a much further-reaching and disruptive event less than a decade ago. In 2016, the RBI scrapped a full 86% of India's national currency in circulation during its so-called "demonetisation" drive that saw all Ghandi-series 500- and 1000-rupee notes withdrawn over a very short period. This time round, only one note will be removed and one that is much less frequently exchanged than the two mentioned above. The Reserve Bank of India is also providing very clear guidelines and FAQs, a move that is expected to greatly reduce panic compared to six years ago.

Aside from the existence of a sufficient supply of 100- and 500-rupee banknotes for those who are heavily reliant on cash transactions, the rapid adoption of digital payments across all demographics will also minimise the impact of the 2000-rupee note's withdrawal. In terms of the rupee itself, the withdrawal is expected to have little to no effect on the exchange rate in the long term. There will, of course, be a temporary increase in demand as notes are exchanged, as well as a slight drop in supply (around 10% of the total money supply), but this impact is projected to be minor and short-lived.

Trade the news with Libertex

Whatever the latest developments in world markets are, you can always find an angle to trade with Libertex. Because Libertex offers a wide variety of underlying assets for CFDs from numerous asset classes, including commodities like gold and silver, all the way to stocks and traditional currency pairs, you can trade any news with us. So, whatever the effect of the RBI's note withdrawal, you can cover your bases with long or short CFD positions in gold, silver, and much more. Beyond these, our intuitive and multi-award-winning app supports trading for lots of other underlying assets, from stocks and ETFs to options, futures and even crypto. For more information, visit www.libertex.com today!

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 85.9% of retail investor accounts lose money when trading CFDs with this provider. Tight spreads apply. Please check our spreads on the platform. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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« on: June 13, 2023, 08:48:09 AM »

Libertex launches “Push For More” Brand Campaign with FC Bayern

Libertex are launching Push For More, a brand new campaign in partnership with FC Bayern, the recently crowned 2022/2023 Bundesliga Champions. The campaign aims to engage and inspire people around the world to act with more confidence, trust and self-belief in order to achieve success.

The new brand campaign is the first we’ve created utilising FC Bayern players since we announced a multi-year partnership together in August 2022, which saw us becoming the first Online Trading Partner of FC Bayern for CFD and foreign exchange trading.

What’s in the campaign?

The joint campaign launch video features current FC Bayern stars Matthijs De Ligt, Eric Maxim Choupo-Moting and Leroy Sané, all wearing the new 23/24 season home kit.

The players explain how three basic principles (discipline, strategy and skill) have led them to where they are today, and how those qualities have pushed them to achieve success as a team and as individuals on and off the pitch. De Ligt talks about how mastering the art of discipline creates a sense of unity, Choupo-Moting explains why strategy is key to unlocking your full potential and Sané describes why skill gives you the ability to find the “edge” to achieve success.

Take a look at the full video, which is also available to watch on both Libertex and FC Bayern’s official websites and social media channels.

Words from our CMO, Marios Chailis:

“Libertex is more than just a trading platform, and FC Bayern is more than just a football club. Yet both organisations share a lot more in common than most would initially think. This campaign, the first collaboration of this kind, shines a light on this.

Combining the fast paced and exciting worlds of football and financial services, we share core values, such as trust, teamwork and a winning mentality. It was important for us to create something that highlights the synergies between both brands. Using inspirational and engaging content with first-team players, our Push For More campaign will help us successfully elevate and raise awareness of the Libertex brand utilising FC Bayern’s channels, in Germany and beyond.

FC Bayern are the benchmark for perfection and success on the pitch, which is something we want to apply to our millions of customers around the globe. We’re incredibly proud to continue our partnership with FC Bayern for the foreseeable future.”

FC Bayern x Libertex

Our multi-year sponsorship with FC Bayern currently runs until 2025 with the collaboration encompassing numerous activities such as visibility across FC Bayern’s social media channels, as well as a presence on the LED advertising boards at home matches in the Allianz Arena.

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

« on: June 07, 2023, 01:08:10 PM »

Gold flirts with all-time high as strong fundamentals persist

Gold has been making headlines of late after breaking through a key psychological level as it once again approaches its August 2020 all-time high of $2075 per Troy ounce. Indeed, the yellow metal has been steadily rising since the start of the year, and the reasons behind its good fortunes are numerous.

