May will start her two-week campaign to sell her historic Brexit deal to MPs as EU leaders have agreed on the UK's Brexit deal during the summit held in Brussels over the weekend, outlining it is "the best and only deal possible".
European Commission President Jean-Claude Juncker explained that anyone who thinks that the EU will offer improved terms if MPs reject the deal will be left "disappointed" - MPs are expected to vote on the 12th of December.
Asian equity markets had a mixe
Reckless Acceleration of the Trade War
With the global (including the US and China) economy already straining under the weight of the ongoing trade wars, the two largest individual economies too steps this past week to leverage the pressure even higher. As expected, China felt it necessary to respond to the upgraded efforts announced by President Trump on a staggering $300 billion more in Chinese goods – the ‘rest’ of the country’s imports that weren’t already facing a tax. It seems the Wh
Chinese stock have rallied with the Shanghai Composite Index gaining more than 4% as officials attempt to support the market as GDP figures last week fell short of the 6.6% growth target by 0.1%
The rest of the APAC region followed suit with all major indices apart from Australia's ASX 200 making gains.
Dominic Raab has stated there may be some flexibility on the Irish border issue. The Brexit Secretary made the comment in an interview which may allow negotiations continue for a s
Geo-political troubles in Turkey push the lira lower, whilst selling in EM currencies spreads to South African rand and Argentine peso.
Asian stocks fall further.
Euro slips as the usual safe haven yen, the Swiss franc, and the dollar bid up.
Cryptocurrencies mixed in the aftermath of the ETF rejection by the SEC.
Asian overnight: Asian markets exhibited a clear risk-off mood, with the fallout from the recent Turkish and Russian led selloff continuing to impact on m
A Habit of Cutting Down Progress Towards Ending Trade Wars
This past week, optimism was dangled in front of the markets and violently snatched away before it became too established. We have been dealing with the escalation of explicit competition in trade policies for the since March, and each hint of progress in turning the major players back from economic stalemate has been consummately dashed. This past week, there were two fronts on which it seemed we were heading for an important brea
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
Is Trump Intentionally Stirring Market Volatility?
The dust is still settling from the most recent string of reciprocal retaliations between the US and China in their ongoing trade wars. As a brief synopsis, the White House frustrated by the lack of progress in negotiations as they were due to break for a month announced August 1st it would slap a 10 percent tariff on the remaining $300 billion in Chinese goods that it was not already taxing. China responded the following Monday by letting
Written by Kyle Rodda - IG Australia
2018 reaches a climax this week: It’s effectively the last serious trading week of the year, and the economic calendar reflects that. Indeed, there’ll be a handful of days between Christmas and New Years to keep across, but with little news and thin trade, it’s tough to imagine anything coming out of them. The markets are still ailing, with the bears firmly in control of price action. There’s so many risk-events coming up this week, traders with a bearis
A G20 Meeting of Extreme Consequence
As far as summits for leaders of the world’s largest economies go – in other words, an already very important affair – the gathering in Argentina this coming Friday and Saturday is crucial. There are a host of global conflicts that will inevitably be addressed at this gathering, but certain aspects will preoccupy the market’s immediate focus. It will be important to recognize what will carry the weight of speculative interest. On the one hand, there are
Weaker sentiment: Risk aversion continues to plague global markets. Despite some positive developments on Friday regarding the US-China Trade War and US Federal Reserve policy, confidence appears to be lowly, resulting in a general flight to safety. It was telling that the NASDAQ couldn't close higher along with the Dow Jones and S&P500 on Friday: the desire to jump into growth stocks keeps diminishing in this market. It raises the risk that market participants have internalised the idea tha
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
Trade war: Geopolitical ructions became the dominant theme late in North American trade, setting up a day for Asian markets distracted by trade-war developments and rising diplomatic tensions in other geographies. The heightened trade war anxieties were piqued by news that China would be slapping retaliatory tariffs of 25 per cent on $US16b worth of US imports, in response to the Trump administrations go-ahead earlier in the week to implement comparable tariffs on Chinese imports. The trade conc
Fed raised rates as expected last night, and sees more hikes likely this year.
Trade war tensions between US and China continue. Trump to meet top trade advisors today.
Surprisingly weak data out from China regarding retail sales.
South African rand hits a 6 month low whilst the Mexican peso continues to fall to a 16 month low.
