The U.S. Government has seen turmoil over the weekend after "Trump's Wall" disagreement on Friday resulted in a government shutdown.
Trump will be bringing in the new year with new Defence Secretary. Patrick Shanahan will replace James Mattis on 1st January, earlier than expected.
The end of the year sees further stock slumps, particularly for 2018 tech IPOs. Domo plummeting 25%, Zscaler tumbling 18% and Zurora and SurveyMonkey falling over 10%
Asian Stocks saw a mixed Mond
Written by Kyle Rodda - IG Australia
Overnight bounce: A bounce in equities has finally arrived, unwinding some of the week’s heavy losses. As it currently stands, the NASDAQ – ground zero for much of the recent market correction – is leading the pack, up 1-and-a-half per cent for the day, followed by the S&P, which is up 0.8 per cent, and the Dow Jones, which is up 0.65 per cent. Volumes are down generally speaking, so the recovery today lacks bite – though the Thanksgiving holiday in
Global equity markets are shining with the Japanese Nikkei hitting an 8-month high, Chinese shares on course to make their biggest weekly gains in 2 years, and a strong earnings outlook expected to continue.
US stock market also looks to continue it's march to record highs are strong fund inflows support the market. Figures released on Thursday by EPFR Global quoted a $14.5bn inflow.
The Hong Kong dollar (pegged to that of the USD) strengthened early Friday ahead of the US Federal
Oil seeing volatility ahead of a crucial meeting for OPEC on production. 'History of Crude Oil' video below.
Emerging markets aren't helped by trade war talks and slip to a 9 month low.
Trade war fallout starting to be seen with Daimler's profit warning likely to be linked to the imposed tariffs.
Relatively large macro economic day today. Give a once over to the calendar below and plan your day.
Asian Overnight: Asian markets were largely back in the red overnight, as
Asian equity markets mixed overnight on better than expected Trump trade talks, but poor US futures - notably Facebook results.
Saudi Arabia is suspending the shipment of oil via the Red Sea following an attack from Yemeni Houthi.
Gold steady as dollar eases after US and EU trade talks.
Big results day for the European market with Shell, Diageo, Nestle, Daimler, and AB InBev set to give trading updates.
The corporate focus remains crucial for US markets of late, with
Please see the following analysis from Chris Beauchamp, Chief Market Analyst at IG, a global leader in online trading.
OPEC faces a difficult task this week, as it aims to prop up the oil price without antagonising the US or putting too much strain on state finances by cutting production too much.
The current state of demand and supply
After being in deficit for 2018 and 2019, the oil market is expected to shift back to surplus next year:
Crude output c
US and China meeting in Beijing 7th - 8th Jan, to hold trade talks at vice ministerial level, looking to end the trade war as both economies are affected
Theresa May warns the UK of an ‘uncharted territory’ if the Brexit deal is rejected by Parliament. May announces that she has agreed to some ‘changes’ whilst talking to European leaders including specific measures for Northern Ireland, a greater role for Parliament negotiations on the next stage of the future UK-EU relation and additiona
Figures released for China's exports in the month of January show a 9.1% growth year on year on its dollar-denominated exports. This has beat expectations of a 3% drop in exports predicted for the month of January on the back of December's 4.4% drop. This increase brings the total Chinese trade surplus to $39.16 billion for the month of January, notably lower than the $57.06 billion surplus in December. Despite the better than expected figures, some investors are still weary about this signalli
What happened? The sell-off continues, and despite a brief pause during Wall Street trade that opened hopes of an end to this rout, it was quickly dashed as investors went back to dumping stocks. The chaos that has ensued in the last 24 hours raised myriad of questions. But the first one is inevitably this: why did that happen? In short: there’s not a clear answer. That isn’t to say that there isn’t reasoning behind the sell-off; on the contrary, there’s plenty to explain it. Rather, it’s a matt
The Asia-Pacific Economic Cooperation (APEC) summit ended on Sunday with leaders failing to agree on a formal joint statement for the first time in its 25-year history, due to disagreements on trade. Chinese President Xi Jinping expected to gain influence in the Pacific as Trump and Putin decided not to attend the summit, however Xi left disappointed as the US and allies made it clear that they are prepared to use economic and military means to counter China's influence.
Asian equities we
The ECB announced the end of QE with plans to half asset purchases starting in September.
ECB interest rates left unchanged, but hints at "the summer of 2019" for a change. Euro slides.
Trump plans to impose $50bn in tariffs on China, met with a pledge of retaliation.
BoJ to keep stimulus unchanged.
Brent continued declines as Saudi Arabia and Russia hint that production figures could rise.
Unilevel is "extremely unlikely" to remain in the FTSE after it's plan
The FOMC will begin its 2 day meeting today, with the markets expecting a 25 basis points interest rate increase upon its announcement on Wednesday, which would make this its fourth hike this year.
Homebuilder sentiment in the US declined in December to its lowest point in over 3 years, and could be an early indication of an economic softening.
Theresa May has announced that the "meaningful vote" for her Brexit Withdrawal Agreement is due to be held in the third week of January, a
After twenty years as a prominent business leader in the global auto industry, Carlos Ghosn resigned the top job at Renault late on Wednesday. He will be replaced as Chairmen by Michelin chief Jean-Dominique Senard and as CEO by Thierry Bollore. The news could shake the unstable Renault stock, as markets would balance their trust on the restored leadership with the implied uncertainty.
