Chinese stocks decline and the renminbi devalued overnight, despite the PBoC reducing requirements for capital reserves. China's central bank to cut down Reserve Requirement Ratio, releasing 1.2tn Yuan in liquidity, and putting 750bn Yuan ($109bn or £83bn) in cash into the financial system. CSI300 down 3.7%.
The Australian ASX also saw sell offs moving the mining and finance centric index down 1.2%.
US employment figures out on Friday caused a flurry of Treasury sell offs, however
The growth-versus-risk paradigm shifted further in favour of the latter in the last 24 hours, as a multitude of stories compounded the bearish sentiment mounting in global markets. Though Chinese markets were more stable yesterday, an IMF report downgrading global growth forecasts for the first time since 2016 reinforced the possible growth-sapping impacts of the unfolding US-China trade war. Risks in Europe piqued again, following renewed inflammation of tensions between the Italian government
May's Brexit deal rejected by 230 votes making may's defeat the biggest in UK history of sitting governments. The no vote saw the GBP rise 0.05% to $1.28.
As a result of the landslide defeat May is to face vote of no confidence, the vote is expected to be held at 19:00 GMT.
Asian Stocks saw a mixed reaction following the Brexit news. Japan's Nikkei 225 fell 0.55% to 20,442.75 and the Topix index followed suit falling by 0.32% to 1,537.77 whilst the Kospi rose 0.43% to 2,106.1.
U.K. monthly average earnings and monthly unemployment release today at 9:30 BST. Earnings forecast to be stable at 2.6% whilst the unemployment rate is forecast to be 4%. The releases could be an important signal to the current economic health of the UK.
The US federal budget deficit rose 17% to $779 billion in the 2018 fiscal year due to a surge in government spending.
EM currencies rallied to a 2-month high as the Turkish Lira leads the way, climbing as much as 2.1%. The Brazili
Written by Kyle Rodda - IG Australia
Volatility lower; risks remain: Financial markets face far fewer risk events this week, but as has been repeatedly observed in recent months, that does not preclude the possibility of ample volatility. If anything, with so much global economic and political uncertainty at present, the absence of news can make already murky circumstances appear murkier. Traders are still jumpy and rather trigger happy, though implied volatility has been downgraded over the
Markets fall as Fed raised US interest rate from 2.25% to 2.5%
At its lowest the Dow fell over 4% following the announcement (its lowest point in over a year) of which it has now seen a small retracement.
Asian markets we also affected, the Hang Seng was down 1.24% at close whereas the Nikkei lost 2.84%, a 15-month low
The announcement saw the dollar gain almost 0.5% against the dollar basket but as investors have fully digested the statements made by the Fed this now sits a
The pain in emerging markets continues to be too difficult to ignore, although it must be said that the effects of the crisis were relatively contained in overnight trade. There is this sneaking suspicion in markets presently, that whatever the worst outcome is for emerging markets, some of that must inevitably spill into the developed world. The issue is however, it remains to be seen how and where these signs of contagion may first show-up. Now of course it may not do so at all, but as the sco
Theresa May's government holds onto power, winning a no-confidence vote in parliament last night by 325 votes to 306. The Prime Minister has now set out to reach a cross-party solution for Brexit, although this will be extremely difficult as the PM was snubbed by the leader of the opposition last night saying that she is in charge of a "zombie government".
Sterling remained steady as the currency traded around the 1.2875 mark against the dollar after, as expected, Mrs May's government won
Today is considered ‘Super Thursday’ as a number of large UK retailers are set to release their Christmas sales data. This comes after a report from the British Retail Consortium which said that average retail sales saw 0% year on year growth
Jeremy Corbyn is expected to launch an election bid if May loses the Brexit vote, scheduled for Tuesday the 15th. Yesterday saw May suffer another defeat in the house of commons which will mean she will have just 3 days to come up with a plan B if he
Turkeys government has said it would provide liquidity and cut reserve requirements to Turkish banks yesterday. Lira drops.
MSCI world equity index which tracks shares in 47 countries across the globe, down 1.1% yesterday and subdued overnight.
Nikkei bounces 2.3% overnight.
Deutsche Bank pointed to 5 lenders most at risk in the country due to a ‘meaningful presence’ - BBVA, UCG, ING, BNPP, and HSBC - the latter of which was down 0.72% on the closing bell yesterday.
Banco Santander SA skipped an option to call 1.5 billion euros of convertible notes next month, after leaving investors in the dark for weeks. The news had the bonds trade at 97 cents on the euro, after being almost at par last week. A portfolio manager at Financiere de La Cite SAS commented that credit buyers “will need some serious new issue premium to touch that name again”.
Trading in Asia was optimistic on hopes of a trade war resolution as Trump commented during a cabinet meeting on
Market sentiment: Markets put in a mixed day on Friday. The results for global equities were generally poor, but absent were any violent swings in market activity. Individual regions traded -off apparently their own idiosyncratic drivers, characteristic of the diverse web of risks plaguing investors. Chinese indices were the stand-out, climbing more than 2.5 per cent, collectively, while European shares were generally lower, and US stocks were mixed. The mood is still edgy and dour for equities
Asian overnight equity markets broadly subdued for central banks data test.
