Written by Kyle Rodda - IG Australia
Time to give thanks: It’s Thanks Giving in the US, so US traders are away from their desks and equity markets in the country are offline. Perhaps it’s something the bulls can be thankful for: the holiday has resulted in very thin volumes across the globe, giving a subsequent ability to take pause from the unfolding market rout. There is so much information awaiting market participants coming into the end of November and start of December, so surely the o
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.
Chinese markets were mixed during the Monday session after being offline for much of last week due to the Lunar New Year holiday. The Shanghai composite gained 0.8% whilst the Hang Send index rose 0.23%. However following Samsung electronic decline of 0.67% the Kospi remained slightly lower after promising recovery from earlier losses.
Oil prices fell over 1% despite refinery fire in Illinois which resulted in shutdown of large crude distillation unit. International Brent Crude futures d
Crude prices gained, as Saudi Arabia leads OPEC and its allies into cutting Oil supply from December. The Saudis mentioned seasonal factors among concerns for weaker demand, as they laid ground for a wider production curb in 2019.
Gold holds steady near a one month low as it keeps losing lustre as a safe haven to the benefit of USD. Spot gold was little changed at $1,209.57 per ounce at 01.21 GMT. Will the commodity benefit from a more divided White House?
Yuan proxies such as AUD
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
Asia and Europe’ Monday: Markets were generally experiencing a much-desired bounce for the better part of Monday, enabled by a day light on market moving information and data. The confirmed election of populist Brazilian leader Jair Bolsonaro boosted emerging market indices. News that German Chancellor Angela Merkel would be stepping down as leader of the governing CDU party, combined with a ratings downgrade of by Italian debt S&P, sent minor ripple
The S&P500 rallied to another record high, as Wall Street shrugged off poor earnings from industrial mega-companies Boeing and Caterpillar, and instead focused on solid-enough results from US-tech giants. The rally was supported by a new-leg lower in global bond yields, after European manufacturing PMI data greatly disappointed expectations, and reaffirmed the continued slowdown in the Eurozone economy. That gave the DAX a lift. The Euro slipped, the Dollar edged higher, and gold climbed by
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
Written by Kyle Rodda - IG Australia
Market sentiment: The final session of the week is upon us, and though a Friday can throw-up any number of shock events, the week has been a relatively good one for equity market bulls. Of course, this is primarily being led by a stable equity market in the US, but that strength has filtered through global equities to generate positive activity. Naturally, the ASX200 has benefitted from this dynamic, delivering an opportunity of circa 215 points for trad
Fed on tap: It’s a commentary written on the fly this morning, as developments out of this morning’s US Federal Reserve meeting are being digested by markets. The Fed has hiked rates just as they were expected to do, with market participants now trawling through the fine print in the Fed’s commentary. We were expecting a “dovish hike”; what we got looks like a “less-dovish than-expected-hike”. The dot plots were revised as presumed: the Fed has told the markets that it expects interest rates to
G20 Summit begins: Market attention turns, almost singularly, to this weekend’s G20 Summit, today. There are numerous issues with significant financial market and global economic implications to be discussed at the event – the general concern about a global economic slow-down the overarching one. But of course, at the centre of everything, almost eclipsing the Summit’s primary purpose, is the highly anticipated meeting on Saturday afternoon between US President Donald Trump, and Chinese Presiden
Flight to safety: There's been a general flight to safety in global markets over the past 24 hours, adding to the bearish sentiment that's been mounting for several weeks. The risks remain the same and there wasn't an event to precipitate yesterday's sell-off. It apparently began in the Asian session, after Chinese equities pared the gains it had added over the previous two trading sessions, then swept through European and North American markets as the day unfolded. Haven assets have caught a bi
China’s dollar denominated imports and exports rise by 21.4% and 15.6% respectively, in comparison to year ago, however, its overall trade surplus was lower than expected, valued at $34.01billion for October, versus $35billion
US Attorney General Jeff Sessions fired by Trump where Matthew Whitaker, his Chief of Staff to take over temporarily
Theresa May announces that the withdrawal deal is 95% complete, and invites Cabinet Ministers to read the UK’s draft deal with the EU
Theresa May´s cabinet is set to meet today in order to try and find a solution to the Irish border crisis, the main headache for Brexit talks in the last few months.
