June results saw profits dipping slightly from May on roughly the same level of volume. Revenues were concentrated in the first half of the month primarily driven by a drop in gold and indices. The last two weeks of the period brought relative flat returns as markets entered range. There was also a large-scale selloff in a range of cryptocurrencies throughout June, resulting in bitcoin dipping below $20,000 for the first time since 2020.
*Average Daily Volume represents the daily volume from ISRA customers for each day of the month divided by the average daily volume for the month. Each day is represented as a percent of the average.
** Average Daily B Book PnL represents the daily B Book PnL from ISRA customers for each day of the month divided by the average daily B Book PnL for the month. Each day is represented as a percent of the average.
Source: IS Risk Analytics Database. Past Performance is not necessarily indicative of future results
Chinese President Xi Jinping promised “more forceful” measures are in the works in order the revive the country’s economy and meet economic growth targets for the year. Those targets include GDP growth at 5.5%, but most analysts are currently projecting a far lower result. Covid related lockdowns continued to ease throughout June, but the President reiterated that control of the virus will remain a top priority of the government.
Following a string of scandals and numerous resignations by members of his party, UK Prime Minister Boris Johnson stepped down as leader of the Conservative Party in early July, thereby clearing the way for the nomination of a new Prime Minister. Johnson will remain in office until a replacement is in place, which could take months. His opponents continue to push for him to leave immediately.
The US Federal Reserve continues to focus on inflationary pressures and is expected to take more moves to cool down the US economy. Expectations currently are that the fed funds rate will increase by another 1.75% over the next four policy meetings to end the year above 3%. The Fed continues to work towards a “soft landing” and does not believe the moves will necessarily drive the US economy into a recession.