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
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
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
Theresa May faces a crucial cabinet meeting today at 14:00 UK time as she seeks support from senior ministers for her draft Brexit deal between the EU and the UK.
In light of the news of a potential Brexit deal being agreed, the pound rose 0.12% against the dollar on Wednesday morning and 0.16% against the Euro.
The US equity markets generally ended down as Wall Street fails to claw-back earlier losses from the lackluster performance of the energy sector. The S&P slipped 0.2%,
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 Bre
Stocks sell-off in Europe and the US: Global equities appear in pull-back mode. Ignoring Asia’s solid-enough day, European and US stocks have tumbled. The Euro Stoxx 50 shed 1.78 per cent overnight, while the FTSE100 dropped 1.63 per cent, and the S&P500 has given-up 1.65 per cent. It looks as though just when one assumed the latest trade-war developments lacked true bite, the conflicts potential consequences have reared their head in price action. Trade talks this week take-on an even great
A (shallow) sea of red: There is a lot of red across the board for global equity indices to start the week, but the extent and strength of the downside swings have so far proven quite benign. The theme dominating markets yesterday and overnight was that of slower global growth. It kicked-off more-or-less following the release of some abysmal Chinese trade figures, that added further concern that the Chinese, and therefore global economy is heading for a significant slow-down. The data sparked a
Global stocks: Global equities will be forced to prove their mettle this week. Price action suggests that for many equity indices, the market is ambling at a cross-road. The macro-economic challenges moving markets in general haven't been resolved. That remained true during last week's trade, which saw global stocks move higher, in general. The difference this week is there are more numerous and higher impact risk-events that could make or break the stock market's recovery. There will be no shor
US Retail Sales capped-off last week: The climax of last week’s trade was Friday night’s US Retail Sales data release. As is well known, sentiment in the market centres around concern for the state of the global economy. As the biggest component, of the world’s biggest economy, US consumption data was hotly awaited to test the thesis that the global economy is winding down for another cycle. As it turns out: right now, those fears are very slightly exaggerated, if the US Retail Sales data was an
Wall Street rout: Wall Street capped-off last week with another day of considerable losses, even despite Europe posting an okay day. Come the end of the trading session, the Dow Jones had lost 1.81 per cent, the S&P500 had lost 2.06 per cent and the NASDAQ had lost 2.99 per cent. The fact markets are entering the thin holiday period doesn’t help. One assumes that many-a investor would be rather reluctant to be sitting at Christmas lunch this year holding open-positions in equities given this
Reports over the weekend have indicated that the US and China are in the later stages of trade talk discussions in a deal which could see tariffs and sanctions lifted on both sides. Donald Trump tweeted over the weekend asking China to remove all tariffs on agricultural products and that trade talks are "moving along nicely".
Asian equity markets reacted positively to the trade talk progress; the Nikkei rose 1%, whilst the Shanghai Composite increased by 2.5% and the Hang Seng jumped 1.2
Stocks fall as markets adjust US rate expectations: Traders have gone about repricing a world without the same imminence of rate cuts from the US Federal Reserve overnight. US Treasury yields have climbed markedly, during the North American session in particular, dragging with it stock indices. The S&P500 has traded 0.21 per cent lower, as traders apparently take their profits and adjusted their forecasts in line with the new dynamic. The action seen in the last 48 hours has given undue meri
Wall Street’s follow-through: Markets have basked in the afterglow of Wall Street's bull-friendly Friday session. They've gotten what they've been screaming for: some strong data and a more-dovish US Federal Reserve. For the first time in a month, perhaps more, trade has been characterised by a relative sense of calm. The VIX is drifting lower and toward the 20-mark. Stocks are up on Wall Street after a solid day in Asia, and global bonds are down. This could all change in an instant, that much
The Office of the United States Trade Representative has posted a list of goods that the US is considering to impose tariffs on from the EU, which includes aircraft, motorbikes, cheese and wine. The tariffs on some $11bn products from the EU is in response to the subsidies the bloc gives to Boeing's rival Airbus, which has caused "adverse effects to the Unites States".
