Risk-off trading took hold on Wednesday as global indices started falling lower led by the Nasdaq in the US Open. Lofty valuations and a late-stage cycle always meant that global indices were vulnerable to a correction. Elon Musk sent Bitcoin lower from the start of the week as Tesla announced that it would no longer be accepting Bitcoin as payment due to the environmental concerns involved with mining Bitcoins. At one stage price was down +25% on the week! This drop provides an important lesson for traders. Never let a trade turn into an investment, it can result in horrendous losses. Always manage risk as unexpected events can and do occur.

Other key events from the past week:

Key events for the coming week:

  • NZD: Interest Rate meeting, May 26: The last CPI data print surprised to the upside for New Zealand. Investors will be watching carefully for any hawkish shifts from the meeting to potentially send the NZD higher next week.
  • Nasdaq: Is a correction due? May 27: Investors will be watching the Nasdaq very closely this week. Remember that tech stocks are highly valued and despite decent Q2 earnings recent rallies in the Nasdaq have been very limited.