Beyond runaway inflation, banking sector fears, and geopolitical insecurity, there are also more subtle factors driving up the gold price, all of which we will look at in more detail in this article. But what most investors and traders would like to know is: Will this run continue, or have gold’s gains already been made? While we can’t answer this question for sure without a crystal ball, we can provide an overview of what is behind the precious metal’s growth this year and assess how likely these are to remain relevant going forward.

Crises everywhere

If you believed everything you’ve seen in the news recently, you’d be forgiven for thinking the end of the world was nigh. From the ongoing geopolitical uncertainty now on virtually every continent of the Earth to the economic uncertainty embodied by the latest US banking crisis, the future looks very bleak, indeed. First, we had the collapse of SVB and Signature Bank in the US, then there was the last-minute rescue of Credit Suisse in Europe, and now there are fears that even more high-risk lenders could be next in line.

While this kind of news is bad for most assets, for safe harbours like gold, it’s music to investors’ ears. At its highest level this year of $2065, gold had gained over 15% YTD, and though it has since corrected down slightly, the long-term perspective seems as if the way is paved for future rises in 2023. Some were surprised that we hadn’t seen this kind of movement last year when inflation was well into the double digits while gold remained fairly stagnant, but as is often the case in financial markets, not everything is exactly as it seems…

Counting those dollars

We will all surely remember the hyperinflation of last year all too well. It seemed as if prices would never stop rising, and, as any gold bug will tell you, high levels of inflation virtually always translate to increases in precious metal prices. But gold’s dollar price was virtually flat for the entirety of 2022. Why? Well, this was also a time of historic strength for another haven asset, the US dollar.

The greenback famously rose above parity with the euro, for one, a feat unmatched since the early 2000s. And since gold’s price is almost always quoted in USD, much of the real-world gains made by gold were masked. Now that the dollar is back at pre-pandemic levels against the other majors, all of this previously unseen growth is now being revealed. What’s more, the ongoing uncertainty and high interest rate environment mean that there is still an overarching trend towards safety, which is further buoying gold prices this year. So, will the USD remain at more stable levels going forward, or could we see further strengthening in the medium-to-long term?

Fed up with inflation

To answer that, we need to look closely at the single most influential player when it comes to the dollar’s dynamics: the US Federal Reserve. As we’ve already touched upon, gold is largely up due to inflation, the exact same market force that the Fed has been trying to combat with aggressively hawkish monetary policy. Unfortunately, the recent mini-banking crisis has forced the US regulator to cut its tightening cycle short of its target rate of 6%. Though it did announce a 25 bp increase to 5.25% in its latest policy decision, Powell’s rhetoric was much more restrained in April and May, as all guidance about future hikes disappeared from post-meeting comments.

A side-effect of the Fed’s tightening has been higher US Treasury bond yields, the inverse relationship of which with the price of gold is well-established. Now that the Fed has been forced to accept a more dovish wait-and-see approach, yields are falling sharply. For example, the two-year T-note yield now stands at a hair above 4% compared to 5.05% in March. If this trend continues, those looking to hedge against inflation will pour into gold, thus increasing its value over the medium term.

Trade precious metals with Libertex

Libertex is an experienced CFD broker with a long history of connecting traders and investors with the financial market. Beyond forex and equities, Libertex also offers CFDs in a range of precious metals, including silver, platinum, palladium, and, of course, gold. Since Libertex allows its clients to trade both long and short positions, you can put your money to work, no matter what you think the future holds for gold. Best of all, CFD trading means you don’t have to purchase physical metals to profit from any positive price changes, and our multi-award-winning, one-stop trading platform allows you to hold your entire portfolio in one manageable location. Enjoy ultra-tight spreads and some of the lowest commissions around when you become a Libertex client. For more information or to create your own account today, visit www.libertex.com/signup

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 85.9% of retail investor accounts lose money when trading CFDs with this provider. Tight spreads apply. Please check our spreads on the platform. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke

Crypto-related Sites / Re: Libertex was recognized as the best trading application and cryptocurrency broke