As we dive into the 27th week of 2023, it is the start of a new week, month, quarter, and the second half of the year. The market is buzzing with anticipation.
And, to add to the excitement, this week is shorter because of the July 4th holiday, making Monday a gap day. With so much happening, let’s not waste any time and get straight into the seven things you should watch in the markets next week:
1. A Unique Start to the Week
This week is unique as it marks the start of a new week, month, quarter, and the second half of the year. And it’s a short week due to the July 4th holiday, meaning that Monday is a gap day. As traders get back to their desks after the long weekend on Wednesday, July 5th, expect the markets to react in response to the accumulated news.
2. Crypto: ETF Hope vs. Crackdown
The crypto market is caught in a tug of war between the hope for approval of crypto ETFs and the crackdown by US regulators. This ongoing battle has the potential to create significant volatility in the crypto markets. Keep an eye on any announcements or rumors about ETF approvals or increased regulation, like we have seen on Friday with SEC looking for further clarifications.
3. FOMC Minutes
On Wednesday, the Federal Reserve will release the minutes from its most recent FOMC meeting. The U.S. central bank held interest rates steady after hiking them 10 times consecutively since March of the previous year to curb four-decade-high inflation. Now, traders project almost a 90% chance of a 25 basis points hike at the next policy meeting in July, according to the CME Group’s fed funds futures data. I am not expecting much movement on Wednesday though, since everyone is expecting this and the minutes shouldn’t show anything else.
4. Tesla’s Delivery Reports and Tech Results:
Later in the week, we’ll see Tesla reporting its delivery numbers. The question is whether these will justify the recent rally. Keep a keen eye on this, as well as the rest of the tech industry’s Q2 results – particularly companies working in AI. Their performance could set the tone for the tech sector’s direction in the 2nd half of the year and Tesla’s performance, may give us an indication of where we are going.
5. Escalations in France:
The situation in France is escalating, and the question is whether this will spread to the rest of Europe. Keep a watchful eye on the news and how European markets react. Turbulence in this region could potentially ripple through global markets.
6. Russia Conflict:
Any updates regarding the conflict with Russia will be crucial. The possibility of a fightback could potentially impact global politics and markets. Watch out for news from this front that could affect energy markets, defense stocks, and overall geopolitical stability.
7. DeFiChain Updates:
DeFiChain is set to announce their mainnet node software and a hardfork date two weeks later. Meaning, if they announce the node to come out mid-July, we will likely see mainnet going live in the 3rd/4th week of July. On Testnet, DeFiChain’s ecosystem is booming with many projects in development already. Birthday Research, our R&D department, plans to run ads on the Lightwallet and DefiScan explorer via a new token called ADS, which people can acquire by burning DUSD and DFI. Many other projects are also planning to do this, making it an exciting time for DeFiChain
These are the key market movers to keep an eye on in the coming week. As always, stay vigilant, stay informed, and let’s look forward to another week of market action!
PS.: Sadly, my marathon training (I ran over 300km in June) took a toll on my hamstring… I am on a training pause right now… Fingers crossed this gets better.
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