Oil largely unchanged, but larger than expected decline in US inventories, and an unexpected drawdown in g
Written by Kyle Rodda - IG Australia
America votes: Now we play the waiting game, it seems. The US electorate have set off to the polls to vote in their mid-term elections, and the world now awaits their decision. Financial markets aren’t exempt from the interlude, trading on very thin volumes, as traders opt to stick to the sidelines until a result is revealed. There appears a very general unwillingness to jump-in to markets ahead of the crowd on this event, presumably owing to the incredi
After yesterday´s meeting in Brussels, Theresa May said “both sides have given sufficient direction” and she will meet Jean-Claude Juncker again on Saturday “to discuss how we can bring to a conclusion this process and bring it to a conclusion in the interest for all our people”, indicating that a final deal is likely to come very soon.
The 27 remaining countries in the EU will meet with Theresa May on Sunday, where they will vote on the Brexit deal. Spain, the only country that was set t
New headlines to chase: The discourse in markets shifted early this week to where the next upside catalyst would come from. It needn't be substantial; just enough to fuel sentiment and attract buyers back into the market. In the last 24 hours, market participants received what they'd be yearning for: the combination of an in-principle deal in US Congress for border-security funding, along with the announcement that the US-China trade-truce deadline could be extended, has stoked bullish sentiment
Trading in Asia was mixed as investors wait for more clarity on the US-China trade deal. The top performer was Shanghai Composite which was up 0.7% while Japan’s Topix was down 0.2%.
Gold prices edged lower as the greenback gained from stronger than expected economic data. Spot contracts hit $1287.34 at 5:00 am GMT, having been almost flat on the day, as can be seen on the IG Web Platform. What is the short- and mid-term fate of the gold bullion, as investors seem to be rushing to equiti
This week sees Brexit negotiations between the UK and EU come to the forefront once more. IG's own Sara Walker will be joined by Nick Cawley from Daily FX and Simon French, Chief Economist to UK merchant bank Panmure Gordon, to discuss how the meetings outcome could affect the FX market.
The second #IGForexChat
You can join us on Thursday 18 October at 6.30pm (BST) live on IGTV to get involved with the conversation. Submit your questions directly to the panel by adding your questions
US mid-term elections have resulted in a gridlock in Washington, Trump's Republican Party hold the senate having had key victories in Texas, Indiana and North Dakota.
The Democrats have gained control of the House of Representatives which has set up a divided Congress until the next presidential election in 2020.
The dollar has dipped as the dust settles on the results of the mid-terms, the Euro and Yen both rose 0.2% against the dollar. The dollar index, which measures the value o
Will Holiday Conditions Save Us from Fundamentals and Speculation?
Normally, there is not a strong appetite for holiday trading conditions because it can materially slow markets – and most traders seek out volatility, even if it is as much a risk as a basis for potential. However, this year, there will be a strong appetite for the typical conditions associated with the time of year. In 2018, we have seen an extraordinary bout of volatility with dramatic bear waves in benchmark risk assets
Bitcoin’s chart is finally generating some interest in technical traders as prices are slightly down from Wednesday’s record highs. April last year saw a “short squeeze” that had the price of Bitcoin jump from $6,700 to $8,000 in a single move. Other cryptocurrencies are following the trend as investors look for the drivers in the volatility surge.
Gold prices edged higher after steadying on Wednesday. The yellow-metal keeps rotating around the mean as the effect of the rally in global st
Overnight action: Wall Street equities closed effectively flat, while bond yields climbed, commodities generally lifted, and currency markets shuffled into place, as markets continue to position for this week’s massive G20 meeting in Osaka. Market activity was relatively high, and sentiment does seem to be balancing on a knife’s edge: US President Trump flippantly suggested his “Plan B” from this weekend’s trade-talks is to slap on China “billions and billions” of more tariffs. Meanwhile, bond m
Asian markets were largely negative, dropping for a 3rd consecutive session on further trade escalation
US - Canada trade talks knocked as Trump threatens to quit NAFTA altogether
US markets closed for Labor Day
Oil prices dipped lower on Monday on the back of rising supply from OPEC and the U.S
Asian overnight: The two main rounds of negotiation on Friday have come back to bite markets at the start of this week, with the breakdown in US-Canada trade talks and UK-EU Br
Jackson Hole Symposium Has Too Much to Cover
There are two particularly important, multi-day summits scheduled for this coming week. Given the individual market-moving capacity of US President Donald Trump, the G7 Summit from August 24th through the 26th will be particularly important to watch. He has announced remarkable change in policy at or around such large events before – particularly when provoked by flabbergasted global counterparts. There are five general topics on the agenda whic
The US and China have agreed a temporary ceasefire on additional tariffs on each others goods at the G-20 summit in Argentina to allow for trade talks to continue in the new year.
Dow futures soared more than 450 points as investors have reacted positively to the US-China news. Nasdaq futures also rose around 2.7%, followed by S&P 500 futures which jumped 1.7%.
The dollar depreciated on Monday as investors looked to take up positions in riskier assets, such as the Australian do
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