Wall Street pulls back: On balance, and with Wall Street a few hours from ending its session, it's been a soft 24 hours for equities. The often heard calls of a looming "new-peak" in the market in the shorter term can be heard from some. Momentum has certainly slowed down. The S&P500 has its eyes one 2815 again - that crucial area where that index sold off on three occasions from October to December last year. It could be a slow drive to arrive at a challenge of that level now. The dovish Fe
Stocks finish week on solid footing: Global equities finished last week on a solid footing. Across Asia, Europe and North America, the major share indices closed both Friday and the week in the green – the only notable exception being the FTSE100, which has dipped (typically) because of a stronger Sterling. The solid run into the week’s close came courtesy of more friendly-trade-war headlines, suggesting that significant progress is being made in US-China trade negotiations. A bit of headline ju
Growth fears ease; risk taking subdued: Risk appetite wasn't terribly high overnight. But in saying this, the persistent, vexatious concerns regarding the global growth outlook has continued to abate. Markets have become used to modifications in the growth outlook manifesting in a powering of risk-on behaviour. Given the economic backdrop, the reasons for this are pretty intuitive. Just as far as last night's trade, though, this relationship didn’t hold quite so strongly. There were clear signs
Theresa May has announced that she has secured "legally binding changes" to the withdrawal agreement ahead of the pivotal vote on her deal in the House of Commons this evening. Specifically, the changes mean that the Irish backstop would not "become permanent".
The pound soared after the news broke rising to a high of $1.3290 before falling back down to its current level of $1.3208, still up over 2% from Monday's low.
Boeing shares have fallen over 5% after the fatal plane crash in
Fed Sets the Tone for Global Monetary Policy Expectations
Global monetary policy trends have shifted towards a more accommodative stance as forecasts for economic activity have stuttered and worries of ‘external risks’ have gained traction. This has sharpened the relative value of currencies as market dig into the grey areas trying to determine which groups are taking greater strides to loosen than their peers. However, it is crucial that all investors – no matter your preferred market nor
In the latest round of voting in the House of Commons, MP’s voted to set up a series of votes on Wednesday to see which approach to Brexit has the most support. Later, am amendment on whether another extension could be requested if no progress is made on a deal by the 5th of April.
European indices finished the main session down with the FTSE losing 0.42% and the DAX losing 0.15%, 17 points down from the previous day. Meanwhile, US indices traded relatively flat with less that 0.1% change
Confidence returns to the markets as Asian stocks rallied on Monday over positive Chinese factory gauges and signs of progress in US-China trade talks boosted investor sentiment. Manufacturing activity in China expanded at its fastest pace in eight months in March, reading 50.8 and beating analysts' expectations of 49.9.
Bloomberg has announced that Chinese government bonds will be included in its Bloomberg Barclays Global Aggregate index, a global benchmark of government securities. This
Lyft, the most recent high profile IPO, shares have seen huge trading activity over the first two days of trading as over 41.5 million shares were traded, well over the 32.5 million offered in the IPO. However, the ride-hailing company saw it's shares slump 12% on its second day of trading down to $69.01, below the official IPO price of $72. The downturn comes after the stock rallied to a high of $88.60 on Friday.
US equities surged on Monday due to strong manufacturing data as factory ac
Up, down, turnaround: It’s been a bipolar market of late. Global stocks are moving in unison, and have swung from broad-based losses on Friday, to broad-based gains overnight. US equities are naturally the exemplar and are a responsible for driving overall risk appetite. With an hour left in trade (and as a quick aside, Wall Street closes at 7am AEDT for the next few weeks) the S&P500 is up well over 1 per cent. It’s been a day of relatively low activity. However, breadth is expansive: over
US GDP data capped-off last week’s trade: Trade closed last week on something of a puzzling note. The attention, from a macro-economic point-of-view, was fixed in on US GDP data. Amidst all the fears of slower global growth on one hand and hope for a nascent global economic turnaround on the other, the US growth figures were being viewed as a tangible insight into the cogency of each point of view. Ultimately, the data provided little support for one over the other – and perhaps even deepened th
News flow light thanks to US holiday: SPI Futures are indicating a flat start for the ASX200 this morning, in a 24-hours starved of meaningful news and data. US markets were closed for the Presidents’ Day holiday, meaning a crucial source of information was absent from the news flow. It was perhaps a positive thing for market-bulls: the vacuum left by US markets allowed for Asian and Europe equity indices to seize the improved sentiment flowing from Wall Street on Friday, following further progr
Pricing in Trade Wars Versus Pricing in Recession Risks
Investors are starting to see a path form for the United States and China to find a way out of their economically and financially-damaging trade war. After months of little more than a few words of optimism from only one side of the table – which was frequently reversed only days later – we are starting to see conviction from high level officials on both the American and Chinese sides. This past week was the most encouraging period for