US equities had a mixed session on Monday coming of the back of a strong growth last week. Both the S&P and Nasdaq ed
Enough Threats of a Currency War and You Find Yourself In One
It has been a common theme in the negotiations between the United States and the countries they have targeted for trade inequities that aggressive language has preceded tangible action. While both sides (the US versus the ‘World’) have been clearly willing to dole out the warnings, it has been the White House that has advanced both action and intimidation far more willingly. At this stage, we have seen the trade war level out som
US-China trade talks have restarted in Beijing as U.S. Treasury Secretary Steven Mnuchin said on Friday that he had a "productive working dinner" the previous night. Investors are hopeful that progress will be made to resolve the bitter trade dispute between the two largest global economies, amid growing concern of a slowing economy as the bond market signals a possible incoming recession.
Theresa May is set to make a third attempt to pass a Brexit deal today, as the MPs are asked to vot
ECB Didn’t Live Up to Lofty Speculation, Will the Fed?
There is a span of high-level rate decisions this coming week, but only one of these updates carries serious potential to not only move its domestic assets but further potential to generate reaction from the entire financial system: the FOMC. This past week, the European Central Bank offered us a look into how far the dovish reach of the largest central banks is currently stretching. Against heavy speculation that the group was going t
Asia shares inch up with yuan ahead f Sino - US talks.
UK minsters release their first ‘no deal’ Brexit documents on Thursday in an effort to prepare for a “worst possible” outcome.
Persimmon results are expected tomorrow, with many in the sector looking to the release as a barometer for the wider housing sector and how a rising inflation rate will affect the market.
Iran has stressed to OPEC over the weekend that no other member country should take up the slack for reduced
EU agrees to postpone Brexit until 22 May if MPs approve a deal next week, otherwise the UK will leave by 12 April, a much shorter deadline
Levi Strauss shares rocket, with initial public offering above expectations at $17, and closing at $22.5
China to potentially miss out on $5.5trillion growth opportunity in digital trade if they do not build effort on data privacy and intellectual property protection issues
Uber to be listed on the New York Stock Exchange and is predicte
Trade tensions between the US and China have finally shown signs of easing as Donald Trump described the conversation he had with Xi on Thursday as "long and very good" and later tweeted that trade discussions were "moving along nicely".
Chinese stocks rally in afternoon trading following Trump's tweet, as the Shanghai Composite rose 2% along with a 3.5% increase in Hong Kong's Seng index.
US stocks also reacted positively to the potential progress of US-China trade relations. The
There is Way Too Much for the G20 to Cover
Typically, the G-20 summits that brings together leaders for some of the world’s largest developed economies cover matters that are important but not especially urgent. For the meeting in Osaka, Japan this coming Thursday and Friday (June 28-29), the members will officially and unofficially have to cover topics of exceeding importance. That would seem unusual considering we are still in the longest bull market on record and the closest state to ge
A shift in perceptions: The fundamentals shifted on Friday. It wasn't a complete "180", but enough to change market sentiment in favour of the Bulls. The highly anticipated monthly Non-Farm Payrolls figure, along with US Federal Reserve Chair Jerome Powell's interview, delivered the goldilocks outcome market participants were craving. For those holding hope for financial markets and the global economy, the information gathered from each event soothed nerves that a major global economic slowdown
The British economy managed to grow in the month of February as manufacturers are said to have increased stockpiling in preparation for the original Brexit deadline of March 29. GDP grew 0.2% MoM in February, despite predictions of economic stagnation amid fears of a global economic slowdown.
The UK and EU have agreed to extend the Brexit deadline until October 31. The "flextension", which allows the UK to leave before the deadline if a deal is approved in Parliament, means that the UK w
Written by Kyle Rodda - IG Australia
Sentiment cooling: Sentiment is cooling and the drivers that have sustained global equity's recovery are subsiding. It's no cause for alarm (yet) by any means. The markets are demonstrating a level of short-term exhaustion after its chaotic December. The same risks remain; traders have just shifted their views. The concerns regarding a slow-down in global growth have abated somewhat, though the issue is still simmering. The outlook for how the Fed will a
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.
The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.
CFD, share dealing and stocks and shares ISA accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd. IG is a trading name of IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. Both IG Markets Ltd (Register number 195355) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.