What is CFD Trading?

CFD trading is a method that allows individuals to trade and invest in assets by engaging in a contract between them and a broker, instead of acquiring assets directly. Traders and brokers agree among themselves to imitate market conditions and settle differences between themselves when positions are closed. CFD (short for “Contract for Difference”) offers traders and investors the opportunity to profit from price movements in financial markets without owning the underlying instrument

Summary

  • Asian stock markets rallied on Tuesday as investors remained focused on global vaccination programs and dispelled concerns about hedge fund defaults that hit international banking stocks overnight. European stocks are likely to open higher with Euro Stoxx futures up 0.35% and UK FTSE futures 0.33% higher. Sentiment among Asian investors was mixed at the start but turned positive in later sessions with most of the region’s major markets trading higher. MSCI index of Asia-Pacific stocks outside Japan is up 0.6% higher, while mainland China’s CSI300 index is up 1%
  • Chinese stocks rose more than 1% on Tuesday, supported by new energy and health care stocks, as investors cheered corporate earnings. The CSI300 Index rose 1.1% to 5,102.07 points at the end of the morning session, while the Shanghai Composite Index rose 0.6% to 3,455.44 points. Leading the way up, the CSI300 new energy index and the CSI300 health care index rose 1.9% and 1.8%, respectively. The Hang Seng Index rose 1.2% to 28,672.76 points, while the Hong Kong China Enterprises Index rose 1.1% to 11,063.61. The Hang Seng technology index and the Hang Seng industrial index rose 3.2% and 2.2%, respectively. Beijing approved a major overhaul of Hong Kong’s electoral system on Tuesday, a senior politician working with China’s parliament on issues related to the former British colony’s mini-constitution told Reuters
  • For now, it’s more of a rebound after recent market corrections, Huaxi Securities analysts said in a report, adding that cyclical blue-chip firms with low valuations and good cash conditions are relatively safe for investors. Sino-US tensions and tightening liquidity expectations have stifled risk appetite in the A-share market, while US Treasury yields could rise to around 2% in the future, limiting market rebounds, brokers added
  • US futures fluctuate as traders assess Wall Street’s broader exposure, while European contracts rise. Earlier, the S&P 500 Index lifted from lows after President Joe Biden’s announcement that 90% of adults will qualify for the Covid-19 vaccine next month. The ten-year Treasury yield rose to 1.74%, and the five-year hit a year high. The Australian benchmark yield jumped 10 basis points. The US dollar remains stable
  • Sentiment on the movement of the Euro (EUR) will continue to be driven by the news about the Covid-19 situation in the European Union (EU). Signs of increasing Covid-19 infection across Europe will further weaken the EUR / USD exchange rate
  • The global economy’s improvement in GDP growth prospects, making it Dollar-negative, and the market sees it as more important than the increase in nominal US bond yields, which is the catalyst for Dollar-positive ‘. These two catalysts are used as benchmarks for the formation of sentiment in the financial market in short and medium terms trading, pay attention to the fundamental news based on these two catalysts
  • Gold prices slipped on Tuesday to their lowest level in more than two weeks, weighed down by a strong US dollar and Treasury yields as expectations of a fast-growing economic turnaround with vaccination rates gaining traction. Gold bullion, often sought after as a safe store of value in times of economic turmoil, is sensitive to increasing yields when they increase the opportunity cost of holding non-yielding gold. Spot gold was down 0.3% at $ 1,706.43 an ounce by 0525 GMT. Earlier in the session, bullion touched $ 1,704, the lowest since March 12. US gold futures fell 0.4% to $ 1,707.30 an ounce
  • Oil prices edged up on Monday after Reuters reported that Russia would support stable oil production from OPEC + ahead of a group meeting

Market Analysis SP500

A steady weakening below the support level 3927/3911 will be the initial signal for a test of the support 3837, 3795, 3771 and possibly a test of the strong support 3745. A steady gain above the 3955 level could trigger a rally at the highs of 4020 and 4055. Buy levels : 3830-3770, Sell levels : 3970-4020

