Positioning Extremes Grow More Extreme
There are a few undisputable and universal forces when it comes to the financial markets. One of those all-powerful winds is the concept of risk trends which is referred to by many names such as ‘risk on, risk off’ or referenced unknowingly when we blindly attribute market wide movement to animal spirits through technical cues, smart versus dumb money, panic to greed. Another of these truisms is the allocation of capital. While total wealth does grow
Asian shares gain on US - China trade talks, whilst USD dips.
Rating agency Fitch warned that the chance of a Brexit no deal is a ‘growing possibility’, and uncertainty is so great that it’s impossible to accurately predict a likely outcome.
Reports that Amazon is looking to launch its own comparison site sent ripples through the UK listed rivals moneysupermarket, gocompare, and confused.com owner Admiral.
Aftershocks of World Cup fever and the good weather are seen in risin
Sentiment boost: The unpredictable ebbs and flows of volatile global markets delivered a positive outcome overnight, as equity markets recovered lost ground courtesy of a healthy boost of positive sentiment. The increased investor optimism came following news that US and Chinese officials are in talks to renew trade negotiations. This comes only days from the next round of tariffs due for imposition on Chinese imports into the US from the White House, which will rise to the value of $US50b worth
China announces a new round of trade talks with the US.
Asian shares, however, hit fresh one year lows on fears of an economic slowdown and the continued Turkish lira volatility.
Tencent's earnings shock really weighs on investor sentiment.
Amazon is said to be considering UK insurance comparison site.
Bitcoin holds above the crucial $6000 mark as crypto traders eye possible bullish reversal.
UK retail sales and Canadian ADP figures are the ones to look out fo
Sentiment: Global risk appetite diminished once again overnight, sparking sell-offs across equity markets. The concerns about the fragile state of the Turkish financial system and what that might mean for markets was behind the fall, as traders sought out safe havens to park their money. The US Dollar held its advance consequently, but it was the JPY that saw the most activity, with the USD/JPY falling as low as 110.43. Following Tuesday’s relief rally, it would appear investors aren’t quite pre
MSCI Asia-Pacific index down more than 1%
Turkey has doubled tariffs on some U.S. imports, notably alcohol and tobacco, as a response on what is allegedly deliberate US attacks on the Turkish economy.
Trade war squabbles continue with China saying that US solar tariffs violate trade rules and lodge a WTO complaint.
Dollar rises to a 13 month high which pressures commodities, forcing gold to hit an 18 month low.
Asian overnight: Asian markets traded in the red overnight
Turkey: Financial markets regained their cool overnight, returning to some semblance of normal trading conditions. Traders appear a little more comfortable with the Turkey situation, apparently reassured by the idea that developed economies and financial markets are shielded from the direr consequences of a Turkish borne financial crisis. The core issue is unlikely to disappear entirely, given hostilities between the US and Turkey have only escalated in recent days. Moreover, global fundamentals
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.
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 ma
Expected index adjustments
Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 13 Aug 2018. If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect your positions, please take a look at the video.
NB: Special Divs are highlighted in orange
How do dividend adjustments work?
As you know, constitue
It is Not Wise to Start Financial Fires in a Market so Parched for Value
The financial markets find themselves in between two storm fronts. On the one hand, there is the seasonal liquidity drain that is associated with Summer trade. More historical norm than actual exchange closures, the ‘Summer Doldrums’ present a consistent curb on volume, open interest, volatility and productive trend year after year. However, the restraint is not guaranteed. Though not as common as those Fall (for the N
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Asian markets move lower on the rather tedious reiteration of trade war fears.
Huge volatility spike sees Turkish Lira dropping 13.5% against the USD.
Oil prices edged up on worries that reimposed U.S. sanctions against Iran would tighten supplies.
UK growth (Q2), trade (June) and production data (June) later today.
Asian overnight: Asian markets followed their US counterparts lower, as trade fears continue to impact market sentiment. Japanese markets where the biggest
ASX yesterday: SPI futures have the ASX200 edging slightly higher this morning, following a day in which the Australian market challenged the significant 6300-handle once more. The strong activity perhaps came as somewhat of a shock to traders, given the humdrum session on Wall Street the night before, combined with the floating of several geopolitical risks. Some solid earnings reports set the foundations for the yesterday’s run, namely from financials stocks Suncorp and Magellan; but the real
Asia share markets mixed, China up on stimulus hopes
GBPUSD hits a one year low as Brexit fears continue.
