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Are we on the verge of a No-Deal Brexit? - EMEA Brief 21 Mar

The EU has indicated that Theresa May needs to get backing from parliament on her Brexit deal before they agree to delay the UK's withdrawal from the EU. The Prime Minister is heading to Brussels today for the European Council meeting to try to force an extension in order to avoid a no-deal scenario. US bank stocks traded lower yesterday after the Fed's announcement that there will be no rate hikes in 2019, Goldman was down 3.4% whilst BoA, J.P. Morgan Chase, Citigroup and Morgan Stanley

GeorgeIG

GeorgeIG

APAC brief - 21 Mar

Market action proves it again: this market hinges on the Fed: The US Fed has proven itself as the most important game in town for traders. The FOMC met this morning, and lo-and-behold: the dovish Fed has proven more dovish than previously thought; the patient Fed has proven more patient that previously thought. Interest rates have remained on hold, but everyone knew that was to be the case today. It was about the dot-plots, the neutral-rate, the economic projections, and the balance sheet run-of

MaxIG

MaxIG

Luxury leather or Yellow Vest? - EMEA Brief 20 Mar

Gold prices edged lower as the yellow metal’s rally might be over. Spot contracts hit $1306 at 6:00am GMT on the IG Web Trading Platform. The safe-haven appeal of the gold bullion seems to fade as investors get more bullish on a possibly incumbent US-China trade deal. However, according to Goldman Sachs the combination of a pause in interest rate hikes by the Federal Reserve and more robust growth in emerging markets could weaken the US dollar and support the gold price. As palladium hit

IG-Andi

IG-Andi

APAC brief 20 Mar

Another trade-war headline downs sentiment: There’s some news floating through the wires that sentiment has taken a hit overnight courtesy of some unfavourable trade-war headlines. It’s been reported that Chinese officials aren’t co-operating with their US counterparts, as it applies to certain sensitive elements of trade-negotiations. The S&P500, which had been developing some intraday momentum prior to the release, has retraced throughout trade, consequent to the news. It’s closed flat for

MaxIG

MaxIG

Lyft Seeks $23bn IPO Valuation - EMEA Brief 19 March

Lyft, the ride-hailing company and one of Uber's main competitors, has begun its investor roadshow to pitch its Nasdaq listing as it looks to raise $2bn at a valuation of around $23bn. The company suggested a price range between $62 and $68 per share in its filing to the SEC on Monday, and will use the ticker symbol LYFT when it begins trading. This is a first indication of what ride sharing companies could be worth in public markets as we await Uber's IPO in the coming months.  Theresa M

JoeIG

JoeIG

APAC brief 19 Mar

Markets trade thin ahead of central bank risks: It’s said that money makes the world go around. And given central bankers control the money of the world, it is they who decide when the turning starts and stops. Described this way, central bankers role in the economy sounds Bond-villain-esque. That’s entirely unfair of course – only fringe-dwellers would suggest they are so malevolent. But recent history, based on experiential evidence, suggests that when it comes to financial markets, the action

MaxIG

MaxIG

Technical and fundamental bearish bias; ECB edges up currency wars; UK's next Brexit votes

Fed Sets the Tone for Global Monetary Policy Expectations Global monetary policy trends have shifted towards a more accommodative stance as forecasts for economic activity have stuttered and worries of ‘external risks’ have gained traction. This has sharpened the relative value of currencies as market dig into the grey areas trying to determine which groups are taking greater strides to loosen than their peers. However, it is crucial that all investors – no matter your preferred market nor

JohnDFX

JohnDFX

German Banking Giants Announce Formal Merger Talks - EMEA Brief 18 Mar

Deutsche Bank and Commerzbank have announced formal merger talks which could result in the combined bank holding one fifth of Germany's High Street banking business.  Asian shares rose despite reported potential push back of agreement to end trade war. The Hang Seng gained 1%, the Shanghai Composite surged 2.3% and Japan's Nikkei climbed 0.6%.  Trump's weekend tweets ramped up the pressure on General Motors to reopen Ohio manufacturing plant which recent's closure cut 1,700 jobs. 

MichaelaIG

MichaelaIG

Dividend Adjustments 18 Mar - 25 Mar

Expected index adjustments  Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 18 Mar 2019. If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.  NB: All dividend adjustments are forecasts and therefore speculative. A dividend adjustment is a cash neutral ad

MaxIG

MaxIG

Flowless rally - APAC brief 18 Mar

A flowless rally: It’s being dubbed the “flowless rally”. Equities are ticking higher, but without the fundamental buying-support one might assume. This is especially so when considering the milestone achieved on Wall Street on Friday. Finally, the 2815 resistance level has tumbled, and the bulls have cautiously, quietly rejoiced. There are yellow flags popping up here and there, however, and that is making participants wary. It goes back to this “flowless rally” business: the latest leg of glob

MaxIG

MaxIG

MP's Vote To Extend Article 50 As The Brexit Saga Continues - EMEA Brief 15 March

Theresa May has scheduled another vote on her Brexit deal following the latest round of voting on the house of commons as MP’s voted last night to extend article 50. It still remains to be seen whether this extension will be agreed to by the EU. The US senate has voted to prevent funding for Trump’s border wall, the main sticking point of the government shutdown at the beginning of the year, potentially setting up a veto from the president. The FTSE was up 0.5% yesterday but most o

IGAaronC

IGAaronC

Delaying the pain of uncertainty - APAC brief 15 Mar

Delaying the pain of uncertainty: The pain of uncertainty, when it comes to two of the world’s big macroeconomic issues, looks likely to persist for a little while yet. Two stories, to be elaborated on in a moment, defined market-headlines overnight: a meeting between US President Donald Trump and Chinese President Xi Jinping won’t happen until at least April; while the UK House of Commons has voted overwhelmingly to extend the Brexit-deadline, though with no clear path forward from here. The fr

