Hi Everybody,

Man, it’s hot outside!

Over the past week, we’ve felt temperatures that simply don’t seem normal. I mean, it’s great to enjoy the summer and all but this is just ridiculous.

You may already know that the world is heating up, we’ve seen the data before, but what you may not have known is how economics affects the weather.

Analysts at Harvard University have recently put together a study that suggests that the world may be getting hotter at a faster rate, an extremely scary thought!

There’s an excellent article on in along with a short video from bloomberg, you can see it here.

Mati Greenspan
eToro, Senior Market Analyst

Today’s three letter Highlights

  • G20
  • DOW
  • NFP

Please note: All data, figures, and graphs are valid as of July 7th. All trading carries risk. Only risk capital you can afford to lose.

Market Overview

All eyes on Germany today. The G20 meeting will bring together the most unlikely political leaders. Some of them, like Putin and Trump will (allegedly) be meeting for the first time.

Everybody has their own agenda of course. Trump will want to talk about North Korea and how China needs to step up their game while Jinping will want to push the pressure back to the US.

Meanwhile, the host, Ms. Merkel desperately wants to get everyone’s attention on climate change.

The weather in Hamburg today is forecast to be 19 degrees but I have a feeling things are going to be a fair bit hotter than that.

Stocks on Fire

…but not in a good way. Indexes across the world are blinking red. Some of them are as much as 1% down in the past 24 hours.

The Dow Jones shed 158 points yesterday and all sectors seem to be performing poorly.

However, looking at the bigger picture the recent declines are rather mild. Perhaps some worry about the Fed unwinding or the G20 this weekend.

Here’s the Dow Jones over the past 5 years. As you can see, the recent declines are barely noticeable.

Dale Doust is a stock investor on our platform and has some extremely positive things to say about the market right now.

For Dale’s full portfolio update, click here.

Jobs Day

Today we’ll get the monthly jobs report from the United States. Those of you who’ve been in the market for a while know that this is one of the best trading opportunities each month.

Analysts are expecting to see an addition of more than 170,000 jobs added to the US economy in the month of June, which is plenty more than the Fed feels is necessary.

The unemployment rate is forecast to stay steady at 4.3%, but the average hourly earnings should tick up by 0.3%, which would really be fantastic.

Overall, a 4.3% unemployment rate is fantastic. It’s actually the perfect sweet spot. There are enough people unemployed for firms to have a pool to hire from and promote a competitive market.

What to watch for?

Look at the Dollar. The USDollar has been under pressure since the beginning of the year. Recently it bounced off the 95 points level. Question is, do we buy into the lows?

Well, if Trump is able to get his policies in gear, it may well be a good idea. Personally, I’d wait for the trend to turn before getting back on the Dollar train.

Have an amazing weekend!

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