Market Analysis Dow Jones

The level of 33627 will be the target of the highest price dow. The Dow Jones consolidation will be triggered by a steady weakening below the levels 32730, 32440 and 32355 to test the support at 31800, 31705 and 31317. Strengthening will still target the 33287 and 33627 levels as the last levels to aim for the Dow in its strengthening rally. Buy levels : 32750-32400, Sell levels : 33300-33600

Market Analysis Nasdaq

A stable weakening below the strong support levels 12940 and 12666 will trigger a weakening rally at the Nasdaq levels at 12460, 12246 and 11600. A steady gain above the 12885 and 13005 levels will trigger a test of resistance levels 13375, 13670 and new highs around 14066. Buy levels : 12260-11600, Sell levels : 12995-13210

Market Analysis Hangseng

Levels 28610 and 28720 will hold the rally rate of strengthening zinc hangs as well as ideal levels for selling at high prices. A steady weakening below the support level 28015 will trigger a rally to the 27430 level, weekly strong support at the 26735 level. A steady gain above the 28610 level will trigger a rally at the 28720, 28890 and 29000 levels. Buy levels : 27600-27260, Sell levels : 28650-28800

CFD US Sheet

Starbucks Corporation (NQ.SBUX) (Volume  10.349,36 K  52 Wk Range  50,02 – 95,93)

Overview

  • Starbucks Corporation currently has a negative book value but is trading at a higher Price / Asset ratio (4.22) than its median counterpart (1.63)
  • The book value of SBUX-US equity is not positive and indicates that ROE versus P / E analysis is not meaningful to determine whether the company has an operating advantage or growth
  • Annual revenue changes in line with companies selected but lags behind in terms of revenue, implying that firms are cost conscious and selective about spending on growth
  • The company’s relatively low gross and pre-tax margins indicate an undifferentiated product portfolio and less control over operating costs compared to peers
  • While SBUX-AS’s earnings growth has been around the median of its peers in recent years, the market appears to be seeing faster growth ahead and giving its shares a higher median P / E ratio than peers
  • SBUX-US has the financial and operating capacity to borrow quickly

Facebook Inc (NQ.FB) (Volume  18.488,83 K  52 Wk Range  137,1 – 304,67)

Overview

  • It is trading at a lower Price / Book multiple (5.46) than the median counterpart (19.29)
  • The market expects FB-US to grow more slowly than its peers and its median ROE to decline
  • FB-US has a relatively high profit margin when operating with a median asset turnover
  • The change in annual earnings (relative to peers) is better than the change in earnings (relative to peers), implying that the company is more focused on revenue
  • FB-US’s current return on assets and over the past five years indicates that its relatively high return on operations is sustainable
  • The company’s relatively high gross and pre-tax margins indicate a different product portfolio and tighter controls on operating costs compared to peers
  • While FB-US revenue growth in recent years has been around the median peer, the below-peer median P / E ratio suggests that the market is likely to see the company’s long-term growth prospects fade
  • The level of a firm’s investment in capital indicates that it is likely to underinvest in the business with above average returns
  • FB-US has the financial and operating capacity to borrow quickly

Walmart Inc(NQ.WMT) (Volume  7.608,08 K   52 Wk Range  102 – 153,66)

Overview

  • Current Price / Book of 5.09 is about the median across its peer group
  • The market expects WMT-US to grow at the same rate as its peers and to maintain the median return it has produced today
  • WMT-US’s average net profit margin and relatively high capital efficiency provide some operating leverage
  • Changes in annual earnings (relative to peers) are better than changes in earnings (relative to peers), implying that the firm is more focused on earnings
  • WMT-US’s current and over the past five years return on capital is around the equivalent median and suggests that it lacks any particular operational advantage over peers
  • The firm’s margins are around the median of peers and do not represent any price benefit or operating cost advantage over peers
  • While WMT-US earnings growth has been below its peers’ average in recent years, the market still gives shares a P / E ratio that hovers around its median equivalent and appears to see the company as a long-term strategic bet
  • The company’s equity capital investment program shows that the company is underinvesting in the business that produces an equivalent average return
  • WMT-US has the financial and operating capacity to borrow quickly

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The rate and other information rendered herein by education & analysis PT Soegee Futures has been obtained from sources we believe reliable, but we can’t represent that they are complete and accurate. We are not responsible to any offer to sell or solicitation of an offer to purchase base on the rate and information contained 

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