Sentiment and Wall Street: Risk appetite appears to be slowly returning to the bellies of investors, with global equity markets experiencing a synchronized push higher to start the week. Wall Street has led the charge of course, overnight adding to the all-time highs achieved at the end of last week. The S&P500 posted a remarkable gain of 0.72 per cent as that index entered rarefied air, while the Dow Jones added 1 per cent to crack the 26,000-mark once more. Trade wars and emerging market t
Add Political Risks to Our Long List of Market Concerns
It isn’t like we are lacking for fundamental motivation for the global financial markets. If anything, there is a surplus of critical themes that could – if properly induced – could single-handedly turn the universal tide. Nevertheless, it seems we will have to add another principal concern to our list alongside trade wars and the transition away from emergency monetary policy: political risk. This is not an unfamiliar market concern.
Powell in Jackson Hole: Markets ended last week with all attention on US Federal Reserve Chairperson Jerome Powell’s speech at the Jackson Hole symposium. Following weeks of scrutiny from the US President Trump, particularly as it relates to the Fed’s gradual rate hiking cycle and its effects on the US Dollar, investors sat poised for insights into whether the political heat, along with growing global financial risks would derail the bank’s plans. On balance, the speech delivered by Chairperson
Expected index adjustments
Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 27 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: All dividend adjustments are forecasts and therefore speculative. A dividend adjustment is a cash neutral a
Australian equity markets gain after leadership vote ends political uncertainty with the Australian leader Malcolm Turnbull ousted by Scott Morrison.
Hang Seng equity market slips after US-China trade talks end without progress.
Saudi Arabia has denied that its $2 trillion Aramco IPO has been cancelled, and that they’re instead waiting for “appropriate circumstances and appropriate time” for the listing.
Trade concerns continue to hit gold prices however they do make gains,
Global markets: Global equities retreated overnight as investors turned their attention to the several risk factors affecting markets at present. The Dow Jones, S&P500 and NASDAQ are all lower for the day, backing-up the modest losses sustained in European shares. The risk aversion is justifiable and reflects the general confusion of investors in a week bereft of powerful good news stories. The focus instead has been on the several distractions bemusing markets, including the unfolding Presi
China trade war escalates as new tariffs kick in: U.S. economy set to slow from here on, damaged by trade war
EM ASIA FX soften as dollar recovers after falling for six straight sessions
Wall Street sets record for longest bull run in history; Key S&P 500 index passes landmark as it goes 3,453 days without major correction
Brexit contingency plan papers released; Brexit could be good news for Britain's farmers
Australian dollar drops as three government ministers
Despite Tuesday being referred to as the worst day in the Presidency of Donald Trump, the S&P touched an intraday record high and equaled its longest bull run of 3452 days, with the record expected to tumble today, baring a disaster.
Dollar steady overnight following yesterday’s dip, with forex markets pretty calm across the board, although we did see a weakening in AUD, which was down 0.2%.
Brent rose 0.3%, whilst US crude was up 0.5% following industry group data that signa
Overnight: The benchmark S&P500 reached new record highs overnight, as the record bull run on Wall Street continued. The S&P briefly touched the 2873-mark in the US session, led higher by consumer discretionary stocks, before selling-off in late trade following the news ex-Trump advisor Paul Manafort has been found guilty of financial crimes. The milestone achieved on Wall Street punctuated a respectable day on global equity markets, which were trading-off greater risk appetite until ear
Asian stocks generally up on hopes trade tensions may ease.
Hopes of a China - US trade resolution pushed up copper, often seen as a barometer for the economic outlook, dragging behind it miners such as BHP Billiton and Glencore.
Venezuela have debased their currency taking off five zeros, along with increase minimum wage by 3000% in and effort to prop up their economy.
Yesterday the world trade organisation confirmed that Turkey had lodged a trade dispute against the US.
Global equities: Global share-markets experienced a lift overnight as European and US investors jumped online to begin the week. The overall mentality now can be characterized as one of cautious optimism ahead of low-level US-China trade talks, mixed with a touch of relief that crises in Turkey and other emerging markets are currently quarantined. Chinese markets picked up steam in late trade because of this point of view, while the Dow Jones represented this broad attitude during the North Amer
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
Expected index adjustments
Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 20 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: All dividend adjustments are forecasts and therefore speculative. A dividend adjustment is a cash neutral a
Last week: At the end of a week that may have been best described as nervous and jittery, markets closed trade in a relatively subdued fashion. The news that the United States and China may re-enter trade negotiations provided the basis for the stability, but the reactions to that news were hardly ecstatic. This is justifiably so, considering investors have become very accustomed to overreacting to news that turns-out to be little more than fluff. The crisis in Turkey has temporarily settled, th
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.
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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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