As a result of the uncertainty regarding a Brexit deal, the GBP weakened against its major pairs, falling by almost 1% against the US dollar and 0.2%against the Euro.
The Dow Jones lost 2.32% on Monday falling by 602 points to close at 25,387.18, after Apple suffer another hit and worries over global trade continue.
Trade tensions: The announcement of a bilateral trade agreement between the US and Mexico was the predominant story yesterday, as US President Trump brought the world back one step from the protectionist cliff. Global bonds declined consequently, led by US treasuries, with the yields on benchmark 10 Year US Treasuries rallying to 2.88%. The optimism was tempered throughout the day as the details of the trade-deal were digested however, moderating the news’ effect on markets. It appears now – 24
US stocks register new milestone: The S&P500 registered fresh all-time highs, and touched the 3000-mark for the first time in its history, after Fed Chair Jerome Powell, during his testimony before US Congress overnight, provided implicit assurances that the Fed is open to cutting interest rates at the end of this month. Chair Powell cited weakness in the global economy and trade-conflicts as being the primary reasons for this shift in his view – though he did stress that the fundamental out
It was a choppy day in markets as sentiment vacillated in response to the latest escalation in the US-China trade war. US President Trump made traders wait a little longer than was flagged for his administration's trade announcement, leaving it until well after Wall Street's close to drop the news. Upon the eventual release, initial reactions were unfavourable: though the $US200bn worth of tariffs would go ahead on September 24th at the rate of 10 per cent, this will be upped to 25% come the sta
Fed minutes: The week’s blockbuster event dropped over night: the release of the FOMC’s Monetary Policy Minutes. Equity markets have staged a tentative turnaround globally this week, but it has all been occurring in the shadows of what could be gleaned from last night’s Fed minutes release. When all is weighed up, the document reaffirmed the Fed’s hawkishness, revealing in-depth discussions ranging from cutting the word “accommodative” from the central bank’s language, to debating the possible n
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
Asian equity markets are mixed, however some pushed higher overnight over a volatile trading session as the Chinese yuan bounced off a one year low.
Trump showed displeasure towards the Fed's hikes, criticising policy and highlighting concerns on the potential impact of rising interest rates on the US economy causing the Dollar to sag.
The Comcast / Disney bidding war for 21st Century Fox ended yesterday with the former pulling out of the race. Comcast still plan on pursuing Sky.
The pull-back is here: The pull-back markets were waiting for – the one we inevitably had to have – has arrived. It’s risk-off across financial markets and the optimism that drove global stocks off their December lows has subsided. Relatively speaking, it’s been a day of significant downside, but nothing yet to warrant tremendous fear. It should be common knowledge, but it bears repeating: proper validation that global equities have truly established a recovery ought to be judged not by the late
Risk-off (again): Just when it looked like it was safe to jump back into financial markets, it was risk-off again overnight, as market participants dwelled once more on the myriad of risks facing them. There’s nothing entirely new in what has developed during the European and North American session: the same confluence of factors that has weighed on sentiment in markets have simply reared their head again. It’s probably what makes this situation all the graver, if not at the very least, highly g
A mixed day for global stocks: It’s been a mixed 24 hours for global markets. A series of conflicting messages are being delivered to traders, after the release of some major corporate reports in the past 24-48 hours. Market participants are truly in the meatiest part of earnings season now. The trader’s eye has been fixed on earnings from US tech and industrial giants yesterday and overnight; with the former, thanks to Facebook and Microsoft, beating expectations overall, but with the latter, c
The overarching narrative in global markets is transforming from one preoccupied with the trade war, to one focused on Thursday morning’s (AEST) meeting of the US Federal Reserve. As far as developments in the trade war go, in a week bereft other major stories, traders are demonstrating tentative signs of ease on the subject. Markets are strapping themselves in for the long haul, and a begrudging acceptance that this thing will take time to play out is the prevailing mentality. With that in mind
A flat, but generally positive, night’s trade: Wall Street closed flat to slightly higher overnight, in a day of soft activity that might well be chalked up to the numerous event risks awaiting markets in the second half of the week. The key stories in European and North American trade centred around European growth data; along with the ongoing US earnings season. And on balance, belying the lukewarm day in global stocks, the news was relatively positive. European economic data broadly beat expe
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