China’s data inspires relief: The Middle Kingdom was at the centre of financial market focus yesterday. Informally dubbed the “monthly economic data-dump”, market participants were granted the opportunity to test the thesis that the global economy’s Q1 malaise is turning around. And though it was only one set of numbers, the answer received from the Chinese data to this quandary was to the affirmative. China’s GDP figures beat economist’s estimates, printing at 6.4 per cent against the 6.3 per c
Trade-headlines determining sentiment once again: Judging by last night’s price action, trade for the remainder of the week is going to very “headline driven”. It’s an obscure way of saying a little bit nervous, a little bit jumpy, and probably a bit irrational. The reason for this judgement comes from market participants’ reaction to some pretty shallow, and conflicting news-stories overnight. As most traders have become used to when it comes to the subject, trade-negotiation news drove sentime
A three-year legal battle has concluded with the EU enforcing stricter copyright laws that could affect the business models of tech giants like Google and Facebook. The new reform plans to protect artists and publishers whose work has been widely spread on the internet, by making the tech firms responsible for detecting and removing content that infringes copyright law. Google will has been very critical about the new reform saying that it will restrict freedom of expression, as its video-sharin
Markets returning to normal trade: Traders in the US and UK returned to their desks overnight, and if price action is any guide, their verdict of the weekend news flow is “not much has really changed”. This isn’t to say the movements in financial markets in the past 12-18 hours have been ones of major conviction. Afterall, volumes are still light and the extent of the moves in price witnessed were modest. Nevertheless, despite what was notionally a tranquil weekend for financial market news, mar
Dear IG community,
There will be some changes to some of our Asian markets over the upcoming Lunar New Year, starting Monday 4 Feb. We will continue to make out of hours index prices throughout any breaks (excluding Taiwan and Malaysia).
See the table below for the relevant information.
Delaying the pain of uncertainty: The pain of uncertainty, when it comes to two of the world’s big macroeconomic issues, looks likely to persist for a little while yet. Two stories, to be elaborated on in a moment, defined market-headlines overnight: a meeting between US President Donald Trump and Chinese President Xi Jinping won’t happen until at least April; while the UK House of Commons has voted overwhelmingly to extend the Brexit-deadline, though with no clear path forward from here. The fr
South Africa’s Platinum Group Metal (PGM) is bracing for industry-wide tough salary negotiations as it urges the government to invest in platinum markets. Chris Griffith, Chief of Anglo American Platinum Ltd, the world No.1 miner, reassured investors that workers are likely to avoid prolonged strikes. Meanwhile, the rand basket price for platinum and its sister metals rose 20% to 25 % this year already. Slowing global growth could pressure the metal, which hit $891 at 6:00am GMT+1 on the IG Web
Deutsche Bank and Commerzbank have announced formal merger talks which could result in the combined bank holding one fifth of Germany's High Street banking business.
Asian shares rose despite reported potential push back of agreement to end trade war. The Hang Seng gained 1%, the Shanghai Composite surged 2.3% and Japan's Nikkei climbed 0.6%.
Trump's weekend tweets ramped up the pressure on General Motors to reopen Ohio manufacturing plant which recent's closure cut 1,700 jobs.
Stock markets continue to recover: Global stocks have maintained their bounce. It’s looking more like a market that is searching for it’s next high now, as price action, from a technical perspective, suggests the recent wave-lower is over. Hence, from here, considering trade-war risks, and therefore anxiety in the market, remains high, the matter becomes whether stock indices are preparing to pop in a new higher-high, or whether what we will see is a new lower-high. The result of that simple bin
Monday’s Open: Trade Wars Status Quo That Really Isn’t
The G-20 Summit has passed and by the accounts of the key players, the results were encouraging. I guess no new fronts have been added to the global economic conflict after the two-day meeting, so that is a silver lining we can hold onto if we wanted to be optimistic to the point of true enthusiasm. According to President Trump’s account of his meeting with his Chinese counterpart Xi Jinping, their discussion was a success as it repor
Trump-Tweet #1: US President Trump announced yesterday what had long been assumed: the trade-truce will be delayed, because of the “very productive talks” going on between his administration and Chinese policymakers. Understandably, the formal recognition that tariffs won’t be hiked to 25 per cent (from their current rate of 10 per cent) on $US200bn of Chinese goods stoked risk sentiment. The overall impact wasn’t quite as deep and broad on one might have hoped, however. The reasoning is logical
Gold prices edged lower as the yellow metal’s rally might be over. Spot contracts hit $1306 at 6:00am GMT on the IG Web Trading Platform. The safe-haven appeal of the gold bullion seems to fade as investors get more bullish on a possibly incumbent US-China trade deal. However, according to Goldman Sachs the combination of a pause in interest rate hikes by the Federal Reserve and more robust growth in emerging markets could weaken the US dollar and support the gold price.
As palladium hit
The start of something new: A new day, week, month and quarter today; and what a difference a little time can make. 3 months ago, at least for some, global financial markets stood at the brink of ruin. It was December 24 last year that the S&P500 hit its low, but it wasn’t until the start of January that something resembling a turnaround in US stocks transpired. Fast forward to now, and Wall Street is over 12 per cent higher, and though at stages has looked extremely vulnerable to turnaround
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