Sterling’s slump guided the FTSE on a stellar rally.
USD/TRY poised for continued big volatility swings over US/Turkey meeting.
Oil price steady after sliding 3% yesterday.
Asian overnight: Asian stocks were largely higher, with Japanese indices providing the one outlier amid a wider rally led by rampant upside for Chinese and Hong Kong stocks. One major drag
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
Earnings solid coming from the US continues to push futures up overnight.
Oil prices held steady, supported by a report of rising U.S. crude inventories as well as the introduction of sanctions against Iran.
Elon Musk tweeted last night regarding taking Tesla private. Stock up as he quoted a $420 price target.
Crypto markets slump following SEC bitcoin ETF delay.
Today there’s a 39.1 point FTSE div (updated from 39.0 on the dividend adjustment post) and a 25.8 Dow div
Solid US earnings yesterday support the Asian market and China sees a rebound.
GBP has slipped to its lowest level in 11 months on Brexit ‘no deal’ fears.
The British heatwave and World Cup has boosted discretionary consumer spending in July according to Barclaycard.
Oil gains as US renews sanctions against Iran.
Gold gains slightly as lower price levels and the key level of $1200 support seen historically induce buying.
Asian overnight: Asian markets were
Expected index adjustments
Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 6 Aug 2018. If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect your positions, please take a look at the video.
NB: Special Divs are highlighted in orange
How do dividend adjustments work?
As you know, constituen
Fresh trade war chat causes Asian equity markets to see red as investors remain spooked.
PBoC helps support Chinese assets by raising the reserve requirements on some forward FX positions, effectively making it more expensive to bet against the the Chinese currency.
US dollar remains steady on the US jobs data on Friday, with currency markets focusing on the yuan.
Saudi crude production printed a surprising dip in July, and with American shale production seemingly plateauing
US-China Trade War Moving Beyond Boundaries
As expected, the relief from trade wars didn’t last long. Not a week after US President Trump and EU President Juncker announced an armistice on tariffs between the two dominant economies, the former revived pressure on its favorite target: China. Trump had issued threats of escalating tariffs against its trade-dependent counterpart over previous weeks, but the impact of the warning seemed to come with shorter half-lives than what we had experienc
BoE raised rates yesterday in a universal vote for a 0.25 percent increase.
Apple wins the race to the first trillion dollar company valuation in history closing up 3% on the day, 35c above the required $207.04 a share mark. Yes, that's trillion with 12 zeros as quoted in the title.
US dollar at 2-week high as trade war dents confidence.
Sonos Inc traded in a range as large as 35% (low to high) in debut IPO.
Oil prices steady supported by speculators and traders placi
Poor EoY results helped pushed the FTSE lower yesterday as miners sold off, whilst the White House threat for further Chinese tariffs had a negative impact on the S&P energy and industrial sector which also suffered.
In the US the Fed decided to hold rates ahead of a likely September hike. Range remains in the 1.75 to 2 per cent channel.
According to a US trade representative, the refusal of China to meet US demands, along with implementation of retaliatory tariffs on US goods
Asian equity markets have crept slightly higher overnight following on from a firm Wall Street finish yesterday.
Apple gains 4% on good results yesterday as it races with Amazon to be the world's first trillion dollar company.
Turkey sharply increased their inflation forecast yesterday to 13.4% just a week after keeping interest rates on hold.
Bitcoin pulls back to a one week low, however still ends the month about 20% higher MoM.
Oil has pulled back after industry da
Asian markets broadly subdued to to global tech sell off.
BoJ pledged to keep it's interest rates 'very low' and added flexibility measure to its stimulus package.
This decision leads the way with the big IR decisions taken by the leading central banks this week. U.S. Federal Reserve concludes its policy meeting on Wednesday and the Bank of England is seen raising interest rates on Thursday.
Dollar ends up paring losses against the yen after the Bo
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