It was an exciting trading session in Singapore as Jardine Matheson Holdings Ltd plunged about 83% in pr
The G20 summit in Argentina begins today, where discussions around trade, Brexit, and tensions between Russia and Ukraine are expected to be the dominant topics to take centre-stage.
FOMC minutes released yesterday pointed towards another rate hike in December, with concerns that trade tensions and corporate debt could impact growth.
China’s official PMI fell to 50.0 in November from 50.2 last month, adding pressure on the country to implement more economic support measures amid t
Asian stocks slide on further trade war tariffs.
Yen, treasuries and gold gain as traditional safe havens.
UK incomes for those in employment rise at the highest rate since the financial crisis according to IHS Markit yesterday.
CYBG confirmed yesterday it had agreed a £1.7bn tie up with Virgin Money.
Oil prices whiplash, but ultimately fall on expectations that OPEC and Russia will gradually increase output after withholding supply since 2017.
Happy New Year everyone!
Coming to Terms with a Bear Market
We have experienced a remarkable level of volatility recently, which is particularly incredible from the past few weeks considering markets were distorted by holiday trading conditions. When volatility meets thin liquidity, the results can prove explosive. That said, the intensifying fluctuation in the global financial system is not just a phenomenon that could be attributed to shallow markets as we have seen both the price-ba
The AUD continues to trade lower following the Chinese ban of Australian coal to its Dalian port. The ASX has benefited for the weaker exchange rate as it is trading at its highest level since October.
Trump yesterday tweeted about not inhibiting technology from coming to the US with specific references to 5G networks implemented by the Chinese firm Huawei. This suggests a softer stance towards the Chinese firm which recently saw governments stating they would no longer allow the company
Trading in Asia was mixed as US shares stabilized overnight. In the meanwhile, the ongoing discussions between China and the US adds uncertainty. The bottom performer among major Asian indices was the Nikkei, which fell 0.45%.
Oil climbed higher amidst resuming hopes following the 1.2 million barrels per day production cut agreed by OPEC+. However, concerns that the US could much further increase its shale production and the slowing global economy could make the output cut less effective.
The price of Bitcoin jumped 23% on Tuesday, surpassing the $5,000 line and hitting its highest level in almost 5 months in just under an hour. This sudden surge caught investors off guard as Cryptocurrencies' volatile sessions, which were popular at the beginning of last year, have now become a rare occasion. The trigger of this rally is unknown, which is common with unregulated assets, but other digital currencies followed suit, as Ethereum surged 12% and Ripple gained 6.5%.
The US and
Trade War Rumors are Generating as Much Reaction as Official Announcements
The trade war remains one of the most far-reaching and economically-threatening themes currently assailing the global markets. After more than a year of escalation whereby the market has acclimated to a steady flow of stories detailing the malaise this conflict has sown, it should come as little surprise that the market has grown somewhat deadened to hints that conditions may grow marginally worse. Yet, in contrast,
Stocks have fallen whilst the dollar remains effected on trade tensions and tariff wars. The AUD has given up gains on GDP data.
Despite being the most shorted stock on Wall Street (even ahead of Tesla), Amazon pipped the $1 trillion valuation briefly yesterday as it surpassed the $2,050.27 a share requirement.
Its expected that there will be no change in the FTSE 100 for the first time in 12 years today with no individual constituents being upgraded or downgraded.
Written by Kyle Rodda - IG Australia
A big bounce, but a bottom? There’s little shortage of folks calling a bottom in the market this morning, but in truth it’s too early to tell if we are there yet. Sentiment indicators and other market internals suggest that the market could be oversold right now, however a short squeeze here-and-there and a shake-out of a few opportunistic bears doesn’t necessarily mark a change of trend. It’ll be returned to towards the end of this note, but in the inte
China announces a new round of trade talks with the US.
Asian shares, however, hit fresh one year lows on fears of an economic slowdown and the continued Turkish lira volatility.
Tencent's earnings shock really weighs on investor sentiment.
Amazon is said to be considering UK insurance comparison site.
Bitcoin holds above the crucial $6000 mark as crypto traders eye possible bullish reversal.
UK retail sales and Canadian ADP figures are the ones to look out fo
HSBC fails to beat expectations for 2018 earnings, reporting 15.9 percent higher in pre-tax profit and 4.5 percent in revenue, in comparison to 2017, against the expected 23.8 percent increase in pre-tax profit and 6.28 percent for revenue
Trade talks between the US and China begin today in Washington, which according to a top official from the US Chamber of Commerce, can only progress if Trump’s administration also creates ways to enforce a trade agreement
Asian stocks mixed after
Macro-drivers: Global markets endured a night of mixed trading, sandwiched between several risk factors, and the waning optimism of the USMCA. US indices were generally lower, although the large-cap Dow Jones managed to register new all-time highs. European markets were held back by grief surrounding Italian fiscal sustainability, coupled with lingering concerns about the outcome of Brexit. The general sense of risk aversion led to an appreciating USD and climb in US Treasuries, pushing yields o
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