Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

The vast majority of retail client accounts lose money when trading CFDs.

You should consider whether you can afford to take the high risk of losing your money.

Important Notice - Fraud awareness
Important Notice - Scam alert
54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
ATFX

FCA License No: 760555

ATFX-search-icon
Client Portal
Start trading
rch

Stock sell-off before release of CB Consumer Confidence report

The stock market had experienced a significant sell-off during the Asian session today because of the uncertainties over the Conference Board (CB) Consumer Confidence report to be released during the European session today.

Some investors had preferred to withdraw their investment as they await the outcome of this report which will have a substantial impact on the US dollar and stock markets.

All US stocks lost significant value during the Asian session today. 

#Google is down by 1.82%, priced at $2,316.67. 

#Microsoft is down by 1.05%, priced at $264.89.

#Shopify Inc is down by 3.12%, priced at $373.21.

#Tesla is down by 0.33%, priced at $734.75.

#Netflix is down by 0.92%, priced at $189.10.

#Amazon is down by 2.98%, priced at $113.19.

#Walt Disney (DIS) is down by 1.20%, priced at $96.61.

The current decline in stock prices could be the right time for new traders to invest in stocks. The opportunity for old stock traders would be to add more shares to their portfolios as prices will undoubtedly return higher soon.

What is the CB Consumer Confidence report, and how does it affect the stock market?

The Conference Board (CB) Consumer Confidence report is a composite index that measures the average household spending. Which is used to measure the consumer's confidence in the economy. A survey of over 3,000 households in the US and obtaining a response from respondents on the degree of confidence they have in the economy and further requesting them to rate the relative level of the current and future economic conditions of the country, including labour availability, business conditions and possibilities for future growth. In the end, an index calculation of this response is provided, which serves as a leading indicator of Consumer Confidence in the economy seen through their spending rate.

A shallow reading from this report below 100.0 is considered a bad sign for the economy as it shows a lack of confidence. This will primarily affect the stock market as many investors will be forced to withdraw their investments based on a lack of confidence in the economy.

On the contrary, a high reading from this report is perfect for the economy and stock markets. This gives investors more confidence to expect a bumper yield from their investments over time as the economy is appreciated.

How can one take advantage of the current dip in stock price to make profits?

It is a widely known principle in the equity market that every dip is an opportunity for new investors. This is based on the assumption that prices are sure to bounce back after each fall.

Traders seeking to take advantage of the current dip in the stock market can register for a trading account with an ATFX broker that provides access to the stock markets. This broker helps traders maximise their profits by allowing them to trade the US stocks as CFDs. Of course, CFD trading is an easy way of making huge profits by taking advantage of the high leverage offered by this broker to trade any stock of one's choice.

Last Updated: 28/06/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

Recent news

Recent news
GBPUSD turns bearish ahead of GDP report

GBPUSD started the week at $1.227, and has fully reversed its bullish trend. The bulls qui...

Recent news
Gold (XAUUSD) prices face rejection at $1807

The precious metal gold faced some rejection after reaching $1,807 on Wednesday, following...

Recent news
US dollar slides downwards amidst July CPI cool down

July's Consumer Price Index (CPI) came out lower. The US dollar dominance in the forex mar...

Recent news
Bitcoin prices jump above $24K as US inflation cools down

The crypto market witnessed a strong bounce yesterday. Bitcoin (BTCUSD) prices led the way...

Recent news
USDCAD holds above $1.2884 as market awaits for US CPI

USDCAD has sustained above its support level of $1.2884 from yesterday. The price is seen ...