MaxIG

MaxIG

May there be hope for Brexit? Pound rallies after no-deal rejection - EMEA Brief 14 March

The pound rallied to a new high after British MP reject leaving the EU with a no-deal. As the rejection passed by 312 votes to 278, the pound gained 2% against the dollar, reaching new highs for the year of 1.3339, as investor's received the no-deal rejection as good news for the future of the British economy. Us stocks rose on Wednesday as strong economic data boosted tech shares. The S&P 500 saw gains for a third day in a row, closing 0.69% higher at 2,810.92. The Dow Jones and the

DanielaIG

DanielaIG

APAC brief 14 Mar

Traders see “goldilocks” conditions in US: Both European and US shares rallied overnight. For the latter, the term “goldilocks” has been bandied around. That is: growth in the US, though not as strong as it has been in the recent past, is still solid, while inflation risk is presently low, meaning the US Fed will likely remain in a neutral position. A reminder of this dynamic came in the second of two major inflation releases out of the US this week. PPI data showed a weaker than expected print,

MaxIG

MaxIG

No-Deal Brexit to be voted after May's deal rejection - EMEA Brief 13 Mar

The pound ticked higher after dropping on Tuesday after Theresa May’s amended Brexit deal rejection. Today’s vote in the UK parliament whether to leave the EU without a deal is unlikely to provide excessive pressure on the sterling in case the proposal is rejected, however downside risk exists. Cable was almost flat as of 7:30am GMT trading at 1.31069. The US dollar floated and yields fell on Tuesday after softer inflation data increased the possibility of more dovish policies from the Fe

IG-Andi

IG-Andi

Financials drag on the ASX - APAC brief 13 Mar

Financials drag on the ASX: The ASX200 was legged in the final stages of trade yesterday. It was led by a sell-off in major financial stocks, after a media address made by Australian Treasurer, Josh Frydenberg, during which he announced the Liberal government would not pursue the eradication of trailing commissions for financial advisors and mortgage brokers, as prescribed by Kenneth Hayne QC in the final Banking Royal Commission report. It turned what was an otherwise solid day for the ASX200 o

MaxIG

MaxIG

May Secures 'legally binding changes' to her Brexit Deal; Pound Rallies - EMEA Brief 12 March

Theresa May has announced that she has secured "legally binding changes" to the withdrawal agreement ahead of the pivotal vote on her deal in the House of Commons this evening. Specifically, the changes mean that the Irish backstop would not "become permanent". The pound soared after the news broke rising to a high of $1.3290 before falling back down to its current level of $1.3208, still up over 2% from Monday's low. Boeing shares have fallen over 5% after the fatal plane crash in

GeorgeIG

GeorgeIG

Up, down, turnaround - APAC brief 12 Mar

Up, down, turnaround: It’s been a bipolar market of late. Global stocks are moving in unison, and have swung from broad-based losses on Friday, to broad-based gains overnight. US equities are naturally the exemplar and are a responsible for driving overall risk appetite. With an hour left in trade (and as a quick aside, Wall Street closes at 7am AEDT for the next few weeks) the S&P500 is up well over 1 per cent. It’s been a day of relatively low activity. However, breadth is expansive: over

MaxIG

MaxIG

BoE Tightens Bank Liquidity Controls - EMEA Brief 11 March

Amid the political uncertainty surrounding Brexit, the Bank of England has advised UK lenders to triple their holdings of liquid assets in the run-up to Brexit to prepare for a forecast market meltdown if the UK leaves the EU without a deal later this month. Banks are also being told to adjust their balance sheets on the assumption that they will not be able to swap sterling for USD. Worries over an economic slowdown intensified on Friday after US jobs data significantly missed forecasts,

JoeIG

JoeIG

Dividend Adjustments 11 Mar - 18 Mar

Expected index adjustments  Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 11 Mar 2019. If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.  NB: All dividend adjustments are forecasts and therefore speculative. A dividend adjustment is a cash neutral ad

MaxIG

MaxIG

Week US jobs data - APAC brief 11 Mar

US NFPs: The final bastion of global economic growth is showing cracks in it walls. Arguably last week’s key-release, US Non-Farm Payrolls disappointed market participants over the weekend, printing well below expectations. It wasn’t a clear-cut, poor print. The unemployment rate dropped to 3.8 per cent and wage-growth climbed to 3.4 per cent. The shocker was the headline number: forecast to reveal a jobs-gain of 180,000, the US economy only added 20,000 last month. It’s given rise to concerns t

MaxIG

MaxIG

The EUR takes a hit as ECB is dovish - EMEA brief 08 March

The Euro was nearing a 21-month low yesterday as the ECB was perceived to be dovish after its speech, ahead of US jobs data to be released today. During Thursday's session the EURUSD hit $1.1176, its lowest since June 2017, as the ECB announced it had pushed back the first rate increase to at least 2020 and announced a new round of TLTRO funding for European Banks. China has reported worse than expected trade data for the month of February. Its dollar-denominated exports fell by 20.7 per

DanielaIG

DanielaIG

Huawei Sues The U.S. Government - EMEA Brief 07 March

Global tensions reach new heights as Chinese tech giant Huawei files a lawsuit against the U.S, claiming that a law that bans government agencies from buying the company's equipment is unconstitutional. This comes after Huawei's CFO also filed legal proceedings against Canada. Meanwhile, there has been a report that North Korea are moving to rebuild a nuclear missile site, following a break down last week in the summit between Trump and Kim Jong Un.  In Europe, there is the ECB's board me

JoeIG

JoeIG

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