Dollar steady and range bound before key central bank meetings this week.
Oil is mixed, however brent has eased as trade tensions continue to weigh.
Gold prices have eased on the slightly stronger dollar.
With Facebook, Twitter and Intel results all disappointing last week, the street may be cautious with the release of Apple's end of year tomorrow.
Asian overnight: Overnight markets ha
Facebook shares soared 12% after Earnings report of $2.38 per share crushed $2.19 expectation. Facebook's revenue forecast of $16.39 billion was also outdone coming it at a reported $16.91 billion
Tesla shares fell 5% in after hours trading after disappointing earnings report of $1.93 per share. This came after a 3.8% share rise in the regular session pre-results.
Microsoft also saw underwhelming results report. Despite beating earnings expectation of $1.09 by 1 cent per share, Mi
The US Dollar is holding within tight margins as investors are showing discretion ahead of the US Midterm elections that take place today.
The Dow closed up 190.87 points at 25,461.7 and the S&P rose 15.2 points closing at 2738.31 led by the financial and energy sectors.
The Nasdaq fell 0.38% lower at 7328.85 as Apple and Amazon both fell more than 2%
Apple has had its second downgrade since its earning report last week, as Rosenblatt Securities followed Bank of America
ASX: SPI futures are indicating a 23-point drop at the open for the ASX200 this morning, effectively wiping Friday's solid gains. It comes as no surprise, really, with the lion's share of activity centring around the embattled financial sector. Bank stocks underpinned the rally on the ASX on Friday, led by CBA, in signs that the market believed the sector's recent trend lower was overdone. It may be a case of jumping the gun for traders on that one, as sentiment appears sour once more following
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
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
Asian stock market retreats as China rally fades a day after Chinese stocks posted their biggest one-day advance in over 2 years. The Hang Seng is down 3.3% whilst the CSI 300 is currently down 3.5%.
The Dow Jones and the S&P closed lower on Monday, currently both down around 1% amidst worries over corporate earnings reports due in the coming week and rising geopolitical tensions.
The Saudi All-Share Index is down 4.4% this month, almost its worse month since October last year,
Asia share markets began the week with strong gains as investors hope for both further progress at US-China trade talks in Washington this week and more stimulus from major central banks. Trump stated in a White House news conference that he would be "honored" to remove current tariffs if an agreement can be reached, and to possibly extend the March 1st deadline for a deal.
The Shanghai Composite was up around 1.8% by the end of the morning trading session, whilst the Hang Seng and the Ni
A mixed session for the Asian markets this morning, following the report of the US cancelling the trade meet with Chinese officials due to outstanding disagreements over intellectual property rules. Shanghai composite, Hang Seng Index and Nikkei 225 rose slightly in comparison to ASX 200, Shenzhen component and Shenzhen composite which saw a slight decline
US stocks fall overnight as the Dow Jones Industrial Average declined by over 300 points, the S&P 500 by 1.4% and Nasdaq Composite
Asian overnight: Another bearish session overnight saw Chinese and Hong Kong indices lead the decline, with the first round of tariffs on Chinese goods set to take effect on Friday. The recent decline in the yuan was arrested, with strong dollar selling pressure from Chinese banks looking like intervention from the Chinese authorities. Australian data came in mixed, with a strong retail sales reading counteracted by a lower than expected trade balance figure. Meanwhile, the Chinese Caixin servic
The Asia equity market ex-Japan are looking at their lowest levels since July last year.
Tech sector as a whole was hit by a drop in chip stocks yesterday as well as a knock to social media.
Investors are cautious that new U.S. tariffs on China could come into play at any time.
Yen and Swiss franc are looking to be bid up for those looking at safe harbours.
Non-farm payrolls are out later today.
Asian overnight: Yet again trade concerns weighed on Asian markets,
Yesterday the US Federal Reserve raises interest rates for the 3rd time this year.
Asian stocks post negative sessions following the Fed announcement being led by the technology and energy sectors.
Major currency pairs hold steady whilst the USD basket, despite initial volatility, traded largely flat. Minor gains have been made this morning putting the dollar about a quarter of a percent up.
Oil continues to climb as investors continue to be cautiously optimistic that the Ir
Asian shares fall as the Trump 'tit-for-tat-tariff' goes ahead. China responds.
Ex-Japan Asia down 0.5%, Nikkei down 0.7%. China and Hong Kong markets on holiday.
Dollar eased from it's 3 week high, whilst euro remains subdued.
The World Cup has kicked off with a record 32 teams taking part. Pared with great weather so far this month, and a strong forecast going forward, pubs have the potential to thrive.
OPEC members in Vienna are to meet this week to decide on wheth
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