Weekly Market Recap – June 17, 2022

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Weekly Market Recap – June 17, 2022

Aiming to stem inflation, the Federal Reserve raised interest rates by three-quarters of a percentage point on Wednesday; 1994 was the last time the central bank made a move of that magnitude. The Bank of England raised rates one-quarter point, pursuing a policy more cautious than the Fed. The average rate for a 30-year mortgage rose to 5.78%, its biggest one-week increase since 1987; it was 3.02% last June.

60 million Americans were under extreme heat warnings during the week, with high temperatures breaking daily records in multiple cities. Yellowstone National Park was closed to the public, due to historic rainfall that washed away roads and bridges. This was the first time in the park’s 150-year history that flooding forced it to close. In 2020 the pandemic caused a two-month closure, and in 1988, wildfires resulted in a five-month shutdown.

Monthly economic statistics released during the week, compared with the prior month were as follows: retail sales -0.3% vs. +0.7%, business inventories +1.2% vs. +2.4%, building permits 1.70 million vs. 1.82 million, housing starts 1.55 million vs. 1.81 million, industrial production +0.2% vs. +1.4%, capacity utilization 79.0% vs. 78.9%, and leading economic indicators unchanged at -0.4%. Weekly statistics for initial jobless claims were 229,000 vs. 232,000, and continuing claims were unchanged at 1.31 million.

Stocks tumbled further on recession concerns, except for an upward blip on Wednesday in reaction to the rate hike. For the three indices we track, Friday’s final levels were: DJIA at 29,888.78 (-4.8%), S&P 500 at 3,674.84 (-5.8%), and the NASDAQ Composite at 10,798.35 (-4.8%). Volatility soared in equities, reflected in the CBOE VIX jumping to 31.13 (+12.2%). In currencies, USD Index futures went out at 104.488 (+0.5%). The commodities sector plummeted 6.4% according to the S&P GSCI’s 753.61 close. Bitcoin sank further towards $20,000 for the first time since December 2020, with the cryptocurrency ending the week 72% below its nearly $69,000 November high.

Weakness prevailed on the metals futures charts for both the precious and industrial categories. Settlement prices and weekly percentage losses were as follows: gold at $1,840.60 (-1.9%), silver at $21.587 (-1.6%), platinum at $930.20 (-4.2%), palladium at $1,798.70 (-5.7%), copper at $4.0135 (-6.5%) and aluminum at $2,498.00 (-6.8%).

The wild intercontinental discrepancy in the natural gas sector of the energy futures market was one for the record books. ICE TTF Dutch gas skyrocketed 42.8% for the week in direct response to Russia’s action of halting exports to western European customers. On Tuesday, Gazprom’s chief executive said: “our product, our rules” after Russia’s gas supply to Germany was cut in half. July TTF futures ended the week up at €117.738 per MWHr. Stateside, however, the NYMEX nat gas contract for July plummeted 21.5% for the week, beginning with the reaction to Tuesday’s announcement that the aftermath of the June 8 fire at the Freeport liquid natural gas terminal in Texas would completely halt LNG exports to Europe until September. This was a major bearish supply-side signal for traders, sending the July contract down to $6.944 per MMBtu. The petroleum sector of the energy markets was less turbulent. There was a steady decline across the board, partially attributed to growing recession woes and higher interest rates. Settlements and net weekly percentage losses were as follows: WTI crude at $109.56 per barrel (-9.2%), Brent crude at $113.12 (-7.3%), heating oil at $4.3398 per gallon (-0.6%), and RBOB gasoline at $3.7930 (-9.1%).

The contracts on our list of nine agricultural products ended the week with a score of four up and five down. Those in the red were: soybeans at $17.02 (-2.5%), wheat at $10.34¼ (-3.4%), coffee at $2.2765 (-0.5%), sugar at 18.60¢ (-1.4%), and cotton at 143.45¢ (-1.1%). The gainers were: corn at $7.84½ (+1.5%), cocoa at $2,387 (+0.1%), live cattle at 136.575 (+0.3%) and lean hogs at 107.875 (+4.0%).

 

Futures Referenced in Market Recap

Exchange Commodity Contract Month
CME Live Cattle August
CME Lean Hogs August
CBT Soybeans July
CBT Corn July
CBT Wheat July
ICE Coffee July
ICE Cocoa July
ICE Sugar May
ICE Cotton May
ICE Brent Crude August
ICE Dutch TTF Gas July
ICE USD Index September
NYMEX WTI Crude July
NYMEX ULSD (Heating Oil) July
NYMEX RBOB (Gasoline) July
NYMEX Natural Gas July
NYMEX Platinum July
NYMEX Palladium September
COMEX Gold August
COMEX Silver July
COMEX Copper July
LME Aluminum 3 Mo. Forward

 

Current Standings​

2022 World Cup Championship of Futures Trading®
RANK NAME NET RETURN LOCATION
1 Sergio Angiuli 275.7% Italy
2 Stefano Serafini 217.2% Italy
3 Antonello Camiletti 171.5% Italy
4 Marco Vironda Gambin 130.3% Italy
5 Fabio Viazzo 118.4% Italy

January 1, 2022 – July 1, 2022


2022 World Cup Championship of Forex Trading®​
RANK NAME NET RETURN LOCATION
1 Patrick Nill 144.7% Germany
2 K. Takegawa 125.6% Japan
3 Jeff Xie 78.1% Canada
4 Thomas Helling 67.8% Germany
5 Eik Baumgarten 27.7% Germany

January 1, 2022 – July 1, 2022


2021-2022 Global Cup Trading Championship​
RANK NAME NET RETURN LOCATION DIVISION
1 Kevin Stufflebeam 392.9% USA Futures
2 Antonio Ferlito 133.2% Italy Futures
3 Patrick Nill 94.5% Germany Forex
4 Brent Carlile 66.3% Netherlands Futures
5 Philipp Kozalla 64.1% Germany Futures

June 1, 2021 – May 31, 2022 – Final Pending Audit

Trading futures and forex involves significant risk of loss and is not suitable for everyone. Past performance is not necessarily indicative of future results. World Cup Championship (WCC ) accounts do not necessarily represent all the trading accounts controlled by a given competitor. WCC competitors may control accounts that produce results substantially different than the results achieved in their WCC accounts. WCC entrants may trade more than one account in the competition. CME Group is the trademark of CME Group, Inc. The Globe logo is a trademark of Chicago Mercantile Exchange, Inc.

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